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.

Do you want more information about Dominican Free Zones Sales Tax Filing and Payment advisory services? Contact Us.

ABOUT THE AUTHOR: Maria Arthur Rodger is a Partner leading the Private Client, Successions and Tax areas at Arthur & Castillo Advisers and Consultants in the Dominican Republic. She specializes in private client, successions, tax, real estate valuation and advisory (Master in Tax and Finance Studies from Georgetown University in Washington, D.C. & Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience. She is also a Certified Public Accountant (CPA), Certified Valuator, Business Bankruptcy Expert and English and Spanish Interpreter.

Email: marthur@aclaw.com

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

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