Do you know how many types of monthly declarations exist in the Dominican Republic? What are the types of sworn declarations in the Dominican Republic? The monthly sworn declaration is a document through which taxpayers can declare their income.
In the Dominican Republic, there are several types of mandatory or tax-related monthly declarations for both individuals and legal entities. In this article, we will explain what they are and the main aspects to consider regarding these types of declarations.
Legal entities and individuals who receive income from salaries, investments, rents, benefits, financial gains, rental of real estate, among other sources, must submit these obligations to the Directorate General of Internal Revenue (DGII).
Definition of Sworn Declaration
A document through which taxpayers can certify under oath the economic activities they have carried out to determine their tax obligations.
If you are an individual or a legal entity and need help or advice for submitting these monthly declarations, at Contadores Dominicanos, we are ready to provide you with the assistance you need.
What types of monthly sworn declarations exist?
Monthly Sworn Declaration of the Tax on the Transfer of Industrialized Goods (IT-1):
What is it?
The Declaration of the Tax on the Transfer of Industrialized Goods (ITBIS) is a tax that levies the final consumption of goods and services within national and foreign territory, thus increasing the final amount of the product or service.
Who must submit it?
All legal entities must submit this declaration, as well as individuals whose economic activity is subject to this tax.
When is it submitted and paid?
The ITBIS Sworn Declaration must be submitted and paid no later than the 20th of each month.
How to submit the ITBIS Sworn Declaration?
It can be submitted virtually or in person, through the website of the Directorate General of Internal Revenue (DGII). Submissions can be made through the virtual office or in person at local offices using Form IT-1.
It should be noted that this declaration must be submitted even if there is no tax to be paid; in such cases, an informative sworn declaration will be submitted.
Information Submission
For the submission of the ITBIS Sworn Declaration, according to General Standard No. 07-2018, taxpayers must submit their information to internal taxes through the following data submission formats:
Format for Submitting Purchases of Goods and Services (606):
With this format, taxpayers must provide information on the purchases made and submit it monthly to internal taxes no later than the 15th of each month.
Format for Submitting Sales of Goods and Services (607):
Through this format, taxpayers will submit information on sales made to internal taxes no later than the 15th of each month.
Format for Submitting Canceled Receipts (608):
With this format, taxpayers must provide information on the canceled receipts, and it must be submitted no later than the 15th of each month.
Note: Formats 606, 607, and 608 must be submitted with zero values if there are no operations.
Declaration of Employee Withholdings (IR-3):
What is it?
It is the declaration where legal entities register the corresponding withholdings on salary payments and any other cash remuneration to their employees.
Employees are those who receive income as payment for their work for an employer.
Who must submit it?
All legal entities, public and private entities, are obligated to make the corresponding withholding when paying their workers’ salaries.
When is it submitted and paid?
Employee withholdings must be submitted and paid no later than the 10th of the month following the declared period.
How to submit the Employee Withholdings Declaration?
It can be submitted virtually or in person, through the website of the Directorate General of Internal Revenue (DGII). Submissions can be made through the virtual office or in person at local offices using Form IR-3.
Complementary Retentions and Remunerations (IR-17):
What is it?
It is the sworn declaration used to submit income tax withholdings made to third parties and any goods, services, or benefits provided by an employer to an employee.
Who must submit it?
All legal entities, public and private entities, and individuals (acting as employers) must submit and pay it.
When is it submitted and paid?
Complementary retentions and remunerations must be submitted and paid no later than the 10th of each month.
How to submit the Employee Withholdings Declaration?
It can be submitted virtually or in person, through the website of the Directorate General of Internal Revenue (DGII). Submissions can be made through the virtual office or in person at local offices using Form IR-17.
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Sample Sworn Income Declaration for the Dominican Republic
1. Fiscal Period:
I declare that this statement corresponds to the fiscal period from [Start Date] to [End Date].
2. Income Received:
During the mentioned period, my income (or the income of the entity I represent) is detailed as follows:
Income from Salaries or Wages:
- Total received in the period: [Amount in Dominican Pesos]
Income from Commercial or Professional Activities:
- Description: [Details of activities]
- Total received in the period: [Amount in Dominican Pesos]
Income from Rents or Leases:
- Description: [Details of rented properties]
- Total received in the period: [Amount in Dominican Pesos]
Income from Investments or Dividends:
- Description: [Details of investments]
- Total received in the period: [Amount in Dominican Pesos]
Other Income:
- Description: [Details of other income sources]
- Total received in the period: [Amount in Dominican Pesos]
3. Applicable Deductions:
The deductions I consider applicable to the declared income are as follows:
- Medical Expenses: [Amount]
- Interest Paid on Mortgage Loans: [Amount]
- Contributions to Pension Funds: [Amount]
- Other Deductible Expenses: [Description and amount]
4. Total Net Income:
The total of my net income (or the entity I represent) for the indicated fiscal period, after applying the corresponding deductions, is [Amount in Dominican Pesos].
