What is the monthly tax return? When should it be done? Who must file it? What is IR17? What is IT-1? What is IR-3?
In this article, we cover the important aspects of the monthly tax return in the Dominican Republic.
What is a Tax Return?
According to the General Directorate of Internal Taxes (DGII), a tax return is defined as:
A declaration of income is a document in which, under oath, the taxpayer reports the goods and/or services provided under their economic activity for a specific period.
It is a document through which taxpayers declare their income obtained from rents, fees, benefits, or any other activity.
If you need help or advice on filing these monthly returns, at Contadores Dominicanos, we are ready to provide the assistance you need so you don’t have to worry about paperwork and can focus on your business.
Who Must File the Monthly Tax Return?
It is important to note that there are several types of monthly declarations, and their filing depends on whether the person is an individual or a legal entity and the type of economic activity they have.
These obligations must be filed by all legal entities and individuals who receive income from salaries, investments, benefits, financial gains, or rental of assets, among other sources.
Obligations for Legal Entities:
| Tax | Form | Filing Deadline |
| ITBIS Tax Return | IT-1 | By the 20th of each month |
| Employee Withholding Declaration | IR-3 | By the 10th of each month |
| Complementary Withholdings and Benefits | IR-17 | By the 10th of each month |
| Format for Purchases of Goods and Services | Format 606 | By the 15th of each month |
| Format for Sales of Goods and Services | Format 607 | By the 15th of each month |
| Format for Canceled Receipts | Format 608 | By the 15th of each month |
Obligations for Individuals:
Individuals must also file:
- Employee Withholding Declaration IR-3 (if they have employees).
- Monthly Tax Return for the Transfer of Industrialized Goods IT-1 (ITBIS) (if the economic activity is subject to this tax).
- Monthly Tax Return for Other Withholdings and Complementary Benefits IR-17.
When Should Monthly Tax Returns Be Filed?
They should be filed by the deadlines mentioned above, for both individuals and legal entities.
They are filed monthly, and in some cases, it may be necessary to supplement them with the corresponding annexes based on the information submitted.
For ITBIS tax returns, the annex is mandatory only for taxpayers whose activity falls within the hotel sector.
How to File Monthly Tax Returns?
To file any monthly tax return, whether for a legal entity or individual, it is important to note that each one has a different format.
To find out the format to be filed and the filing steps, visit the General Directorate of Internal Taxes (DGII) website in the section for individual tax returns or the section for legal entity tax returns, depending on your case.
FAQ
What is IR 17?
It is the Monthly Tax Return for Other Withholdings and Complementary Benefits, applicable to both individuals and legal entities.
What is IR 3?
It is the Employee Withholding Declaration, applicable to both individuals and legal entities (if they have employees).
What is IT 1?
It is the Monthly Tax Return for the Transfer of Industrialized Goods (ITBIS), which must be filed if the economic activity is subject to this tax.
How to Complete Form 606?
- Download the Format: The Form 606 can be downloaded from the DGII website in its most recent version.
- Complete Taxpayer Data: Fill in the basic information of the company submitting the form, such as RNC, company name, and the fiscal period being reported.
- Fill in Information for Each Purchase: For each purchase made during the month, complete the fields described (NCF, supplier RNC, type of goods or services, date, invoiced amount, ITBIS, etc.). Ensure that all data matches the information provided in the invoices.
- Review and Validate: Before submitting the form, ensure all information is correct and complete. Any errors may result in tax issues or the need to correct the form.
- Submit the Format: The Form 606 must be submitted electronically through the DGII portal. Log in to your account on the DGII website and upload the form file.
- Save the Submission Receipt: Once submitted, save the submission receipt and the Form 606 file for future reference.
