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Dominican Republic

21 October 2021

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Dominican Republic Publishes Final General Standard on CbC Reporting

The Dominican Republic's Directorate General of Internal Revenue (DGII) has published General Standard (Norm) No. 08-2021 on Country-by-Country (CbC) reporting, which is dated 5 October 2021. The final general standard is largely in with the draft consulted on earlier in the year.

The requirement to submit a CbC report was introduced in the Dominican Republic by Decree No. 256-21 of 20 April 2021 with effect from the 2022 reporting fiscal year, although the specific rules for the application of the requirement were not provided in that Decree. The specifics are provided by the general standard, including the following key points:

  • The CbC reporting requirement applies for MNE groups meeting a consolidated group revenue threshold of DOP 38.8 billion in the previous fiscal year;
  • The primary CbC report filing requirement applies for ultimate parent entities of MNE group resident in the Dominican Republic, with the report due no later than 12 months after the last day of the reporting fiscal year;
  • A secondary local filing requirement applies for non-parent constituent entities resident in the Dominican Republic, with the report due no later than 12 months after the last day of the reporting fiscal year if any of the following conditions are met:
    • the ultimate parent entity of the MNE group is not required to file a CbC report in its jurisdiction of residence;
    • the ultimate parent's jurisdiction of residence has an in-force international agreement for exchange of information to which the Dominican Republic is a party, but does not have a qualifying competent authority agreement for the exchange of CbC reports in force with the Dominican Republic for the reporting fiscal year; or
    • there has been a systemic failure for exchange by the ultimate parent's jurisdiction of residence and this has been notified by the DGII to the constituent entity;
  • Where multiple constituent entities would be subject to the secondary local filing requirement, one may be designated to fulfill the requirement, and this must be notified to the DGII;
  • The secondary local filing requirements will not apply if a CbC report has been filed by a surrogate parent entity in another jurisdiction, this is notified to the DGII, and certain other requirements are met, including that the report will be exchanged with the Dominican Republic; and
  • All group members resident in the Dominican Republic must submit a notification by the last day of the reporting fiscal year, including information on whether the entity is the ultimate or surrogate parent entity or, if neither, information on the identity and country of residence of the reporting entity:
    • for ultimate or surrogate parent entities, the notification is due by the last day of the reporting fiscal year; and
    • for non-parent constituent entities, the notification is due no later than three months before the end of the reporting fiscal year.

The general standard also provides templates for the CbC report, including the three standard tables in line with OECD guidelines, along with instructions. Lastly, it is provided that the DGII will establish the format for the submission of the CbC report, as well as the method of submission.

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