In February 2020, the Law of Transparency and Asset Revaluation of the Dominican Republic was enacted, which allows individuals and companies to update the value of their assets, or even declare pending assets, with a reduced tax cost.
Despite the fact that the law dates back to the beginning of the year, it was not until last July that the process to follow to benefit from its provisions was defined, through the promulgation of rule 04-20 by the General Directorate of Taxes Internal (DGII).
Recently, the media shared a very interesting question and answer session that we detail below:
Why was this law approved urgently by the Chamber of Deputies?
The law had already been discussed for more than a year and a half in Congress, and it was agreed with different sectors of the national economy who were awaiting its enactment.
Who benefits from the Law of Transparency and Asset Revaluation?
To all taxpayers natural persons, legal entities and undivided estates who wish to regularize their tax debts, make transparent or revalue assets or rights (chapter I, art. 2).
It would allow those small merchants to formalize their commercial activity and avoid sanctions by the different obliged subjects when acquiring goods and services (dealers, banks, real estate, among others) and in addition, a bankarization of resources that are currently found in the informal sector or abroad, which would contribute to economic and exchange rate stability.
What sectors were demanding the enactment of the law?
All those who promote legal certainty and those who fear that the drasticity of the laundering law will affect those who have incurred in tax non-compliance due to lack of knowledge, so that only those who do so deliberately are objects of sanction.
How many times has the DGII applied an amnesty like this?
First, clarify that this is not one of the amnesty law, since it does not prevent audits by the tax administration, and it does not prevent a person, even having availed themselves of the facilities herein, from being subjected for the violation of other laws ( money laundering, public function, others).
For more information, at QA Legal we can help and guide you in each part of the process. Contact us in the way of your preference and we will gladly assist you.