Law 51-23 dated August 10^th of 2023, which promotes a special temporary audit, management and recuperation of the tax debt provides: (i) a tax status of limitations statement of certain tax debts by the Dominican Tax Administration, (ii) tax debt payment facilities, (iii) a reduced tax audit process and (ix) Government tax debt amnesty; for a limited period in place until December 20 of 2023.

The statute of limitations statement by the Dominican Tax Administration would apply to tax debts for periods until and including 2015 of Income Tax, Corporate Income Tax, Tax on the Transfer of Industrialized Goods and Services (“ITBIS” for its Spanish acronym), Assets Tax, Real Estate Assets Tax (“IPI” for its Spanish acronym), Free Zones Tax and lottery, betting and sport benches taxes; provided that the tax payer complies with the requirements indicated in Law 51-23 and subject to the confirmation of the DTA.

Tax Debt Payment Facilities consist of a series of amnesties which vary depending on whether the debts arise from tax payer’s returns, tax adjustments or in appeal process and that will depend on whether the same are immediately or fractionally settled; while the same shall be subject to certain conditions and the acceptance or from the Dominican Tax Administration.

The Reduced Tax Audit Process may apply to tax payers that are subject to an internal audit of the taxes indicated in Law 51-23, and request such process for the application of the Reduced Process Rate, subject to the parameters of the Effective Tax Rate indicated in said Law 51-23, that shall determine the payable amount.

The Tax Amnesty for Government Institutions will apply to tax debts up until August 1^st of 2020, derived from Income Tax Withholdings and ITBIS withholdings made by Government Institutions to individuals or legal entities however not paid to the Tax Authorities, regardless of whether such Institutions request to benefit from this pardon, and subject to certain conditions indicated in this Tax Amnesty Law 51-23.

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ABOUT THE AUTHOR: Dra. Maria Arthur Rodger is a Partner leading the Tax & Private Client areas at Arthur & Castillo Law Firm and Attorneys in the Dominican Republic. She specializes in tax and real estate advisory (Tax LLMs in Georgetown Law Center in Washington, D.C. & Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience. Dra. Maria Arthur is also a CPA, Certified Bankruptcy Liquidator and Legal Interpreter.

Email: [email protected]

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.

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