The informative declaration of transactions between related parties

The informative declaration of transactions between related parties

Comparte esta noticia

Share on linkedin
Share on facebook
Share on whatsapp
Share on twitter
Share on email

The transfer pricing regime in the Dominican Republic is regulated in Articles 281, 281 bis, 281 ter and 281 quater of the Tax Code of such country, as amended by Law No. 253-12, as well as in Regulation 78-14 or also called “Transfer Pricing Regulation”, published in 2014.

These regulations regulate various aspects of transfer pricing, such as the formal obligations in such matter. The purpose of this article is to briefly explain the main aspects of the Informative Declaration of Transactions between Related Parties (DIOR).

What is the Informative Declaration of Related Transactions?

Also known as DIOR, by its acronym, it is the informative declaration established in the Dominican Republic for operations between related parties, which must be filed before the General Directorate of Internal Taxes (DGII), in accordance with the provisions of Article 281 ter of the Tax Code.

Who are the taxpayers obliged to file the DIOR?

The taxpayers subject to the filing of the tax return are those who have carried out operations with the following:

  • Resident or foreign related parties.
  • Individuals, companies or corporation’s resident or domiciled in jurisdictions with preferential tax regimes, low or no taxation or tax havens.

What is the content of the declaration?

According to paragraph II of Article 18 of the Regulation, the DIOR must contain information on the taxpayer, such as identification of the taxpayer, identification of the related party, details of the operations carried out with each related party and the valuation method and range of prices or margins.

What is the form and term of the DIOR?

The term of such declaration will be up to 180 days after the tax closing under analysis. Regarding the form, the taxpayer must enter the DGII web page and select the option “Tax Obligations” and click on the option “Transfer Pricing“, this will download the form in order to complete it. Finally, the form must be uploaded to the Virtual Office.

Is there a penalty for non-compliance with the declaration?

In case of non-compliance with the transfer pricing obligations, in terms of the established term or when false data is provided, a violation of the formal duties will be incurred and will be sanctioned according to the fines indicated in article 257 of the mentioned Code.

This last article establishes a fine of 5 to 30 minimum wages.

Noticias Relacionadas

New Undercapitalization Rules
Taxes

New Undercapitalization Rules

Thin capitalization rules are rules that limit the deductibility of interest expenses for income tax purposes and apply in a supplementary manner to the well-known

LEER NOTICIA »

How can we help you?

    To communicate with us you need to fill out the following form

    I have read and agree the privacy policy