HomeReal Estate MarketDGII: Regulations for collecting taxes from digital platforms are well advanced

DGII: Regulations for collecting taxes from digital platforms are very advanced

Digital platforms that would be paying a tax for providing services in the Dominican Republic include Amazon, Google, Netflix, Spotify, DiDi, Uber, Airbnb, and Indriver, among others.

SANTO DOMINGO.– The regulations for applying taxes to digital platforms are “very advanced”, according to the Director General of Internal Taxes (DGII), Luis Valdez.

“We are reaching a consensus on the implementing regulations and this is very advanced, already working with all the digital platforms that do not have a permanent address in the Dominican Republic,” the official said yesterday.

He said he is aware that anything that involves change in the world and breaking paradigms will face resistance, but pointed out that "what we cannot do now is be discouraged and move forward; all changes generate resistance.".

The head of the DGII said that they always try to ensure that changes are within the framework of the law.

"The day I am proven, as director of Internal Revenue, to have acted outside the law, I will leave the position," he stated.

Digital platforms that would be paying a tax for providing services in the Dominican Republic include Amazon, Google, Netflix, Spotify, DiDi, Uber, Airbnb, and Indriver, among others.

Electronic invoicing

According to Valdez, the tax world is heading towards "mandatory general electronic invoicing".

“Our legal framework does not cover these aspects of electronic invoicing, therefore it must be adapted. Gentlemen, we cannot continue to lag behind what is happening in the world,” said the head of the DGII.

He added that today countries like Mexico, Chile and Argentina have 100% of their billing done electronically.

“There are two projects: the electronic invoicing project and the modification of Title I, which will bring what the country needs within the tax administration, which is modernization,” he said.

He revealed that the bill for electronic invoicing is currently with the Legal Counsel of the Executive Branch, from where it should be released next week. "According to what the Legal Counsel of the Executive Branch told us yesterday (Wednesday, June 1st), it will be sent to Congress, and we foresee no major obstacles to the approval of this electronic invoicing bill," he said.

He reported that the DGII has been increasing the number of taxpayers who join by having their own accounting systems, as well as the free invoicing system that the institution has made available to taxpayers who wish to formalize their businesses through it.

“At this time we have 164 taxpayers on a voluntary basis and more than 200 who are in the process of formalization,” he indicated.  

Valdez spoke after participating in the thematic breakfast of the Association of Industries of the Dominican Republic (AIRD), where he pointed out several points to be modified in chapter one of the Tax Code.

Source: Diario Libre

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