Revenue Service of the Dominican Republic (DGII) First of all, let

Dominican Republic for most people is the same association: eternal summer, white sand, bounty, no taxes. In fact, although the country and there are certain tax benefits, taxes still have to pay. Today's post is a continuation of a series of publications devoted to tax in the Dominican Republic. We will tell you what are the taxes and how does their camp in the Dominican Republic, what types of businesses are not taxed or have tax benefits.
Revenue Service of the Dominican Republic (DGII) First of all, let's talk about the tax office uidai of the Dominican Republic. While the collection of taxes in the Dominican Republic dates back to colonial times, the tax office in its current form, has a little more than 80 years. First there was the tax office in 1935, under the guidance of the Ministry of Finance. Prior to 1949, the Dominican uidai Republic did not exist income tax, and the tax office was engaged in patent fees, the spread of the excise tax on cigarettes and alcohol. One year later, there was a law number 5911 on tax incentives. Who has the tax benefits in the Dominican Republic? Exemptions apply to the following categories of people: foreign investors, pensioners and low-income families, farmers, production in the franc zone, as well as investors, developing tourism in the regions of the country are not popular. What should uidai I pay taxes in the Dominican Republic? Taxes in the Dominican Republic are regulated by the Tax Code (Law 11-92). Below we give a small summary regarding taxes and some of the important aspects in the Dominican Republic. The tax system in the Dominican Republic has a territorial principle, ie All sources of income are taxed, regardless of who receives the income - a Dominican uidai citizen, an alien or a legal entity. However, income earned abroad is not taxed, with the exception of the financial benefits of persons uidai residing in the Dominican Republic. Foreign nationals who are resident in the Dominican are subject to tax on foreign income until three years later, after receiving a residence permit. Residents of the country are all individuals who are in the country for more than 182 days a year. Any natural or legal person with a vocation to pay taxes in the Dominican Republic must be registered in the national registry of taxpayers (Act number 53 of 1970). Here are the most important tax, the tax legislation of the Dominican Republic. For individuals: Individuals born or residing in the territory of the Dominican Republic uidai pay income tax as follows: Income up to RD $ 290,243.00 per year exempt from taxes on income from RD $ 290,243.01 to $ RD 435,364.00 - 15% of income from RD $ 435,364.01 to $ RD 604,672.00 RD-RD - $ RD 21,769 plus 20% of income in excess of RD $ 435,364.0 Income from RD $ 604,672.01 - RD $ 55,630 plus 25% of the income of RD $ 604,672.01 This scale will be adjusted annually for cumulative inflation for the previous year, according to data published by the Central Bank of the Dominican Republic. uidai For legal entities: Entities pay twenty-five percent (25%) of the net taxable income for the financial year (Article 297). Unlike some countries, taxation is the same for all legal persons, without distinction between corporations, limited liability companies or entrepreneurs. Value added tax (ITBIS) rate of VAT is 16%. In the case of import uidai of goods from abroad is calculated uidai based on the total cost, including shipping, insurance, etc. There is a happy goods which are exempt from VAT: - goods intended for export - basic food products - drugs - Fuel - fertilizer - books and magazines - financial services - medical services uidai - pension uidai services - land transport of people and goods - electricity, water and garbage - rent - housing and communal services - personal medical services VAT must be added to all goods and services that are not included in this list. Where can I learn more about taxes? If you want to do business in the Dominican Republic, we recommend that you necessarily use the services of an accountant who knows the local tax code. In addition, any tax questions you can ask on the phone, through the website or in person at the tax office of the Dominican Republic. Official site of the tax service - www.dgii.gov.do. Here you will find information on taxes, addresses and phone numbers to your nearest tax office.
Such a system of taxation unreasonable, unjust and even more can not be called. We would be worth something and turn out at the southerners. In any case, the fact that the exemption applies to the payment of VAT.
Taxation in the Dominican Republic, taxes and
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