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 […]

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 […]

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 […]

DR Free Zones Sales Tax Filing and Payment

 By Maria Arthur (marthur@aclaw.com) On June 29th of 2011, the Dominican Tax Administration (DGII) issued General Tax Norm 5-2011 of Filing and Payment of the Sales Tax by Dominican Free Zone Enterprises. Such Norm provides that all enterprises benefiting from the Dominican Free Zones regime through Free Zones Law 8-90 of January of 1990, shall submit a […]

Transfer Pricing Regulation

 By Maria Arthur (marthur@aclaw.com) On June 2, 2011 the Dominican Tax Administration (DGII) issued the General Norm 04-2011 of Transfer Pricing thereby establishing the rules applicable to operations that take place among related entities when the amounts transacted differ from those agreed among independent entities. Its provisions reach any operation or transaction made by enterprises or […]

Dominican Tax Exemptions

 By Maria Arthur (marthur@aclaw.com) Dominican Republic Decree 162-11 on Requests and Processing of Tax Exemptions was issued on On March 15th, 2011. Decree 162-11 establishes, among others, the following: Previous processing of tax exemptions before the Ministry of Finance. All requests of exemptions supported under laws, concessions, contracts ratified by the Dominican Congress shall be submitted […]