Income Tax relief

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Santiago de Los 30 Caballeros
WAGE EXEMPTION
Monthly salary of $ 33,350 income tax free
EACH YEAR BY LAW THE WAGE INDEX CHANGES BY DGII

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Salaried workers will receive retroactive to Jan. 1 savings in their monthly salaries, according to the application of inflation adjustment in the statutory income tax (ISR).To this end, the salaries of up to RD $ 33,350 would be exempt from income tax this year, taking into account that inflation ended the year just closed in 8% of GDP, as reported by the authorities.

Each year since mid-January, the Directorate General of Internal Taxes (DGII) adjusts from ISR pay workers' salaries in line with inflation to be tax free.The measure applies retroactively to January 1.

Currently the exemption was to monthly wages up to RD $ 30,880, so it's applying now for those who earn RD $ 2,400 above that amount, which amounts to an indirect increase of their salaries.


The ISR applied it so that it includes several scales of 15%, 20% and a maximum of 25%. Legal persons pay a rate of 29% of their income, as the law was amended in fiscal retrofitting 139-11.

The indexation (adjustment) salary is covered by Article 327 of the Tax Code and the Regulation 139-98 105 of the Income Tax. The sections of the tax schedule is the result of applying the multiplier of inflation, calculated on the rate of inflation determined by the Central Bank.


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INTERNAL REVENUE PUBLICATION WILL AFTER 15th Jan:
The provision generally applies the first 15 days of the first month of each year.The inflation adjustment each year goes up automatically and thus a new salary scale that is published on the webpage of the DGII to the link withholding tables.

In 2008 the exemption was applied to RD $ 26,334.75 monthly in 2009 to RD $ 27,525.8, and in 2010 to RD $ 29,110.5 monthly.