Complying with fiscal standards and regulations is essential for the proper functioning of businesses and taxpayers. This includes meeting requirements such as registration and obtaining necessary licenses, as well as fulfilling corresponding tax obligations.
Regulations in the Dominican Republic
The Dominican Republic’s tax system is comprised of various laws and regulations that outline the procedures and requirements for fulfilling tax obligations.
These regulations are frequently updated to adapt to changes in the economic environment and to align with international standards.
Main Fiscal Regulations:
- Customs Law 168-2: This law updates customs legislation to comply with international standards.
- Law No. 11-92: This law approves the Tax Code in the Dominican Republic.
It is crucial for taxpayers and businesses to be aware of current tax regulations, as non-compliance can result in penalties and fines.
What are Fiscal Standards and Why are They Important?
Fiscal standards are a set of international guidelines and norms aimed at ensuring transparency, equity, and efficiency in the fiscal domain.
Main International Fiscal Standards
There are various internationally recognized fiscal standards. Among the most prominent are:
- Common Reporting Standard (CRS): This standard aims to combat tax evasion and capital concealment through the automatic exchange of financial information between different jurisdictions.
- International Financial Reporting Standards (IFRS): These standards establish international accounting principles, seeking uniformity and transparency in financial reporting.
- OECD Transfer Pricing Guidelines: These guidelines aim to prevent profit shifting among related companies by establishing principles for determining the transfer prices of goods and services.
Tax Obligations for Businesses
Businesses in the Dominican Republic must comply with various tax obligations. Some of the most relevant are:
- Payment of Taxes: Businesses must pay taxes such as Income Tax (ISR), Tax on the Transfer of Industrialized Goods and Services (ITBIS), and Corporate Tax.
- Maintaining Accounting Records: Proper accounting records must be kept, documenting all financial transactions according to established accounting principles and legal requirements.
- Filing Tax Returns: Businesses are required to file periodic tax returns, such as the Income Tax Return and the ITBIS Return and Report.
Processes for Complying with Fiscal Regulations in the Dominican Republic
To comply with fiscal regulations in the Dominican Republic, several processes must be carried out to ensure the proper fulfillment of tax obligations:
- Tax Declaration and Payment: Taxpayers are required to file periodic declarations detailing their income and expenses related to their economic activity. They must also calculate and pay the corresponding taxes according to current regulations.
- Deadlines and Conditions for Filing Tax Returns: Taxpayers must file their tax returns within the deadlines established by the General Directorate of Internal Taxes (DGII). These deadlines vary depending on the type of tax and the tax regime to which the taxpayer is subject.
- Control and Fiscal Audit Procedures: The tax administration conducts control and audit procedures to verify compliance with tax obligations. These procedures may include reviews of accounting documents, verification of commercial transactions, and consultations on the correct application of tax regulations.
Additionally, understanding tax exemptions and benefits in the Dominican Republic, as well as avoiding penalties for non-compliance, can be beneficial.
At Contadores Dominicanos, we assist your business in complying with the filing of taxes and established declarations.
