5 February 2019
The Dominican Republic’s Directorate General of Internal Revenue (DGII) has issued guidance on the application of the asset tax. The guidance covers the taxable assets and exclusions, exemptions for certain taxpayers, the asset tax rate, and the tax amount determination and when it should be paid.
The tax is levied at a rate of 1% on the value of assets appearing in the balance sheet, not adjusted by inflation, and after applying depreciation, amortization, and reserves for uncollectable accounts (bad debts). The amount of asset tax due depends on the amount of income tax due. If the asset tax amount exceeds the income tax due, the difference must be paid. If the income tax amount is equal to or exceeds the asset tax amount, no asset tax is due. When due, the asset tax must be paid in two installments, with the first installment due by the deadline for the payment of income tax and the second installment due six months later.
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