Income tax : Who is exempt from income tax?

By | December 27, 2021

Who will pay income tax? let’s see the explanation

What is the Income Tax?

It is the tax that is levied on all income or benefit obtained by individuals, companies, and undivided estates, in a given fiscal period. Legal Basis: Title II Law 11-92 d / f 05/16/1992 and its modifications.

Read more articles: Big Taxpayers to Celebrity not Paying Taxes

Who pays this tax?

Any natural or legal person residing in the Dominican Republic. The undivided successions of originators domiciled in the country will pay the tax on their income from Dominican sources. Sources outside the Dominican Republic from investments and financial gains.

Withholding Agents

Withholding agents are public and commercial entities, companies, and others. Which by mandate of the Law, must deduct the amount of the corresponding tax from the amount to be paid to natural or natural persons and undivided estates, having to deliver it to the tax administration within of the established term.

The deadline for filing and paying this tax is within ten (10) days after the end of the declared period.

Who is exempt from income tax?

Among others, the income of the State, the National District, municipalities, municipal districts, chambers of commerce and production, religious institutions, civil entities of social assistance, charity, charity, social, literary, artistic, political, union, scientific centers are exempt. and sports associations, as long as these associations are not for profit.

Tax rate

The rate of Income Tax that Legal Entities must pay is 27%.

Individuals residing or domiciled in the country will pay on the net taxable income of the fiscal year, the amounts that result from progressively applying the following scale corresponding to:

Employee retention scale 2021

Annual scale                                                                                           Rate
Income up to RD $ 416,220.00                                                           Extent or
Income from RD $ 416,220.01 to RD $ 624,329.00                15% of the surplus of RD $ 416,220.01
Income from RD $ 624,329.01 to RD $ 867,123.00                RD $ 31,216.00 plus 20% of the surplus of RD $ 624,329.01
Income from RD $ 867,123.01 onwards                                     RD $ 79,776.00 plus 25% of the surplus of RD $ 867,123.01

let's pay income tax

Date of presentation and payment

Physical person

The deadline for filing and paying the Income Tax Return for Individuals IR-1 is until March 31 of each year. If the payment deadline coincides with weekends or holidays, you can make the payment the next business day.

Corporate Income Tax Tax Return (IR-2)

The Corporate Income Tax Return (IR-2) must be filed no later than 120 days after the closing date of the company as detailed below:

Closing date December 31: April 30, 2021.
Closing date to March 31: July 29, 2021.
Closing date to June 30: October 28, 2021.
Closing date September 30: January 28, 2022.

Important Considerations: The tax payable must be paid on the same date.

Annual Tax Return of Asset Tax (ACT).

The Asset Tax Affidavit must be submitted on the same deadline as the Income Tax Affidavit (ISR) the resulting tax must be paid in two equal installments, the first due on the same date limit set for the payment of income tax and the second within six (6) months from the expiration of the first installment, as shown below:

First installment:

Closing date December 31: no later than April 30, 2021.
Closing date to March 31: no later than July 29, 2021.
Closing date to June 30: no later than October 28, 2021.
Closing date September 30: no later than January 28, 2022.

Second Installment:

Closing date March 31: no later than January 29, 2021.
Closing date to June 30: no later than April 28, 2021.
Closing date to September 30: no later than July 28, 2021.
Closing date December 31: no later than November 1, 2021.

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