Category: Business

DEBERES DE LOS CONTRIBUYENTES EN LA REPÚBLICA DOMINICANA - DUTIES OF TAXPAYERS IN THE DOMINICAN REPUBLIC

DUTIES OF TAXPAYERS IN THE DOMINICAN REPUBLIC

DUTIES OF TAXPAYERS

Inspired by the idea that there should be a dynamic relationship between the state and citizens, so that the latter receive an effective protection of their rights, through the continuous state of the provision of the necessary elements for a harmony in the society, the Dominican Republic considers taxation as a constitutional duty.

Are considered as taxpayers, the individuals and legal entities, from which a generating action is verified, according to the economic activities carried out or the assets posseds, thus generating the obligation to pay the taxes established by law, in proportion to the incomes or assets.

For the compliance of tax obligations, Law 11-92 establishes the duties of taxpayers, of which the following stand out:

  1. Enroll in the National Registry of Taxpayers (RNC). Communicate changes of address, commercial name, telephone, activity or any other that modifies the tax liability.
  2. Submit the corresponding declarations, for the determination of the taxes, along with the documents and information that are required.
  3. Keep the records and accounting books required.
  4. Facilitate to the Tax Administration staff the inspections and verifications.
  5. Attend the offices of the Tax Administration when presence is required.
  6. Communicate the desition to terminate the business for some justified cause.

Breach the tax obligation constitutes a default on the taxpayer, as established in article 26 of the tax code, without any requirement or any action from the Tax Administration.

The default will consist of the obligation to pay, together with the tax, a thirty percent (30%) compensation interest over the effective interest rate fixed by the Monetary Board, for each month or fraction of the month of default. This interest will accrue and pay until the total extinction of the obligation.

Organizing your Business in Dominican Republic

Organizing your Business in Dominican Republic

Foreign companies and/or individuals may conduct business in the Dominican Republic by setting up a Dominican Corporation.

Any company duly organized and existing in accordance with the laws of its country of origin can set up a branch in the Dominican Republic by registering at the Business Registry and obtaining a tax number from the Internal Revenue Agency. Additional approvals may be required in certain regulated industries.

Registration requires that (a) all incorporation documents of the foreign company be translated into Spanish and authenticated, (b) corporate minutes establishing a registered office in the Dominican Republic and naming a local representative, and (c) particulars of the local representative and the company’s shareholders.

Registration is not necessary if the activity of the foreign company is limited to acquiring equity in a local business entity or to occasional transactions in the Dominican Republic. Continue reading “Organizing your Business in Dominican Republic”