PROCEDURE FOR THE TEMPORARY CESSATION OF A COMPANY

PROCEDIMIENTO PARA CESE TEMPORAL DE LAS OPERACIONES DE SOCIEDAD COMERCIAL - PROCEDURE FOR THE TEMPORARY CESSATION OF A COMPANY

TEMPORARY CESSATION OF OPERATIONS

To temporarily discontinue the operations is the ideal choice for a company wich regular actions have been paused, inactivating this way, its tax responsabilities with the Dominican State.

This legal interruption may be valid for a period of not less than one (1) year and not exceed three (3) years, with the requirement that no economic activity will be performed during this time, otherwise, the cessation will be canceled.

To apply for this procedure, you must be up to date with the payment of the corresponding taxes and submit to the General Directorate of Internal Taxes (DGII). The following documents:

  1. Application letter or Affidavit Form for the Registration and Updating of Company Data, signed and sealed.
  2. Affidavit of Income Tax previously presented in a local administration and marked as cessation.

After the approval of the cessation, the Tax Return on Income (ISR) must be presented annually informatively and continue paying the Tax on the Assets.

This process avoids the inactivation of the Merchants registration certificate (RNC) of Legal Entities, Foreign Companies, Accidental Companies or Individual Companies for the non-declaration of any tax during three (3) consecutive fiscal years. After the expiration of the three (3) years cessation authorization, a period of ninety (90) days is set to regularize their status, restarting their operations or formalizing their definitive cessation, without any penalty. In the event that said entities do not regularize their situation within the aforementioned period, the disqualification of their RNC will be carried out for any purpose.

If this formality has not been acomplished, to enable the inactivated RNC, the taxpayer must pay the sanctions or fines that are applied for the purpose in accordance with the provisions of Article 257 of the Tax Code.

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