Advantage taxwise of having a corporation.

bob saunders

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Jan 1, 2002
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For a Dominican what is the advantage tax wise of have a corporation. Can you claim the cost of building a building against or income tax, or do you do a capital depreciation? Same for buying a vehicle, if your corporation buys it, can you claim that against the taxes on income, or is it capital depreciation? I've never been in business for myself, in any country, so those in know straighten me out on this.
 

Fabio J. Guzman

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Jan 1, 2002
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You can deduct any expense related to the business of the corporation, capital depreciation, etc.

The corporate tax rate, however, is slighty higher than the rate for individuals: a flat 25% vs. a graduated scale from 15% to 25% (the 25% kicks in at approx. $20K).
 

AndyGriffith

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Mar 11, 2010
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If a Dominican Corporation is a holding company and does not generate taxable income under the DR tax code, would they then be taxed solely on the basis of the value of assets in the Corporation? What is the definition of 'assets'? The actual value of any and all assets in the Corporation on April 30th of every year OR the value of the authorized capital of the Corporation annually? Thank you for addressing my question.
 

AndyGriffith

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Sr. Guzman,

Thank you for addressing my questions. It states that the ownership of stock in other corporations is exempt from the asset holding tax, however, how is income of a foreign corporation taxed that is owned by a Dominican corporation? Specifically, financial income in this instance. Is foreign sourced financial income taxable to a Dominican Corporation through ownership of a foreign corporation?