Dominican Republic: Special tax regime for disclosure and revaluation of assets
Dominican Republic: Special tax regime
A new special tax regime has been created under Law 46-2020.
This special tax regime allows taxpayers to voluntarily report the value of their assets to the Dominican tax authority (DGII) and to settle any resulting tax obligations. Under the special tax regime, tax at a rate of 2% would be imposed on the total amount of registered assets (or a fraction of the revalued amount of assets).
The intention is to establish a legal framework for disclosing non-registered assets held by taxpayers, as well as disclosure of the asset valuations in accordance with market values.
Taxpayers that may apply for relief under Law 46-2020 include individuals (Dominican tax residents or non-resident aliens with assets located in the Dominican Republic); legal entities (including branches); and undivided estates.
Under the legislation, unresolved tax liabilities can be settled by paying the amount of the tax owed plus a single year’s worth of interest on this amount—thereby eliminating any additional surcharges and penalties. Payment plans are available allowing taxpayers up to 180 calendar days to satisfy the liability.
Taxpayers that want to participate in the special tax regime will have 90 days from 20 May 2020 (the effective date of the law) to file an application.
Read a March 2020 report [PDF 275 KB] prepared by the KPMG member firm in the Dominican Republic
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