Thanks very much Paul that was very helpful.
I do have some questions for you though.
First off I will tell you our situation.
Since we gave the DGII a pile of money in the middle of last year when we imported our first goods and paid them ITBIS (the legit value of the goods), and since we were bringing in very little pesos at the till, we put off doing any declarations until now.
We just received an e-mail from DGII saying the deadline to file our 2016 taxes is next week. So I'm jumping on my partner to get to work on this now!
So far we have input the big ITBIS we paid mid-2016 on form IT1.
That's all we have entered on it so far.
We are now filling out 606's for 2016.
... The IT1 is the form which shows the amount you have billed, less the amount of receipts, with various other boxes for things like the 2% retained by credit card companies if you take payments by credit card.
When you say "less the amount of receipts", which receipts are you talking about? The same ones you just filled out in 606?
Yes we did take payments by credit card and they did deduct 2% each time. Where exactly on IT1 do we declare this?
If you don't have any income, just outgoings, then you "should" still file the IT1 and 606 each month. But because the DGII owes you money - basically you are going to reclaim the ITBIS that you have spent - this can be done annually. I guess this is your situation. The procedure is the same though, you have to file a 606 listing all the receipts and can only reclaim ITBIS if you have a receipt with an NCF.
We basically have mostly 'outgoings'. You say the DGII owes us money. Wouldn't it be more accurate to say they keep a tally of our ITBIS credit, since they will never ever give us back this money (ITBIS)?
When you say we can only reclaim the ITBIS if you have a receipt with an NCF this is where I get confused.
Let me explain.
To me there are three forms of ITBIS:
1. ITBIS we paid when we imported our goods.
2. ITBIS we paid when we had expenses (purchases we made)
3. ITBIS that our customers paid to us.
Is the T1 ITBIS tally combined with the 606 ITBIS expenses tally?
If so, how is it done, automatically or do we combine them?
Am I correct in assuming that the 606 expenses list can be used somehow to reduce any income we have?
If so, is it dollar for dollar? Where/how do we use it, which form?
You talk about Gasto Menor which don't require documentation usually until $50,000 is reached.
We have major travel expenses. Can they be declared and if so where/how would we do it without NCF numbers (not that we have the income needed to make use of it)?
Can expenses such as these be carried over to future years if not used?