SANTO DOMINGO – David Collado, Minister of Tourism, who has repeatedly referred to the need to regulate short-term rental services in the Dominican Republic, stated yesterday that the signing of an agreement for this step remains delayed due to the lack of a tax proposal from the General Directorate of Internal Taxes (DGII).
In July 2022, the head of the 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.
Yesterday, Tuesday, Collado assured that the part of the agreement that the institution he directs is responsible for working on is completed and has been agreed upon with the executives of the multinational and the private sector.
"The regulation of Airbnb by the Ministry of Tourism is a matter of safety and security, ensuring that what is offered to tourists is actually there. And that, if any problems arise, just as we inspect hotels, we can also inspect Airbnb," Collado told Diario Libre after the presentation of the monthly results for the tourism sector, held in Punta Cana.
The official explained that it was the private sector, represented by the National Association of Hotels and Tourism of the Dominican Republic (Asonahores), that asked the institution he leads to postpone the signing of the agreement, which had finally been scheduled for last February, until the DGII prepares the plan, which must define how the multinational would be taxed for the short-term rental services it offers in the country.
"We firmly believe in working by consensus. Everything is 'on the books,' they are in agreement. What we do is oversee the service and the treatment, and Asonahores asked us to give them time to reach an agreement with the Internal Revenue Service on that part," he said.
They don't know the date
Neither Collado nor the president of Asonahores, David Llibre, know when the tax plan that Internal Revenue must prepare to finalize the agreement will be ready.
Llibre indicated that "a resolution has been reviewed and pre-agreed upon" with the Ministry of Tourism. "We are waiting for the government to make its plan public on this matter.".
The study "Results of Dominican Tourism," by Banco Popular and Asonahores, maintains that the average growth rate of rental properties in the country over the last five years was 23%. The largest year-on-year growth occurred during 2021-2022, with a 44.9% increase.
Of the properties designated for these purposes, 26.7% are apartments, 23.4% are villas, and 16.4% are condominiums, according to the study, which used data from AirDNA as its source.
With information from Diario Libre.
