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Dominican Republic Consulting on General Standard for CbC Reporting Requirement — Orbitax Tax News & Alerts

The Dominican Republic's Directorate General of Internal Revenue (DGII) has announced a public consultation on a draft general standard for Country-by-Country (CbC) reporting. Comments are due by 7 September 2021.

The requirement to submit a CbC report was introduced by Decree No. 256-21 of 20 April 2021 with effect from 2022, although specific rules for the application of the requirement were not provided in the Decree. The specifics are provided by the draft 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;
  • The secondary local filing requirements will not apply if a CbC report has been filed by a surrogate parent entity in another jurisdiction and certain 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.

The draft general standard also provides templates for the CbC report, including the three standard tables in line with OECD guidelines. Lastly, it is provided that the DGII will establish the format and channels for submitting the CbC report.