Freelance work and DR income tax

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mcneila

Newbie
Jan 1, 2016
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I believe I understand the US taxation system reasonably well as I spent hours reading over the forms and publications on the US website for Foreign Earned Income. I understand how much to report for wages earned in a foreign country, the maximum I can make and be exempt from paying taxes, how to file and report, etc.

But I do not quite understand the DR income tax. For example, if I work freelance--writing, private tutoring, teaching online (in which the clients and source of the income come from outside the DR), am I required to pay DR income tax. Is there a threshold amount that I can make without paying taxes? If I make over the threshold what forms do I fill out and how often? Where do I file these forms? How much do I have to pay in taxes? Is there a website (Spanish or English) that I can read about to find out all of this information?

Any assistance would be greatly appreciated.
 
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charlise

Bronze
Nov 1, 2012
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To answer your question... How would the DR (governement) would know how much money you make ??? Think about that and then come back with a question.
 
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esl_prof

New member
Dec 6, 2013
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Do you have residency or citizenship in the D.R.? If not, you probably have no tax obligations here anyway.
 
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SKY

Gold
Apr 11, 2004
13,502
3,632
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Just do what any self respecting Dominican would do. Keep what you make............
 
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Neargale

Active member
Jul 4, 2013
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Would the DR government try to tax you if you had some sort of residency? would it not depend on any treaty between your country of origin and the DR? I know Canada taxes you on your world-wide income... they could conceivably talk to the DR government.
 
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william webster

Platinum
Jan 16, 2009
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RD & Canada have a tax treaty.......... as far as I know.

Forgoing the Cdn residency, eliminates the world wide income problem.

Ask Charlise to explain it.... she knows the ropes
 
Tamborista

Tamborista

hasta la tambora
Apr 4, 2005
11,747
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Remember, according to am esteemed member of DR1, taxation is "voluntary"!
 
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Contango

Banned
Dec 27, 2010
2,196
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"in which the clients and source of the income come from outside the DR), am I required to pay DR income tax".

Answer = NO..

You pay TAXES still in Canada for revenue earned as a Canadian.. In other words, you need to declare the revenue to CRA.. Even while you earned the money from a computer in the DR the revenue was earned from wherever.. YOU ARE A CANADIAN RESIDENT AND CTIZEN.. you need to become an expat if you want to avoid the corrupt Liberal Canadian Govt..
 
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esl_prof

New member
Dec 6, 2013
40
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SKY said:
Just do what any self respecting Dominican would do. Keep what you make............
Click to expand...

Exactly. Given that your income is derived from sources outside the D.R., it's not like there's going to be a paper trail or anything that the government can follow. If they can't prove you earned it, they can't tax you on it. Besides, you're contributing to the local economy by paying rent, utilities, food, etc. with an outside income--not collecting a local salary and sending it back home. You're contributing more to the local economy that way than you would by actually paying taxes.
 
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windeguy

Platinum
Jul 10, 2004
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Derfish said:
ANd here we've had people claiming loud and clear that the USA is the only country on earth that does that!
Click to expand...

Canada levies personal income tax on the worldwide income of individuals resident in Canada. The USA taxes US citizens who are NOT residents in the US. See the difference?
 
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Kipling333

Bronze
Jan 12, 2010
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The answer to the initial questions is that firstly it depends if you are here for more than 6 months a year and as such whether you do the right thing under Dominican law and take up residency here , a process that goes in various steps . If you do this ,then you will be subject to DR tax laws . Yes, there is a threshhold and the rate of tax goes up in steps, ie progressive tax. The tax law in the DR then says that income gained from abroad is taxable but this is not strictly enforced. The DR only has one double tax agreement and that is with Canada whereas Canada has a hundred or so double tax agreements. Under the double tax agreement you receive a credit for the tax paid in Canada on your income. Again, if you abide by the DR law, your accountant will ,if you are above the threshhold, submit a tax return and show the credit which is the tax paid in Canada .
AS I pointed out ,at present, the DR is not enforcing the law on earnings earned outside the DR , and you may care to wait until they change this policy .
 
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Kipling333

Bronze
Jan 12, 2010
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I understand that you are living in the DR and will receive income from abroad...I do not know if you have yet opened an account with a bank in the DR so you can receive your external income. This is now not such an easy process and if the emounts coming from abroad are substantial , the bank will want to know details about the incoming money. All this is quite recent and in the past there were few problems . In order to satisfy the bank you may have to tell them the nature of the incoming income. Many people get around this by having their income directed to their bank account in their own country ,in your case Canada , and then you can transfer the money which is in an account in your name in Canada to a Dominican bank account which is also in your name...far less hassles !!
 
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william webster

Platinum
Jan 16, 2009
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windeguy said:
Canada levies personal income tax on the worldwide income of individuals resident in Canada. The USA taxes US citizens who are NOT residents in the US. See the difference?
Click to expand...

In case you miss the issue , Derf.

Canada taxes on RESIDENCY..... if resident in the country more than 182.5 days a year

USA taxes on CITIZENSHIP regardless of where you reside.

Is that clearer?
 
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Kipling333

Bronze
Jan 12, 2010
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William although I am not Canadian, I think Canada follows much the same tax system as other commonwealth countries and a Canadian can declare himself a resident for tax purposes even though he lives there less than 6 months of the year .He is automatically a resident for tax purposes when he lives in Canada for more than 6 months but I think he also has the option to decalre himself a resident for tax purposes if he lives there for less. This then covers various Canadian workers who work around the world with out being in any one country for more than 6 months.
 
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Expat13

Silver
Jun 7, 2008
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Derfish said:
ANd here we've had people claiming loud and clear that the USA is the only country on earth that does that!
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No Derfish USA and one other small forgotten country nobody can pronounce are STILL the owners of the worldwide tax based on holding the Passport... The comment above was a Little misleading as he did not clearly mention that if you are nolonger a Canadian resident, you nolonger have the Canadian tax exposure, of course this assumes you nolonger work for, or do business in Canada, or have medical or any other like entitlements. This is the rational system unlike the tax forever regardless where and what you do style. Thats just plain ..........................
 
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william webster

Platinum
Jan 16, 2009
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Kipling333 said:
William although I am not Canadian, I think Canada follows much the same tax system as other commonwealth countries and a Canadian can declare himself a resident for tax purposes even though he lives there less than 6 months of the year .He is automatically a resident for tax purposes when he lives in Canada for more than 6 months but I think he also has the option to decalre himself a resident for tax purposes if he lives there for less. This then covers various Canadian workers who work around the world with out being in any one country for more than 6 months.
Click to expand...

Kipling,
I am not sure about the opting in or out situation.
What I am sure of is how easy it is to 'exit' Canada.... you just file an 'exit return' (mine was a June 30th, half year filing)

Leaving the US system is more complicated - involving a convoluted calculation of the number of days residing in country over a history of a few years.
 
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rafael

Bronze
Jan 2, 2002
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www.dr-tourist.tv
windeguy said:
Canada levies personal income tax on the worldwide income of individuals resident in Canada. The USA taxes US citizens who are NOT residents in the US. See the difference?
Click to expand...

The first 97k or so can be exempt. Either by not being in US for over a certain amount of days or through "bonafide resident", if you can prove you have a bonafide residence and do not have one back in US you may qualify.
 
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Jaime809

Bronze
Aug 23, 2012
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rafael said:
The first 97k or so can be exempt. Either by not being in US for over a certain amount of days or through "bonafide resident", if you can prove you have a bonafide residence and do not have one back in US you may qualify.
Click to expand...

12 consecutive months of foreign residency is the threshold, and the exemption goes up for 2015 taxes.
 
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