The Dominican Republic – Transfer Prices in The Dominican Republic, regulations and formal obligations demanded by the DGII.
Since 06 March 2014, the Dominican taxpayers are obliged to declare and value their operations with national and foreign related parties and/or with those companies protected by Special Règime that have fiscal benefits and/or are located in territories considered as Tax Heavens, through the Informative Statement of Operations between Related parties (DIOR), in accordance with what is established in the Article 18 paragraph IV of the Decree 78-14, published by the Tax Administration – DGII (Dirección General de Impuestos Internos) (General Direction of Internal Taxes).
The taxpayers reached by the transfer price legislation in the Dominican Republic are the natural or legal people or entities resident that perform operations with:
1. Related Parties abroad
2. Related Parties resident
3. Natural People, companies or partnership business resident or domiciled, constituted or located in States or territories with preferential fiscal règime, of low or non-taxation or tax heavens, being or not these last ones , resident.
At the same time, it is established that the taxpayers who will not have the obligation of documentation and presentation of the Informative Statement, are the ones whose operations are not higher than RD?10.000.000 (US$ 220.000 approx.) in total, as well as the ones who perform operations with related parties resident, for the operations performed with them exclusively, as long as the agreed value between the parties does not result in a minor taxation in the country or in a different imposition.
It is important to mention that the Tax Administration has the power to establish a fine for the responsible taxpayers’ unfulfillment of the duties and obligations up to 25% of the adjusted amount, plus interest on arrears that ranges from 2.5% to 5% monthly.
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