The filing and payment of sales tax by Dominican Free Zone Enterprises is regulated under Dominican Tax Administration (DGII) General Tax Norm 5-2011 of June 29th of 2011.

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 sworn statement including the Sales Tax applicable to Free Zones Sales by reporting the Total Free Zone Sales and the Local Market Sales, and applying, only in the latter case, the 2.5% of the value of the monthly sales in the Local Market.

The obligations established in such Norm constitute formal duties that shall be complied with by such enterprises and any breach or lack of payment can be sanctioned under the provisions of the Tax Code and the other special tax laws and regulations.
General Norm 5-2011 entered into effect on July 1st of 2011.

ABOUT THE AUTHOR: Dra. Maria Arthur Rodger is a Partner, Head of Tax & Private Client at ACLAW, a law Firm in the Dominican Republic. She specializes in tax law (Tax LLM in Georgetown Law Center & Tax LLM in Universidad Pompeu Fabra in Spain) with more than 20 years of experience in tax advisory since the enactment of the Dominican Tax Code. Dra. Maria Arthur is also a CPA, Certified Bankruptcy Liquidator and Legal Interpreter.

Email: [email protected]
Phone +1.809.472.2222

Find out about our Services and Contact Us.

Copyright 2011 Arthur & Castillo | Dominican Law

Disclaimer: This publication is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. For specific technical or legal advice on the information provided and related topics, please contact the author.