28
May

Currently, information is just one click away. The Dominican Republic has been one of the fastest countries in adapting to this change in how we access information. We have also understood the significance of streamlining transactions, many tax services and others (the vast majority of which can be performed online), as well as the importance of data entry.We will expand this topic with this article, however, we will be focusing on the duties and responsibilities of any registered company operating in Dominican Republic, such as:

• Presentation and payment of taxes in the Dominican Republic.
• Responsibility of inclusion and payment of the TSS (Social Security Treasury), to all employees of your company.

It does not matter what type of Company you have, to find out about the different company types, you can click here.

Companies registered in the Dominican Republic are required to use two (2) digital platforms, these platforms are:

1- The DGII (General Directorate of Internal Taxes) in which tax accounting is presented and tax duties of the company are paid.See Tax Duties of Registered Companies in the DominicanRepublic

2- The TSS (Social Security Treasury), which is a dependent body of the National Social Security Council (both created by Law 87-01), and whose main purpose is to manage the SUIR software efficiently to guarantee the universal registration of the beneficiaries of the Dominican Social Security System (SDSS). Other objectives are collecting and distributing contributions with transparency and fairness, in which the permanent employees of the company are registered and a contribution is paid per registered employee monthly.

The DGII (General Directorate of Internal Taxes)

1. The main taxes in the Dominican Republic, can be seen here, and the presentations that companies must present to date are the following:

1.1 MONTHLY PRESENTATIONS

Taxes must be presented and paid no later than the 20th of each month:

• 606 (Purchases of Goods and Services)
• 607 (Sale of Goods and services)
• IR-3 (Income tax withholding to employees)
• IR-17 (Withholding and complementary remuneration)
• IT-1 (Tax on transfers of industrialized goods and services)

1.2 ANNUAL PRESENTATIONS

Companies with monthly closing as of December 31st, must be presented and paid no later than March 30th. Other closings allowed by the tax legislation consist of the following:

• Annual Affidavit (IR-2) Income Tax
• Tax Settlement
• Taxable Assets

The TSS (Social Security Treasury)

2. When it comes to the TSS, the contribution to be paid by the company or employer will depend on the salary of its employees, the percentage established is as follows:

TSS

• FAMILY HEALTH INSURANCE :                                            

Employer   7.09 %     Worker     3.04%

• OLD AGE, DISABILITY AND SURVIVAL INSURANCE:

Employer   7.10%       Worker    2.87%

• Employer Hazard Insurance 

Fixed fee of 1% plus a variable percentage of 0.10‐0.30, depending on the company’s risk factor, the company covers 100%.

        2.4 INFOTEP

It is an autonomous Training Institute of the Dominican Republic, in charge of the professional and technical training in the country. With the contribution of companies, their employees can be trained at a technical level at no cost.

The contribution is 1% of the monthly wages paid by for-profit companies, and 0.5 percent deducted from the annual earnings employees receive from the company.

TAX NON-COMPLIANCE

Depending on the severity of the case, the penalties applicable to tax offenses have different degrees, ranging from; blocking of tax receipts, fees, interest / arrears and other pecuniary penalties. Other penalties include cancellation of license, permits, closure of establishments and deprivation of liberty. If you would like more information you can access this link.

In our Morillo Suriel – Attorneys at Law firm, we have a division specialized in Tax Law. Through that division, we can assist you with any questions or concerns you may have regarding taxation in the Dominican Republic.