Tax System – This year the director of the DGII revealed that regulations that will tax digital platforms will be ready

Tax Administration advanced a Regulating the application of taxes on digital platformsWhich will be implemented this year, revealed the Director General of Internal Taxation, Luis Valdez Ferras.

Valdez spoke at Torre Empresarial, after introducing the first chapter of the 2022 tax code at an Industry Association (AIRD) thematic breakfast.

He clarified that this is not a bill but rather The application list is agreed upon To tax digital platforms, because the tax code doesn’t think about that tax and that’s why it doesn’t have to go to Congress.

It’s very advanced, and we work with all digital platforms that don’t have a permanent address in the Dominican Republic, he said.

He explained that he is currently proposing one tax offset with another, within the system modernization project so that the virtual platform is easier to use, because the world is moving towards general and mandatory electronic invoices.

He stressed that the country’s legal framework does not consider electronic billing and for this reason it must be adapted to the global modernity already applied in 100% of countries such as Chile, Argentina and Mexico.

He pointed out that in this context, two projects are being considered to move towards modernization, namely electronic invoices and the amendment of the first address.

The Director General of DGII explained to the press that Draft electronic invoices will be sent to Congress He should leave next week for legal advice to the executive branch. He said taxpayers using them are increasing, both those with their own accounting systems and those with the free billing system available on the DGII portal, and there are currently 164 voluntary taxpayers and more than 200 in the process of formalization.

In February of this year, the Directorate General of Internal Taxation (DGII) and Legal Consultations of the Executive Branch summoned all interested persons to give their comments, suggestions and observations on the draft “Regulation regulating the procedure for applying ITBIS to digital services captured in the Dominican Republic and which are provided by foreign providers.” For 25 days, from February 15th to Monday, March 21st.

The tax will be applied only to providers who are not resident or domiciled in the Dominican Republic and who from abroad provide services in the national territory, such as Amazon, Expedia, Google, Netflix, Spotify, DiDi, Uber, Expedia, Airbnb, Indriver and more.

The digital service under the ITBIS group is Advertising Online, Online brokerage (commission), data transmission, streaming, among others.

Modify The Director General of the DGII said that one of the goals that was proposed was to amend Title I of the Tax Code, not with the purpose of raising more taxes, but with the purpose of helping taxpayers.

He noted that the advances that the project will achieve are the reduction of arrears to 3% per month up to 100% of the tax, a catalog of taxpayers’ rights, including the order mailbox in the virtual OFV office and not only the notification of deeds.

That the Directorate General of Investment publish technical advice, that the need for a search warrant for the inspection of the taxpayer in enclosed spaces or personal residences, and that the taxpayer be obligated to pay compensating interest for the late payment be recognized by the administration.

In addition, the taxpayer is allowed to offset taxes, advances, fines and also automatically.

Another procedure is the creation of an electronic auction in the implementation of the tax debt.

fuel subsidy The official also expressed regret that while Collections increased by NT$20,000 million above expectations In the DGII only in the first five months of the year, they had to allocate 17,000 million Brazilian reais to subsidize the domestic price of gasoline and other fuels In order to keep it under $300 per gallon.

He argued that the first five months were good, but given the global situation, all efforts were wasted, “However, what’s the point if only R$17,000 million goes to fuel subsidies within five months”, without the government being able to use them for social work Infrastructure and business development.

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