News Share

The Tax Hub

Daily Tax Newsletter

Dominican Rep

Responsive image

Dominican Republic Publishes Updated Guidance on Transfer Pricing, Capital Gains Tax, Withholding Tax, and Industrialized Goods and Services Tax

The Dominican Republic’s Directorate General of Internal Revenue (DGII) has published updated guidance on capital gains tax, industrialized goods and services tax, transfer pricing, and withholding tax:

Tax on Capital Gains

This guidance provides an overview of:

  • Capital gains subject to tax, which includes gains from the transfer of assets or rights in the Dominican Republic, including indirect transfers through the transfer of shares in resident or non-resident companies;
  • The capital gains tax rates, which are 27% for non-resident individuals and companies and resident companies, and 25% for resident individuals;
  • The requirements for 1% capital gains tax withholding by sellers in the Dominican Republic; and
  • Other matters, including calculation of gains/losses, filing requirements, etc.

Tax on the Transfer of Industrialized Goods and Services (ITBIS)

This guidance provides an overview of:

  • The general scope of the tax, which is a value added tax;
  • Who is subject to the tax, which includes both resident and non-resident companies;
  • The goods and services that are exempt;
  • The tax rates, which include a standard 18% rate and a reduced 16% rate for certain goods;
  • Tax returns (declarations) and payment, which are required by the 20th of each month in respect of the previous month; and
  • Other aspects of the tax, including withholding requirements in certain cases, related penalties, etc.

Transfer Pricing

This guidance provides an overview of:

  • Who is subject to the transfer pricing requirements;
  • The information and documentation required, including annual declaration (DIOR) and transfer pricing study;
  • The determination of transfer prices, including the comparability factors and selection of comparables, as well as the acceptable methods (standard OECD methods, plus a sixth method for import/export of goods); and
  • Advance pricing agreements, which taxpayers can request and requires submission of supporting documentation.

Withholding Income Tax

This guidance provides an overview of:

  • Withholding agents, including public entities, legal entities, civil associations, and cooperative societies;
  • Taxpayers subject to withholding, including individuals and resident and non-resident entities;
  • Types of income subject to withholding and applicable rates, which for non-resident entities includes a general 10% withholding tax rate on dividend and interest income and a 27% rate on other income;
  • Other aspects of withholding, including settlement procedures, penalties for failing to comply, etc.

For additional guidance on various tax matters (in Spanish), click the following links for the DGII's taxpayer guidelines webpage and tax manuals webpage.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More