Dominican Regulation Improvement Decree 258-18

On July 11, 2018 the Dominican Republic Executive issued decrees 258-18, 259-18 and 260-18 for the purpose of making more efficient some government procedures and optimizing the country’s institutional regulatory scheme. Decree 258-18 begins the first stage of the National Regulatory Improvement Plan. Among the main objectives of Decree 258-18 of Regulatory Improvement is to […]

DR Taxation and Tax Treaties

Income tax: The Dominican Government levies corporate income tax at the flat rate of 27% on profit after allowable tax deductions. The basis for determining taxable income is locally sourced income and foreign source income derived from investment and financial gains. There are very few differences between statutory profit and taxable profit, apart from the […]

DR Investment Tax Incentives

Exports Promotion: Law 84-99 of Promotion of Exports of the Dominican Republic provides for certain incentives, such as the reimbursement of taxes and customs duties paid by the exporters for raw materials, components, intermediate goods, labels, containers and packing material, if those are incorporated to export goods or returned abroad in the same condition that […]

Dominican Customs Tax

By Maria Arthur (marthur@aclaw.com) The General Customs Administration has established the system for self- determination of the customs tax obligation. Through this system, the taxpayer of the customs tax obligation (importer, consignee, customs agent or broker) has the power to set, by itself, the quantity of the customs tax obligation. The above means that the […]

Dominican companies tax incentives

On May of 2015, the Center for the Industrial Development and Competitiveness awarded 16 Industrial Qualification Certificates to companies that will benefit from the provisions established under Law 392-07 of Industrial Development and Competitiveness; including tax and custom duties exemptions, in order to promote actions that shall endeavor the improvement in the productivity of processes, […]

DR Taxation of Property Transactions

The purchase or sale of real estate property in the Dominican Republic should be made through a written contract in which the parties reflect their agreement about the identity of the property being sold, the sales price and the terms and conditions of the sale. It is recommended that the seller and the buyer obtain […]

Real Estate Property Release Tax Norm 08-2014

By Maria Arthur (marthur@aclaw.com) On December 22nd of 2014, the Dominican Tax Administration (TA), published DR Tax Ruling 08-2014 regarding the Sale of Real Estate Property and which provides for the Release of the Same from the seller’s information registered at the TA’s registration system. Individuals and legal entities that sale a real estate property […]

Regulation for Transfer of Motor Vehicles

Dominican Regulation of Transfers and Endorsements of New and Used Motor Vehicles, 06-2013 was issued on December 12, 2013 and provides for a procedure  to formalize the transfers of vehicles in favor of concessionaires and dealers. Said procedure includes the duty, by the owner of the vehicle, to notify the transfer or exchange of the […]

Dominican Tax Administration Tax Havens List

 By Maria Arthur (marthur@aclaw.com) On May 20, 2013, the Dominican Republic Tax Administration (DGII) published its first Notice regarding Countries Considered as Low Tax Jurisdictions and Tax Havens in which the DGII lists the States or territories regarded as “Lox Tax Jurisdictions” and “Tax Havens”, pursuant to the provisions of Article 2 of the General Regulation […]

Tax Regime of Trusts in Dominican Republic

On August 24th of 2012, the Tax Authorities (DGII) issued Ruling 02-12 regarding the Tax Regime of Trusts with the purpose of establishing the regulations and procedures to be complied with by trusts and the parties thereto involved, with respect to their tax duties and obligations. Pursuant to the provisions set forth under Law No.189-11 […]