All taxpayers, whether individuals or legal entities, must be up-to-date with tax payments to the General Directorate of Internal Taxes (DGII) to avoid fines or penalties that can lead to unnecessary expenses.
Meeting tax obligations on time is not an easy task; due to lack of time, ignorance, or inadequate advice, one may commit infractions that result in monetary penalties.
What is the DGII? In this article, we explain tax infractions, how to avoid fiscal penalties, and how to prevent tax penalties from the DGII.
What is the DGII in the Dominican Republic?
The General Directorate of Internal Taxes (DGII) is the institution responsible for collecting and managing major taxes in the Dominican Republic and is governed by Law 11-92.
Law 11-92
Law 11-92 of the Tax Code outlines the duties and obligations of taxpayers, as well as the consequences of non-compliance.
Article 257 of this legislation states:
“Failure to comply with formal duties will be penalized with fines ranging from five (5) to thirty (30) minimum wages.”
It is also important to stay updated on tax regulations, fiscal laws, and updates, as well as to present information related to tax obligations to the Tax Administration.
What is a tax infraction?
A tax infraction or violation refers to various forms of non-compliance with tax obligations and laws as outlined in the Tax Code.
These infractions will be penalized by the Tax Administration through monetary fines.
Types of Tax Infractions and Their Penalties:
| Tax Infraction | Definition | Penalty |
Tax Evasion | Partial or total omission of tax, as well as submitting a false or inaccurate declaration. | Fine of up to twice the amount of the omitted tax. If the amount of evaded taxes cannot be determined, the fine will be between 10 and 50 minimum wages. |
Delinquency | Paying tax debt after the established date. | 10% surcharge in the first month or fraction of a month and an additional 4% for each subsequent month or fraction of a month. |
Failure to Comply with Formal Duties of Taxpayers, Responsible Parties, and Third Parties | Actions or omissions that prevent or hinder the maintenance of control and auditing of taxes by the Tax Administration. | Fine of 5 to 30 minimum wages. |
Failure to Comply with Formal Duties of Tax Officials and Employees | When a tax official or employee violates their duties, harming the taxpayer or the tax authorities. | Depending on the severity of the case, the fine may range from a 25% salary deduction, suspension without pay for up to 3 months, to dismissal from the position. |
Failure to Comply with Duties of Public Officials Outside the Tax Administration | Any public official, whether municipal, state, from public enterprises, or autonomous institutions, who fails to fulfill obligations imposed by tax laws and regulations. | Fine of 5 to 30 minimum wages; without prejudice to any administrative or criminal responsibility incurred. |
How to Avoid Fines from the DGII?
To avoid fines for tax infractions, whether for delinquency, tax evasion, or other mentioned violations, you should consider tax planning and fiscal management, submit accurate and truthful tax returns, and pay taxes and obligations on time.
If you have a business, company, or are a public official, it is essential to have appropriate tax advice.
At Contadores Dominicanos, we have a team of highly qualified advisors and professionals ready to assist you.
