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Dominican Republic: Tax measures in budget bill 2020

Dominican Republic: Tax measures in budget bill 2020

Following the introduction of the general budget bill for 2020, the following tax-related actions are anticipated:

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  • The Dominican tax authority (DGII) may appoint new collection agents for value added tax (VAT). Agents and industries would be expected to be appointed as collection agents.
  • The DGII plans to expand the scope of the current VAT rules to include online or digital services, with financial intermediaries to be appointed as withholding agents.
  • Following the enactment of a system for electronic tax receipts (“e-CF” as known in Spanish) earlier this year, the DGII plans to expand the use of e-CF to all companies doing business in the Dominican Republic.
  • A payment and refund mechanism is to be developed regarding alcohol and cigarettes exported to Haiti (a refund system for excise tax and other consumption taxes).
  • All gaming establishments would be required to use a digital platform administered by the DGII, for purposes of the tax on gross sales (1% rate).
  • Construction-related regulations are expected to provide rules for tax returns filed by individuals and legal entities that engage in construction and engineering projects.
  • A “traceability system” would be implemented for the hydrocarbon sector.
  • A digital platform would allow for expedited procedures to obtain and renew free trade zone permits.
  • The DGII would provide rules for the capital gains tax calculation and collection.
  • The DGII has expressed its intention to expand its tax information network with several other jurisdictions, for the purpose of reducing tax evasion practices (similar to the FATCA regime in the United States).

These tax measures under the general budget bill may be subject to change and revision during the legislative process as both chambers of the legislature consider the bill. 


Read a November 2019 report [PDF 193 KB] prepared by the KPMG member firm in the Dominican Republic

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