Dominican Republic: Draft rule on appointment of VAT and income tax withholding and collection agents
The Dominican tax authority published a draft General Rule for public consultation
The Dominican tax authority published a draft General Rule for public consultation
The Dominican tax authority (DGII) published a draft General Rule for public consultation, which would replace General Rule No. 8-04, on the appointment of withholding and collection agents for value added tax (VAT) and income tax.
Under the draft rule, the following would be designated as VAT and income tax withholding and collection agents:
- Payment processors
- Payment system administrators
- Payment aggregators
- Other electronic payment entities
In addition, the following VAT withholdings would apply to transactions paid by credit/debit card or any other means of electronic payment:
- 2% of the invoiced amount, when the taxpayer has active status before the DGII
- 18% of the invoiced amount, when the taxpayer has a suspended status, is discharged or has no recurring tax obligations
Finally, the following taxpayers would be excluded from the VAT and income tax withholding and collection, after filing request before the DGII:
- Affiliates that are in an active status in DGII and their main economic activity is the sale of goods and provision of exempt services
- Taxpayers who are electronic tax receipt (e-CF) issuers
Read an August 2023 report [PDF 553 KB] prepared by the KPMG member firm in the Dominican Republic
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