Dominican Republic: Special tax regime to settle tax debts

Dominican Republic: Special tax regime

A new special tax regime has been created under Law 46-2020.

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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.

Under the regime, 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.

Taxpayers that want to participate under this special tax regime have a limited period of time in which to act (180 days after the issuance of the general rule by the DGII).

Read a July 2020 report [PDF 196 KB] prepared by the KPMG member firm in the Dominican Republic

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