Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

October 11, 2021
2021-6039

General Directorate of Internal Taxes of Dominican Republic establishes payment programs for unpaid tax liabilities

Taxpayers will be able to benefit from the payment programs, which include discounts on surcharges imposed on tax debts from previous tax years.

On 21 September 2021, the General Directorate of Internal Taxes of the Dominican Republic issued Notice No. 14, establishing payment programs to encourage taxpayers to declare and pay their tax liabilities. The new payment programs began 1 October 2021.

The Notice’s provisions apply to all taxpayers and all tax debt for the periods indicated, regardless of the type of tax.

Payment program for tax liabilities for 2017 and prior years

Notice No. 14 will discount the amount of surcharges imposed on tax liabilities for 2017 and prior tax years. All interest, however, must be paid. Under this program, taxpayers may choose one of the following three payment options: (1) a one-time payment with a 100% discount on surcharges, (2) a payment agreement with up to six installments and a 60% discount on surcharges, or (3) a payment agreement with up to 12 installments and a 40% discount on surcharges.

Payment program for tax liabilities from 2018 to 2020

The Notice discounts the surcharges for tax liabilities incurred from 2018 to 2020. Like the program available for 2017 and prior tax years, taxpayers may choose from the following payment options: (1) a one-time payment and a 60% discount on surcharges, (2) a payment agreement with up to six installments and a 40% discount on surcharges, or (3) a payment agreement with up to 12 installments and a 30% discount on surcharges. If the taxpayer breached any payment agreement signed during 2020 and thereafter, the taxpayer may only benefit by making a one-time payment.

Requirements for making installment payments

To qualify for the installment payment plan options, taxpayers must not have:

  1. Used (i) allegedly fraudulent official tax receipt numbers (NCF), that do not support real operations, (ii) irregular NCFs or (iii) NCFs not previously authorized
  2. An open case under investigation in the Management of Investigation of Fraud and Tax Crimes or an inspection or judicial procedure in progress that has consequences for the investigation in the Management of Investigation of Fraud and Tax Crimes

Non-payment

If a taxpayer fails to make three installment payments, the agreement will terminate and the Tax Administration may initiate the collection process established in the Tax Code. Taxpayers also will lose the surcharge discounts. Any installments paid by taxpayers will be credited to the total debt, which includes surcharges and interest, penalties and tax.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young, Dominican Republic

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young Abogados, Latin America Business Center, Madrid

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct