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Category: News

President Danilo Medina Issues Decree Amending the FASE Program

Decree 184-20 modifies the FASE program:

1. Starting June 1st, employers will be allowed to have a part of their workforce benefit from FASE 1 (furloughed workers) and another part of their workers under FASE 2 (those kept on payroll), which was prohibited under the initial decree. A worker may only benefit from one of these two FASE categories at any given time.

2. Workers from colleges who continue to operate with the authorization of the Ministry of Labor may benefit from the FASE program.

3. Workers from the following sectors will now be allowed to benefit from the FASE program:

  • Dental centers.
  • Psychological centers.
  • Ice cream shops.
  • Restaurants.
  • Private clinical laboratories.
  • Dermatologist centers.
  • Plastic surgery centers.
  • Media.
  • Hair transplant centers.
  • Private security companies.
  • Non-profit organizations that already receive transfers from the central government.
  • Veterinaries.

4. Starting June 1st, FASE will be in force for a maximum period of 30 days and will be reviewed at the end of this period.

President Danilo Medina Extends State of Emergency and Curfew

By decree 188-20 President Danilo Medina, decreed on June 1st, 2020 the extension of the national State of Emergency for an additional 12 days applicable to the entire Dominican territory, effective from today June 2nd until June 13th. All social distancing measures in force during the past State of Emergency period will remain in force and the daily curfew has been set from Monday through Saturday, from 7:00 p. m. to 5:00 a. m., and Sundays from 5:00 p. m. to 5:00 a. m.

DGII Exempts the Corporate Asset’s Tax Installment on Micro and Small Enterprises

The Dominican Tax Office (DGII) granted an exemption to micro and small enterprises on their Corporate Assets tax installment and extends the filing and payment of income tax (ISR) for legal and natural persons, undivided estate and taxpayers under the Simplified Taxation Regime (RST) from May 29th until June 29th, 2020. Companies that have not declared income will not be able to benefit from this exemption.

Likewise, the exemption on the payment of the tax advance with due date of June 15th is maintained. This measure is limited to businesses with income up to RD$58,314,600 filed in the total income box of the Income Tax Return affidavit (IR-2) for the 2019 fiscal period.

Taxpayers with the obligation to pay Corporate Assets tax at the end of December 31st may pay in three equal and consecutive payment installments in the quarter of June – August 2020. These installments will not be subject to interest or surcharges and will be generated automatically at the time of filing

First Phase of Incremental Reopening of Economy Begins on May 20th

Economy Reopening:

  • Micro companies (10 employees) can work with no more than 5 employees.
  • Small companies (10-50 employees) can reopen with no more than 50% of their employees.
  • Medium and large companies can reopen with no more than 25% of their staff.

Public institutions will work with 50% of their employees and could increase this percentage if necessary.

  • Measures regarding Transportation and Transit:
  • Public transportation will run from 6:00 a.m. to 6:00 p.m.
  • Private collective transportation will be allowed to begin servicing in the next phase.
  • Full border closure is maintained.

Sector-specific Reopening Schedules:

  • Supermarkets, pharmacies, construction sector, free-trade zones, ports, airports (only for ferry flights), industrial sector and agricultural companies will begin operations at 7:00 a.m.
  • Public sector activities will start at 8:00 a.m.
  • Hardware stores, vehicle dealerships, financial sector, furniture and electrical appliances stores, service sector companies, textile stores, among others, will begin operations at 9:00 a.m.

The National Export Free Zone Council (CNZFE)’s Announcement on Companies Reactivating their Operations

The National Export Free Zone Council (CNZFE) announced on April 7th , 2020, that all companies within the sector planning on reactivating their operations would have to formally submit a reactivation of operations' request before the CNZFE on company letterhead with the following information:

  • Date of reactivation of operations.
  • Justification for the re-opening.
  • Workers who will be reinstated.
  • Workplace area measures.
  • Distancing and hygiene protocol to be enforced to contain the spread of the COVID-19, such as: mandatory temperature monitoring, use of face masks, workplace clean-up and hygiene measures in all areas and including for employee transportation companies. The CNZFE has 48 hours to process the request.

The Dominican Tax Office (DGII) Temporarily Exempts VAT (ITBIS) Payment on the Following Medical Products

  • Hydrogen peroxide (oxygenated water), even solidified with urea.
  • Rubber surgery gloves and disposable gloves for use in medical examinations and laboratories.
  • Non-woven fabric masks and clothing used exclusively in hospitals, including disposable ones.
  • Medical, surgical, or laboratory sterilizers.
  • Breathing devices (resuscitators) and tomography equipment managed by an automatic data processing or treatment machine.
  • Thermometers for clinical treatment or data processing.

This measure is effective as of 4/14/2020 and will remain in force during the state of emergency period.

New Tax Relief Measures by the DGII to Lessen the Economic Impact of COVID-19 in the Dominican Republic

1. New deadlines for filing and payment the following obligations:

  • Other Withholdings and Supplemental Wages (IR17) dated 4/13/2020 are extended until 4/24/2020.
  • The following payment obligations extended until 5/29/2020: The Corporate Asset Tax’s second installment, Individual Persons and Undivided Estate Income Tax (IR-1) and the first installment of Income Tax under the Simplified Income Tax Regime based on income, natural persons and agricultural sector as well as the Income Tax based on income, legal persons and purchases as of 4/30/2020.

2. Taxpayers may pay their March VAT (ITBIS) in up to 3 installments, without any interest or surcharges. These new authorizations for payments will be generated automatically when the VAT Affidavit with deadline 4/20/2020 is filled.

3. Taxpayers may pay their March excise tax on alcohol and tobacco products in up to 3 installments, without any interest or surcharges. Authorizations for payment will be generated automatically when the excise tax on alcohol and tobacco products Affidavit with deadline 4/20/2020 is filled.

Income Tax Advance Exemptions and Deferral of Both Payment Agreements and the Entering Into Force of Law 46-20

  • Taxpayers, including corporate entities and sole proprietorship, with monthly obligation to pay Income Tax advances are exempt from payment of said advance for the March 2020 fiscal period. This provision does not apply for large taxpayers, except for those whose business have been ordered to shut down during the State of Emergency.

 

  • A three-month extension is granted for taxpayers with payment agreements in force as of 3/19/2020, applicable to installments with closing dates in April, May and June 2020.

 

  • Law 46-20 on Voluntary Wealth Disclosure is deferred until further notice. This statute establishes a special and transitory tax amnesty for taxpayers to voluntarily disclose or reassess all their movable and real estate properties located in the country or abroad.