Annual Income Tax Sworn Declaration

What is the annual income tax sworn declaration? When should it be filed? Who should submit it? In this article, we explain important aspects to consider about the annual income tax sworn declaration in the Dominican Republic.

What is a Tax Payment Sworn Declaration?

A sworn declaration is a document, either printed or digital, in which taxpayers report their income or earnings from their activities, as well as the declaration of goods and services generated by their economic activity and their assets at the end of the fiscal year.

Annual Income Tax Sworn Declaration

This declaration is used to calculate the Income Tax (ISR) for legal entities for a specific fiscal period.

Annual Asset Tax Sworn Declaration

This sworn declaration is used to determine the tax on assets or properties owned by taxpayers, including legal entities and individuals with sole proprietorships.

ITBIS Tax Payment Sworn Declaration

This sworn declaration is used for the calculation and payment of the tax on the transfer and importation of industrialized goods (ITBIS), in addition to the provision of services, in a specific fiscal period.

What is Income Tax?

Income tax is a tax applied to all income earned by individuals or legal entities over a specified fiscal period.

For individuals or natural persons, the fiscal period is equivalent to a calendar year.

If you are a legal entity or company and need help or advice for filing this declaration, at Contadores Dominicanos we are ready to provide the help you need, so you won’t have to worry about the paperwork and can focus on your business.

What percentage should be paid on Income Tax?

In the Dominican Republic, the income tax rate for legal entities is 27%.

Individuals have three progressive scales of 15%, 20%, and 25% and must pay on the net taxable income for the fiscal year, according to the following scale from 2017 to the present:

Annual Scale	Rate
Income up to RD$416,220.00	Exempt
Income from RD$416,220.01 to RD$624,329.00	15% of the excess over RD$416,220.01
Income from RD$624,329.01 to RD$867,123.00	RD$31,216.00 plus 20% of the excess over RD$624,329.01
Income from RD$867,123.01 onwards	RD$79,776.00 plus 25% of the excess over RD$867,123.01

Source: Dirección General de Impuestos Internos (DGII)

Income Tax Sworn Declaration for Legal Entities (IR-2)

According to the Dirección General de Impuestos Internos (DGII), a sworn declaration is defined as:

The declaration used to liquidate the Income Tax (ISR) for legal entities over a specified period.

Thus, it is a document through which legal entities and companies declare their income from rents, profits, or benefits.

What is the form for the legal entities’ ISR sworn declaration?

It is a sworn declaration, in form format, either printed or electronic, where legal entities declare their income, providing evidence of the goods and services rendered by their economic activity at the end of the fiscal year.

Applicable rate: 27% on the Net Taxable Income.

Who should submit it?

All legal entities and companies, regardless of their economic activity:

Limited Liability Company (SRL).
Individual Limited Liability Company (EIRL) and Sole Proprietorship.
Public Limited Companies (SA).
Simplified Public Limited Companies.
Among others.

When and where should it be filed?

The Income Tax Sworn Declaration must be filed by legal entities and companies within 120 days following their closing date.

This declaration can be submitted through the following means:

Through the DGII Virtual Office (Dirección General de Impuestos Internos) on the website (online).
The local administration office (in case of issues with submitting the declaration virtually).

Filing dates

Closing Date	Fiscal Period End
December 31	May 3
March 31	July 29
June 30	October 28
September 30	January 28

To submit the Annual Income Tax Sworn Declaration, visit the website of the Dirección General de Impuestos (DGII Virtual Office) and follow these steps: