Dominican Republic: Proposed changes to withholding tax in livestock sector, guidance on capital returns by trusts and transfers of real estate

Proposals and guidance from the Directorate General of Internal Revenue

Recent tax-related proposals and guidance concern withholding tax in the livestock sector, capital returns by trusts, and transfers of real estate.

The Directorate General of Internal Revenue (DGII) has proposed a 1% withholding tax on gross payments from corporate entities to individuals in the livestock sector, aimed at simplifying sales procedures. Stakeholders can submit feedback on the draft rule until February 11, 2025.
The DGII in November 2024 clarified the tax implications of capital returns made by trusts to a grantor. It explored four scenarios involving property and cash returns and additional profits.
The DGII outlined the procedure for transferring real estate through various legal actions, such as sales, exchanges, gifting, and expropriation. With property transfers often implicating a taxable event, the DGII detailed the reporting method and discharge of real estate to ensure only the buyer pays tax. The guidance further explains the forms' details, interested parties' formalities, the scope of discharge requests, exceptions, and other administrative matters.

For more information, contact a KPMG tax professional in the Dominican Republic:

José Manuel Romero | joseromero1@kpmg.com

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Dominican Republic: Proposed changes to withholding tax in livestock sector, guidance on capital returns by trusts and transfers of real estate

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