The Dominican Republic implemented certain tax relief measures to assist with the recovery of the tourism sector as well as other tax relief provisions enacted in the Complementary Budget Bill, No. 222-20—all having a goal of providing relief with regard to the economic effects of the coronavirus (COVID-19) pandemic.
Among the relief measures for the tourism sector, an exemption from payments of advanced corporate income tax is provided for a six-month period. An exemption from the asset tax also has been granted for the tourism sector until June 2021.
Among the measures in the Complementary Budget Bill, No. 222-20, a tax amnesty program is available for corporate income tax and value added tax (VAT) liabilities for 2017, 2018, and 2019 allowing taxpayers to pay a 3.5% tax on the average of the net operating income declared during these years.
Also, tax liabilities currently under appeal, either before the Dominican tax authority (DGII) or a tax court, may be settled with a single payment of 70% of the corresponding tax liability, thus eliminating the surcharges and interest fees.
Read a September 2020 report [PDF 192 KB] prepared by the KPMG member firm in the Dominican Republic
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