Taxes and Law Blog Archive Taxes in the Dominican Republic
In the Dominican Republic there is a fairly complex system of taxation. plm On all goods and services will be charged VAT (08.06%), sales tax (7%), and another 10% "service charge". Total taxes in the Dominican Republic can be up to 23%, which is a lot for a Caribbean resort.
Once the property was purchased, a copy of the Commercial Contract, title to the property seller, as well as documents of identification Seller and the Buyer shall be deposited in the tax office DGII, to get permission plm to pay Transfer Tax.
Law 173-07 of July 17, 2007. Transfer tax is reduced to three percent plm (3%) of the value of the property involved in business or the value of the contract, the amount of which is determined by the tax inspectors. plm Tax Authority has the right to inspect the property before allowing the payment of tax. This tax must be paid within six months after the signing of a commercial contract.
Once the transfer tax has been paid, the original commercial contract, title to the property and the receipt of payment of transfer tax shall be deposited in the registration office in the jurisdiction where the property is located. Registration Office registers the purchase in its records, and Seller cancel the title releases a new title to the Buyer. Issue a new title takes 30 to 90 days.
Houses and apartments, commercial plm establishments and vacant lots, located in the urban areas of the Dominican Republic, the value of which exceeds five million pesos (5,000,000 RD $) subject to 1% tax. Exempt from the payment of this tax:
Homes whose owners have reached the age of sixty-five, if these houses were not transferred over the previous fifteen years, and the owner owns the dwelling as the only real estate in the Dominican Republic.
If the owner is a natural person, the tenant must keep ten percent (10%) of the rental fee plus 16% tax on the value added tax (ITBIS). If the property owner is a legal person, the tenant must keep only the 30% VAT (ITBIS).
ISA - an annual 1% tax in the Dominican Republic that is applied to the total value of assets of businesses, entrepreneurs without legal entity and other entities, including real estate, registered on their balance sheet. Tax assets in the Dominican Republic must pay all entrepreneurs plm without legal entity and organizations having or not having a business transaction.
ISR - the annual income tax paid by natural or legal persons for the tax period. Foreigners have to pay tax for the income earned in the Dominican Republic, and after the third year of residence in the country, they must pay their income plm from foreign sources. Branches of foreign companies are the same companies with the Dominican financial rights and obligations.
Norma ISR with entities plm since 2007. 25% of the annual net profit. Norma ISR with entrepreneurs without legal entity plm from the year 2007. is 25%, with a tax deduction for the first 257 280,00 (two hundred fifty-seven thousand two hundred and eighty) pesos according to the following scale, which is adjusted according to the annual inflation:
To inherit property in the Dominican Republic by foreigners is also no restrictions. Inheritance is taxed from 17 to 32% depending on the degree of kinship and the heir to the deceased. plm However, if the heir is outside of the Dominican Republic, used an additional fee of 50% of the taxes.
In the Dominican Republic, the law of "compulsory inheritance", when some part of the inheritance is by law obliged to go to certain relatives. For example, plm if the alien has a child, then 50% of the inheritance should go to the child, regardless of the law of the country of which the deceased was. If you want to get around this requirement Dominican legislation, it is worth to own property not directly, but through a special holding company.
Law 171-07 establishes financial incentives for foreign or indigenous people, who receive plm a monthly pension or benefits from the government, an official agency plm or a private foreign entity, and have indicated their intention to change their place of residence in the Dominican Republic and local pension.
Citizens who receive a permanent retirement and main income is generated abroad can also take advantage of the benefits of this law. A person who wishes plm to take advantage of the benefits provided by law, shall receive a monthly pension not less than 1500 (one thousand plm five hundred) U.S. dollars or a monthly minimum fee 2,000 (two thousand) U.S. dollars.
The tax on capital gains is 25% of the difference between the purchase price and the sale price of real property. In a
In the Dominican Republic there is a fairly complex system of taxation. plm On all goods and services will be charged VAT (08.06%), sales tax (7%), and another 10% "service charge". Total taxes in the Dominican Republic can be up to 23%, which is a lot for a Caribbean resort.
Once the property was purchased, a copy of the Commercial Contract, title to the property seller, as well as documents of identification Seller and the Buyer shall be deposited in the tax office DGII, to get permission plm to pay Transfer Tax.
Law 173-07 of July 17, 2007. Transfer tax is reduced to three percent plm (3%) of the value of the property involved in business or the value of the contract, the amount of which is determined by the tax inspectors. plm Tax Authority has the right to inspect the property before allowing the payment of tax. This tax must be paid within six months after the signing of a commercial contract.
Once the transfer tax has been paid, the original commercial contract, title to the property and the receipt of payment of transfer tax shall be deposited in the registration office in the jurisdiction where the property is located. Registration Office registers the purchase in its records, and Seller cancel the title releases a new title to the Buyer. Issue a new title takes 30 to 90 days.
Houses and apartments, commercial plm establishments and vacant lots, located in the urban areas of the Dominican Republic, the value of which exceeds five million pesos (5,000,000 RD $) subject to 1% tax. Exempt from the payment of this tax:
Homes whose owners have reached the age of sixty-five, if these houses were not transferred over the previous fifteen years, and the owner owns the dwelling as the only real estate in the Dominican Republic.
If the owner is a natural person, the tenant must keep ten percent (10%) of the rental fee plus 16% tax on the value added tax (ITBIS). If the property owner is a legal person, the tenant must keep only the 30% VAT (ITBIS).
ISA - an annual 1% tax in the Dominican Republic that is applied to the total value of assets of businesses, entrepreneurs without legal entity and other entities, including real estate, registered on their balance sheet. Tax assets in the Dominican Republic must pay all entrepreneurs plm without legal entity and organizations having or not having a business transaction.
ISR - the annual income tax paid by natural or legal persons for the tax period. Foreigners have to pay tax for the income earned in the Dominican Republic, and after the third year of residence in the country, they must pay their income plm from foreign sources. Branches of foreign companies are the same companies with the Dominican financial rights and obligations.
Norma ISR with entities plm since 2007. 25% of the annual net profit. Norma ISR with entrepreneurs without legal entity plm from the year 2007. is 25%, with a tax deduction for the first 257 280,00 (two hundred fifty-seven thousand two hundred and eighty) pesos according to the following scale, which is adjusted according to the annual inflation:
To inherit property in the Dominican Republic by foreigners is also no restrictions. Inheritance is taxed from 17 to 32% depending on the degree of kinship and the heir to the deceased. plm However, if the heir is outside of the Dominican Republic, used an additional fee of 50% of the taxes.
In the Dominican Republic, the law of "compulsory inheritance", when some part of the inheritance is by law obliged to go to certain relatives. For example, plm if the alien has a child, then 50% of the inheritance should go to the child, regardless of the law of the country of which the deceased was. If you want to get around this requirement Dominican legislation, it is worth to own property not directly, but through a special holding company.
Law 171-07 establishes financial incentives for foreign or indigenous people, who receive plm a monthly pension or benefits from the government, an official agency plm or a private foreign entity, and have indicated their intention to change their place of residence in the Dominican Republic and local pension.
Citizens who receive a permanent retirement and main income is generated abroad can also take advantage of the benefits of this law. A person who wishes plm to take advantage of the benefits provided by law, shall receive a monthly pension not less than 1500 (one thousand plm five hundred) U.S. dollars or a monthly minimum fee 2,000 (two thousand) U.S. dollars.
The tax on capital gains is 25% of the difference between the purchase price and the sale price of real property. In a
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