SANTO DOMINGO.– The Property Tax (IPI) and digital platforms are among the areas excluded from the package of measures presented to the country this Thursday by the Government, which seek to reduce the impact of the international crisis and boost the Dominican economy.
The IPI is an annual tax levied on individuals and trusts. For individuals, a rate of 1% is applied to the excess value (currently RD$10,695,494.00) of the taxable assets, while for trusts, the rate is 1% of the total value.
In the case of digital platforms, last May of this year, Pedro Urrutia, director of the DGII, announced that the new draft for collecting taxes on digital services would be ready in 60 days.
The project, presented this Thursday to media directors by the Ministry of Finance and Economy, aims to raise between RD$40 and RD$50 billion.
The document specifies that these collections will be made taking into account that it does not affect the ITBIS (neither the rate nor the base), nor most of the selective taxes: fuels, vehicles, alcohols, cigarettes, insurance, telecommunications.
"It does not affect the IPI rates or the minimum exemption, the increase in the ISR rate would not affect SMEs," emphasizes the project that will be sent next week to the National Congress for its review and approval.
Another aspect mentioned in the package that will not be touched is the rates of taxes on interest or dividends, taxes on digital platforms , and that some taxes will be eliminated/reduced.
Project aspects
The Dominican Republic government presented a package of measures on Thursday, projecting revenues of between RD$40 billion and RD$50 billion, equivalent to about 0.5% of the Gross Domestic Product, to alleviate the impact of the international crisis.
“The Government has no liquidity problem,” declared Magin Díaz, Minister of Finance and Economy, detailing the actions, which he specified will be sent next week to the National Congress for the legislators' knowledge and consideration.
He indicated that in the first week of June fuel subsidies will reach RD$20 billion and that by the end of the year the projection will exceed RD$50 billion, resources that were not budgeted.
Among the proposed measures are a general accelerated depreciation for all companies, the elimination of the 2% mortgage tax ,the immediate elimination of the 1% company formation tax, and the elimination of the advance payment for micro-enterprises.
It also contemplates formalizing payment agreements in the Tax Code, establishing a tax debt amnesty until December, and reducing the income tax on profits from the sale of real estate for individuals from 25% to 20%.
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