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Tag: Dominican Tax Office

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

President Enacts Voluntary Wealth Disclosure Law

Law 46-20 on Voluntary Wealth Disclosure was recently enacted by the president of the Dominican Republic. 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 and abroad, including those that have not been previously declared.

The purpose of law Law 46-20 is that taxpayers normalize their fiscal obligations and voluntarily disclose their assets at market value before the Dominican Tax Office, through the payment of a one-time and definitive 2% amnesty tax overall disclosed or reassessed assets.

The assets which can be disclosed under the law include real estate or movable assets located in the country or abroad; inventories for sale or production; national or foreign currency deposited in authorized institutions; financial instruments or securities; and any other type of asset provided that the reassessment implies a decrease in assets.

In practical terms, real estate holders who did not register their property’s real value at the time of purchase will be able to apply to this law through the payment of the 2% market value amnesty tax, and, thereby, eliminate the risk of getting hit with a hefty 25-27% capital gains tax in the event of a future sale of their undervalued asset.

In addition, this law eliminates 100% of all surcharges on any type of tax debt, as well as any late payment interests exceeding one year. Taxpayers will have a period of 90 days starting from the law’s date of enactment, to benefit from the tax amnesty.

Please feel free to contact us should you wish to receive additional information about the law’s amnesty application process.