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Dominican Rep

22 January 2021

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Dominican Republic Provides Additional Advance Tax and Asset Tax Relief

The Dominican Republic's Directorate General of Internal Revenue (DGII) has published Resolution No. DDG- AR1-2021-00001, which provides additional tax relief in response to the COVID-19 pandemic.

The relief includes an exemption from monthly advance income tax payments corresponding to the periods January to April 2021 for micro and small businesses, defined as businesses whose income for the 2019 fiscal year did not exceed DOP 58,314,600. Businesses not meeting the income condition may request a total or partial exemption if they have experienced a significant reduction of income in 2020 compared to 2019, and in the months of January to April 2021 compared to the same months in 2020. An exemption from advance payment for January to April 2021 is also provided for certain specified taxpayers in the tourism sector, regardless of the income condition. A list of specified taxpayers is provided as part of the Resolution. Taxpayers in the tourism sector that have not been listed, may still obtain the exemption through a request with the Ministry of Tourism.

The Resolution also provides an exemption from paying the third advance income tax (ISR) payment for individual taxpayers if total income declared in the income tax return (IR-1) for 2019 does not exceed DOP 8.7 million. As with the exemption for businesses, individuals not meeting the income condition may request a total or partial exemption if they have experienced a significant reduction of income in 2020 compared to 2019, and in the months of January to April 2021 as compared to the same months in 2020.

Lastly, the Resolution includes provisions regarding certain deadlines for legal entities with a tax year ending 30 September 2020. This includes that the standard return and payment deadline is maintained on 28 January 2021, but an automatic payment agreement will be provided with two equal and consecutive monthly payments due starting on 28 January. An automatic payment agreement with the same terms is also provided for the first installment of the asset tax (ISA). It is also provided that the standard deadline of 29 March 2021 is maintained for the submission of the Informative Return for Transactions with Related Parties (DIOR) by legal entities with a tax year ending 30 September 2020.

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