SANTO DOMINGO – David Collado, Minister of Tourism of the Dominican Republic, announced that the pending regulations to strengthen the use of short-stay platforms in the country will be included in the fiscal package that the Government is expected to announce soon.
According to a publication in the newspaper Hoy, both the tax regulations and those that Collado has stated the Ministry of Tourism (Mitur) has ready, to guarantee the safety of visitors to the country who use that type of accommodation, would be specified within the tax reform that the new government period of President Luis Abinader will present.
Collado, who was asked about the issue again, specified that there is already a pre-signed agreement regarding regulation from the tourism sector, but explained that there is a regulatory part that corresponds to the oversight authorities, which would be presented in the tax reform.
“The Government’s Economic Cabinet prefers to do everything together when it comes to tax reform,” he noted.
He said that this is why the regulatory part of the tourism sector has not yet come into effect, because it is preferred that "everything be released at once".
Laps since 2022
On at least four previous occasions, the Minister of Tourism, David Collado, has announced a date or referred to the need for the Dominican Republic to regulate short-term rental services, a request that has been demanded for several years by businessmen linked to the tourism sector.
The latest announcement on the subject was made by the official during the International Tourism Fair (Fitur) 2024, where Collado announced that an agreement with Airbnb, the world's most popular short-stay rental platform, will be signed in February 2024 to regulate its operations in Dominican territory.
He clarified, however, that the agreement would exclude the tax component and focus on security measures and quality inspections, in order to ensure that tourists are not exploited within rented properties and that the country's brand is protected. "Just like we regulate hotels in the country," Collado explained.
David Llibre, president of Asonahores, expressed in April of last year the interest in regulating the platforms that facilitate the supply of properties for short-term rental accommodation to tourists and individuals in the country, such as the Airbnb model.
In July 2022, the head of the General Directorate of Internal Taxes (DGII), Luis Valdez, said that the application of the tax on digital platforms was intended to gradually collect three billion pesos, including all services provided by Amazon, Expedia, Google, Netflix, Spotify, DiDi, Uber, Airbnb.
He added that the implementation of these taxes "is not intended to burden consumers," and that for this reason the draft regulations are being discussed and agreed upon before their approval.
