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11 October 2021

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.

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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

Document ID: 2021-6039

 
 

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