DONATIONS IN THE DOMINICAN REPUBLIC
The donation is a legal act consisting in the free transfer by one person (donor) to another (donee), of movable or immovable property, with the sole purpose of benefiting the latter. Therefore, it is characterized by being an unilateral, consensual contract and free of charges, and must comply with all the formalities established by law for the validity of conventions.
For these purposes, they are considered incapable of acting as donants, minors and legal interdicts. However, these can be grantees, without the ability to exercise, being necessary in both cases, the representation of a guardian or a curator respectively. In the case of grantees, moral persons without a legal existence are incapacitated, so that in order to be able to receive a donation, it is enough to be conceived at the time of donation, as expressed in article 906 of the civil Dominican code.
This act must be done by a notary public, under penalty of nullity. The donation will not produce an effect with respect to the one that made it, more than from the day in which the acceptance act is notified. Also, this process is subject to the payment of the tax equivalent to 27% of the value of the donated goods, whose payment falls on the donee. However, it can be stipulated in the act that it will be paid by the donor. In the case of donations with encumbrances, deductions will be made, applying the tax only to the extent that it is benefited.
To determine this tax it is necessary that the beneficiary declares the received donation, depositing the required documents, within 30 days after the donation is made, without the possibility of obtaining a prorogation, there being surcharges for the breach of this requirement.
The payment of this tax does not apply for donations that do not reach a value of five hundred pesos (RD $ 500.00); those made to public establishments and charity institution, or public utility recognized by the State; those that are made to create or foster homestead.
Donation is not revocable, excepting the cases in which the conditions were not executed, by ingratitude or by new descendants.