By Gissel Taveras
El Inmobiliario
SANTO DOMINGO.- The emergence of the Covid-19 pandemic in the country halted a tax reform that was proposed for 2021. Three years later, and with the health crisis now over, and its imminent implementation in this new government term, uncertainty has once again surfaced.
The various economic sectors are waiting to see what happens, especially since the information has been kept secret, and although President Luis Abinader has indicated that there will be reform, it is still not known for sure which markets will be affected.
What is certain is that the new package will have a substantial modification in the Tax on the Transfer of Industrialized Goods and Services (ITBIS), in addition, there was talk of applying a gradual reduction to the tax from 18% to 17% and then setting it at 16%.
Regarding digital media, the opposite will happen; an increase in the tax is expected, although the percentages have not been officially announced.
In that regard, Cristal Acevedo, president of the Digital Media Observatory, explained that regulating platforms in the Dominican Republic will only benefit the government because it will allow it to collect more money from users who pay for those services.
“If the Government includes in the tax reform the penalty or payment of tax to these digital platforms, they are not going to take that money from their profits, but in the end we Dominicans will also end up having to pay to use these services of companies that do not even operate in the country.”.
He stated that in many cases, consumers choose to use a platform precisely because that service is much cheaper than some services offered in the country.
“If these platforms are also burdened with taxes, they will increase their cost to the user, and in the end, those who will suffer are precisely the people who continue to pay high tax rates without receiving any benefit from the government.”.
He also said that he agrees with new taxes, as long as that tax burden comes from the profits of companies; otherwise, "I do not agree if that payment comes from the citizen's pocket, because it would affect their personal finances.".
Meanwhile, the head of the General Directorate of Internal Taxes (DGII), Luis Valdez, said that the application of the tax to digital platforms was intended to gradually collect three billion pesos, including all services provided by Amazon, Expedia, Google, Netflix, Spotify, DiDi, Uber, and 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.
David Collado referred to the country's need to regulate short-term rental services, a request that business owners linked to the tourism sector have been making for several years.
During the International Tourism Fair (Fitur) 2024, Collado announced that an agreement will be signed in February 2024 with Airbnb, the world's most popular short-stay rental platform, to regulate its operations in Dominican territory.
