Income Tax Payment Collection Increases Tax Office´s March Collection by Seventeen Percent

Income Tax Payment Collection Increases Tax Office´s March Collection by Seventeen Percent
Santo Domingo, Dominican Republic 5/1/2012

March´s income tax report showed a 17% growth rate as compared to last year´s intake for the Dominican Internal Revenue Office (DGII in Spanish).

The report from the Economic Studies Department of the DGII indicated that taxes paid by businesses are in second place with a 32% …

The DGII announced that income grew around 17%, corresponding to a total of $2.714 million Dominican peso increase from March of last year when the total was $18.629 million pesos, marking a positive mid-year growth in these three large areas of collection: Individual and business income tax, (28.9%); Property tax, (16.4%); Taxes on Goods and Services (13%)..

Likewise, the DGII underscored that the collection of other types of income taxes presented a major relative growth of 86%. Part of these tax collections are Retention for the Goods and Services Provision for the State which went from a level of 0.5% to 3% according to Law 139-11 beginning in August 2011. The main reason for this present 616% growth has to do with taxes collected on Bank Lottery and Sporting Event Sales, created by the above-mentioned law.

The report from the Economic Studies Department of the DGII indicated that taxes paid by businesses are in second place with a 32% increase due to payments made as a result of audits related to Transference Prices, mainly from the hotel sector.

At the same time, Taxes on Checks and Bank Transfers and Business Taxes (ISR in Spanish), both relevant areas of DGII collection, grew 30.6% and 25.6%, respectively, as seen in the mid-year report.

As far as the goal of tax collection established in the National Budget, in March 2012 DGII income was shown to have reached 88.2%, which is equivalent to $2,492 billion pesos less than projected. For the part that refers to the evolution of accumulated DGII collections, income has maintained its positive tendency.

According to the information presented by contributors as observed in sworn statements taken on March 31, 2012, the DGII collected $2,955.6 billion pesos as established under Law 139-11. Of this amount, 41% was the result of Taxes on Net Financial Actions, followed by the increase in retention levels of the provision of goods and services to the State, with 16.5% participation.

Download the report here