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31 August 2022

Dominican Republic issues notice on the country-by-country report submission threshold

  • The threshold for filing the country-by-country (CbC) report is consolidated group revenue of 750 million euros or the equivalent in national currency.
  • Taxpayers required to submit the CbC report should determine what documentation is needed to prepare the report.

The Dominican tax authority issued Notice 18-22 (Notice), clarifying the threshold at which taxpayers must submit the country-by-country (CbC) report.

Background

In October 2018, the Dominican Republic joined the Inclusive Framework of the Project against Base Erosion and Profit Shifting (BEPS) of the Organization for Economic Co-operation and Development (OECD).  The Dominican Republic is thus committed to adopting the minimum BEPS standards for tax transparency, one of them being the implementation of Action 13 (Master File, Local File and CbC Report).

Main implications

Regarding the CbC report threshold amount in local currency, the filing requirement in the Dominican Republic will follow the “Guidelines for the preparation and submission of the Country-by-Country Report” contained in Action 13 BEPS, issued by the OECD.

The Notice establishes that the threshold for submitting the CbC report is 750 million euros or a near equivalent amount in the national currency, according to the exchange rate in January 2015. “Provided that the jurisdiction of the ultimate parent entity has implemented a reporting threshold that is near equivalent of EUR 750 million in domestic currency as it was [in] January 2015, [a multinational enterprise] [g]roup that complies with the local threshold should not be exposed to local filing in any other jurisdiction that is using a threshold denominated in a different currency.”

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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 LLP (United Kingdom), Latin American Business Center, London

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

Document ID: 2022-5830

 
 

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