SANTO DOMINGO.- The General Directorate of Internal Taxes (DGII) reported that companies that operate as withholding agents for the Tax on Transfers of Industrialized Goods and Services (ITBIS) will not have to apply the withholdings provided for in General Rule No. 02-05 when making payments to other legal entities.
The measure applies provided that the company receiving the payment is authorized by the DGII as an electronic issuer and that the transaction is invoiced through an Electronic Tax Receipt (e-CF), in accordance with current tax regulations.
According to the DGII, companies of any nature established as withholding agents of the ITBIS by General Rule No. 02-05 and its amendments may stop making those withholdings when they make payments to another legal entity.
Therefore, to qualify for this provision, the company receiving the payment must be authorized by the DGII as an electronic issuer and the transaction must be supported by an e-CF.
In this sense, the measure links the treatment of these withholdings with the use of electronic invoicing in transactions between legal entities.
The rule limits the withholdings that are excluded
The DGII specified that the provision applies exclusively to the withholdings established in General Rule No. 02-05 and its amendments.
This means that the new actions do not eliminate or modify the withholdings or collections contemplated in other tax provisions, which will continue to apply where appropriate.
When does this provision come into effect?
Standard No. 02-2026 was issued in Santo Domingo and came into effect on September 16, 2026 , and establishes the application of this provision from the date of its issuance.
With this measure, Internal Revenue establishes a specific treatment for business-to-business transactions in which the supplier uses electronic invoicing and has the corresponding authorization as an electronic issuer.
When does the ITBIS withholding occur?
For further clarification, ITBIS withholding occurs when a company designated as a withholding agent deducts the tax from the amount it must pay to another legal entity for the purchase of goods or the contracting of services. The withheld amount must be reported and subsequently remitted to the General Directorate of Internal Taxes (DGII), in accordance with current tax obligations.
With the new provision, the DGII establishes that this specific withholding will not apply when the company receiving the payment is authorized as an electronic issuer and the transaction is invoiced using an Electronic Tax Receipt (e-CF). The measure does not eliminate the ITBIS (Value Added Tax), but rather exempts these transactions from the withholding established in General Rule No. 02-05 and its amendments.
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