What is an annual tax return? When should it be filed? Who is required to file it? How do you file a tax return in the Dominican Republic? How do you complete an annual tax return?
In this article, we will cover important aspects to consider regarding the annual tax return IR-2 and annual tax return IR-1 in the Dominican Republic.
What Is IR-2 – Annual Tax Return for Legal Entities or Corporations?
According to the General Directorate of Internal Taxes (DGII), the annual tax return is defined as follows:
An annual tax return is a document in the form of a printed or electronic form, where taxpayers declare their income or profits from activities, providing evidence of the goods and services provided by their economic activities, as well as their assets at the close of the fiscal year.
Thus, an annual tax return is a document through which taxpayers declare their income earned from Dominican sources, fees, benefits, or any activity in a given fiscal period.
What Is IR-1 – Annual Tax Return for Individuals?
According to the General Directorate of Internal Taxes (DGII), IR-1 is the annual asset tax return that individuals who earn income must file, whether from salaries, investments, or financial gains abroad, rental income, businesses, sales of movable or immovable property, services provided, general loans, among others.
Who Is Required to File the Annual Tax Return?
Legal entities, regardless of their economic activity, and individuals who receive income from salaries, investments, benefits, financial gains, or rental income, among others, must file the annual tax return with the DGII.
If you need help or advice for filing your tax return in the Dominican Republic, at Contadores Dominicanos, we are ready to provide the assistance you need, so you won’t have to worry about the paperwork and can focus on your business.
Obligations That Legal Entities and Individuals Must File:
- Annual Income Tax Return: A declaration used to settle the income tax (ISR) of legal entities. Individuals must submit the IR-1 form along with its annex (IR-A).
- Annual Asset Tax Return: A declaration used to settle the tax on the assets or properties of legal entities or individuals.
- Annual ITBIS Return: A declaration used to settle the tax on the transfer and importation of industrialized goods and services (ITBIS).
- Annual Employee Withholding Tax Return: A declaration used to report the income tax withholdings from employees. In the case of individuals, they must submit the monthly return if they have employees.
- Annual Return for Other Withholdings and Supplementary Payments: Used to report the income tax withholdings made to third parties for any service or good.
When Should the Annual Tax Return Be Filed?
The IR-2 annual income tax return for corporations must be filed before the deadline, which may vary depending on the date, but it must be filed no later than 120 days after the registered closing date of the corporation.
How Do You Complete the Annual Tax Return?
To file any annual tax return, whether for legal entities or individuals, it is important to note that each return has a different format.
To learn about the format that needs to be submitted and the filing steps, you should visit the General Directorate of Internal Taxes (DGII) website in the tax returns section, where you can find the steps and requirements for filing in a very detailed and clear manner.
We have highly qualified professionals and advisors. Visit our website and learn about our services.
If you have a company or corporation in the Dominican Republic, you should also know how to file the Annual Income Tax Return as well as the Annual Asset Tax Return.
