Great news for everybody here in the Dominican Republic as with the passing of the Tax Collecting Law No 173-07 the Internal Tax Agency or the DGII will eliminate 17 taxes on Government services, if not more in the future, in addition to also lowering 4 levies in the areas of REAL ESTATE, BUSINESSES and VEHICLE TAX. In a statement to the general public the DGII also said that 23 certification services will now be issued free for anyone applying.Other taxes to go are tax on show tickets, documents, medical certificates, labels for national and imported alcohol, copies of extracts of civil acts and divorces are listed to be removed commencing in August!
The legislation also lowers the tax on real estate property transfers from 4.3% down to 3% and from 3.3% to 2% on vehicle transfers. Great news too for people starting businesses as to form companies normally brought a hefty tax bill, however this too has fallen from 1.83% down to 1% on the agreed capital in the contract or agreement that gives rise to the incorporation. Another similar reduction will also be applied to the taxes to raise company capital.
Another boost is that certain certifications now will be free from taxes they include, Statements of Presentation, Taxes and Exemption Payment, Real Estate Property Tax (just the certificate - you still have to pay the taxes albeit at a lower rate - steady on now!!), Exemption IVSS, Motor Vehicles, Companies, Cheque Refund, Reimbursements and Deposits on Consignment and no-objection of Transfers of Furnishings and Real Estate Deeds.
