Tax Descriptions Dom Rep

Description of the most important taxes in Dominican Republic (as of 2011)

1. Impuesto sobre las Transferencias de Bienes Industrializados y Servicios (ITBIS):
Description: Value Added Tax.Tax rate: 16%
Comments: There are various exceptions to the ITBIS:
a. Financial Services: Only for services provided by financially regulated entities.
b. Educational Services: Onlyfor services provided by non-lucrative organizations.
c. Transportation services: For terrestrial services inside the national territory and the service must be provided by a firm which onlyoffers transportation services and other exempted related activities and pays Income taxes in the Dominican Republic.
Furthermore, cargo transportation for exports, both by air and by water, is exempted.d. Health Services: All health services, including health insurance.
e. Electric Services: All electric services provided by firms regulated by the Superintendent of Electricity.f. Water provision and Waste disposal services: Only if provided by the government or by entities controlled by the government.
g. Services provided internationally by internationalcompanies: the customer of the services cannot have any companies, goods, rights properties or activities in the Dominican Republic.

Furthermore, there are certain companies that receive a preferentialtreatment with regards to the ITBIS. These companies are either exempted or only pay if certain conditions are met. The companies must be classified under one of the following categories:
h. Miningi. Refineries
j. Free Zones

2. Taxes on Income:
Description: Tax imposed on rents, income, utility or benefits obtained by Physical Persons, Societies or “Undivided State”.
Taxrates:
a. Juridical Persons: 25%

b. Natural Persons: (For income related to wages)
Annual Income Scale | Rate |
Up to RD$371,124.00 | Exempted |
From RD$371,124.00 to RD$556,685.00...