Forty years ago (in 1978) it was unthinkable to have the communication resources with which we have at present. Globalization was not known and trade barriers were very common. Continue reading “About Intellectual Property Rights in the Dominican Republic”
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. Continue reading “PROCEDURE FOR THE TEMPORARY CESSATION OF A COMPANY”
REGISTRATION OF FOREIGN COMPANIES TO BECOME SUPPLIERS OF THE DOMINICAN GOVERNMENT
The sale of products and services to the Dominican Government to meet their industrial needs and specialized services, is an opportunity to access a large volume market, available not only for national physical and legal entities, but also for foreigners, being this a practice ruled by the principle of equality and free competition, which demands to respect the participation of all possible bidders. Continue reading “REGISTRATION OF FOREIGN COMPANIES TO BECOME SUPPLIERS OF THE DOMINICAN GOVERNMENT”
TAX INCENTIVES TO RENEWABLE ENERGIES
Through Law No. 57-07, the Dominican Republic consolidates its efforts to increase its unconventional energy diversity, with the main objectives of reducing dependence on imported fossil fuels, stimulate private investment projects, developed from renewable sources of energy, and essentially, reduce the negative environmental impact caused by energy operations with fossil fuels. Continue reading “TAX INCENTIVES TO RENEWABLE ENERGIES IN THE DOMINICAN REPUBLIC”
REGISTRATION PROCESS FOR A FOREIGN COMPANY
The Dominican Republic, through the General Law of Commercial Companies, No. 479-08, grants foreign companies the opportunity to regularly perform trade acts in the country, or establish a branch office or permanent establishment in the national territory. Continue reading “REGISTRATION PROCESS FOR A FOREIGN COMPANY IN THE DOMINICAN REPUBLIC”
RIGHTS OF TAXPAYERS
Counterposing to the duties of taxpayers established in Law 11-92, the Directorate-General of Internal Taxes of the Dominican Republic (DGII), contemplates the inherent rights of these taxpayers, in order to provide an efficient and appropiate service to the same, always complying with the requirements of equality, proportionality and rationality that must govern the tax process. Continue reading “RIGHTS OF TAXPAYERS IN THE DOMINICAN REPUBLIC”
REGISTRATION OF RENT OF REAL ESTATE PROPERTY IN THE DOMINICAN REPUBLIC
The rental of real estate is a very common practice in the Dominican Republic, which, despite having legislation for its regulation, is constantly conditioned by a detrimental informality to the renter and to the tenant as well.
One of the main vices in this practice is the non-registration of the contract in the Agricultural Bank, required by law 17-88, along of the sum of money delivered as deposit by the tenant.
This money amount must correspond to the equivalent of at least one (1) month’s rent in contracts up to one year; of two (2) months of rent in the contracts of two years or of a year and a half and onwards; and three (3) months of rent in contracts of three years or more, or two and a half years onwards.
Whether this amount equals the parameters already indicated, or that include advances of greater amount, there will always be an obligation on the property owner to make the deposit in the Agricultural Bank along of the original rental contract in the fifteen (15) days of its validity. In case of a breach of this term, the owner will pay a surcharge of ten percent (10%) for each month of delay, without exceeding in any case fifty percent (50%) of the amount to be deposited, being this added to the initial amount and in favor of the tenant.
This registration is of great importance, due to the regulatory role of this institution in cases such as denial of the owner to accept the rent payment, that could be deposited in the Agricultural Bank, as a real payment offer, free of any contribution or charge.
The Agricultural Bank must also pay the tenants an interest for the amounts received on deposit, at a rate similar to that established for savings accounts, interest that will accrue annually to the deposit.
INTERDICTION IN THE DOMINICAN REPUBLIC
Interdiction consists of the legal status of persons who have been deprived of the capacity to exercise, by judicial decision, for which they are put under the protection of a represent for their legal acts and the administration of their assets.
The importance of this legal figure lies in the mean of protection it symbolizes for people who are under dementia or mental derangement in a definitive or temporary manner, due to the vulnerability they face before society, and could be victims of deception that affect their heritage or integrity. Continue reading “INTERDICTION IN THE DOMINICAN REPUBLIC”
REGISTRATION OF FOREIGN NON GOVERNMENTAL ORGANIZATION
The Dominican state has considered non-profit institutions as relevant entities for the strengthening and development of a democratic and participatory civil society, due to its contributions in the execution of useful or fruitful objectives for the whole society. Continue reading “REGISTRATION OF FOREIGN NON GOVERNMENTAL ORGANIZATION 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:
- Enroll in the National Registry of Taxpayers (RNC). Communicate changes of address, commercial name, telephone, activity or any other that modifies the tax liability.
- Submit the corresponding declarations, for the determination of the taxes, along with the documents and information that are required.
- Keep the records and accounting books required.
- Facilitate to the Tax Administration staff the inspections and verifications.
- Attend the offices of the Tax Administration when presence is required.
- 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.