Capital Gains Tax in the DR

tecate

Newbie
Dec 10, 2017
5
0
0
If I move to the DR, what % tax rate do they charge there in Capital Gains Tax?


Whats needed to open a bank account?
 

chico bill

Dogs Better than People
May 6, 2016
12,577
6,333
113
If I move to the DR, what % tax rate do they charge there in Capital Gains Tax?


Whats needed to open a bank account?

If you are asking those questions I think maybe you have not researched your move adequately enough to make a move.
And with a user name of Tecate maybe you wanted to go to Mexico instead ?
 

tecate

Newbie
Dec 10, 2017
5
0
0
chico bill: You are misreading the situation. I didnt say that I was moving to the DR 100%. The answer to the question that I asked is central to whether I seriously consider that or not.

As for the username, would I have gotten an answer if I used the username presidente? Seriously - I hope its that you dont know the answer rather than just coming back with the above as this is not helpful.

Anyone know the situation with regard to Capital Gains Tax in the DR?
 
Jan 9, 2004
10,898
2,226
113
If I move to the DR, what % tax rate do they charge there in Capital Gains Tax?


Whats needed to open a bank account?



Depends.

It is my understanding that the corporate rate is 27% and the individual rate is variable.....0-25%.

 Respectfully,
 Playacaribe2 
 

LTSteve

Gold
Jul 9, 2010
5,449
23
38
where will you incur that gain?
On or Off island....?

Yes, your question is a good one. Tecate are you talking about income from your current home country or income earned by either a business or investments in the DR? If you move to the DR, from the US, and become a legal resident, you would still need to file US income tax returns. Give us more clarity?
 

tecate

Newbie
Dec 10, 2017
5
0
0
The income is virtual....insofar as its a cryptocurrency investment and there is no trace of me having made that initial investment in any jurisdiction. I'm an irish national - so it seems from an irish taxation perspective, its difficult as i'd have to wait until i was resident in the other jurisdiction (whether that ends up being the DR or somewhere else) for 3 years and one day before I could realise that gain (without irish tax authorities having a claim on the gain).

I could realise the gain in the DR itself or via an offshore bank whilst resident in the DR (if the latter proved more favourable).
 

william webster

Platinum
Jan 16, 2009
30,247
4,329
113
Maybe you can just 'slide by'.... I would.

If Ireland is like the UK, offshore income isn't taxed - is it?

I would sell nad have the proceeds deposited in RD or wherever ....

Not too complicated.... if you feel like the walking on the wild side.... which many of us do, I expect.
On horse with no name.....
 

tecate

Newbie
Dec 10, 2017
5
0
0
Maybe you can just 'slide by'.... I would.
If Ireland is like the UK, offshore income isn't taxed - is it?
Not too complicated.... if you feel like the walking on the wild side.... which many of us do, I expect.
On horse with no name.....
Well, it has happened. Sometimes, overseas bank report earnings back to the customers home country but im being told that if i present with a non irish address, then in those circumstances, the banks dont feel they have to report any such gain to Ireland (historically, there were a whole host of irish people in the past that all got in bother for having offshore accounts...but then they would have all had irish addresses throughout and would have been fully resident in Ireland).
So I guess, yes, I could live with 'walking on the wild side' as you put it.

I would sell nad have the proceeds deposited in RD or wherever ....
So.....I guess that brings me back to what the Capital Gains Tax rate would be on any such gain realised whilst in the DR??

Furthermore, what all is necessary to open a bank account in the DR and what faith/trust can I have in leaving significant funds on deposit in a DR account?
 

william webster

Platinum
Jan 16, 2009
30,247
4,329
113
You will just be bringing money in....no question about a gain.
You might be asked where it came from..... my investment/savings, you answer and show them the original account to prove it’s yours.

DR bank account.... might take a bit.... lots on that here elsewhere 
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,359
252
83
www.drlawyer.com
The Dominican Tax Code defines capital gain as the difference between the sale price of a capital asset and its acquisition price or production cost adjusted for inflation. In the case of assets subject to depreciation, the rate of inflation is applied to the residual value adjusted for inflation. This adjustment avoids the unfairness of having to pay taxes on the price increase due to inflation, as is the norm in the United States and other countries.

Tax rates for capital gains are exactly the same as for regular income: 27% for companies, and zero to 25% for natural persons, depending on taxable income.

Capital gains are calculated only in Dominican pesos.
 

Catseye

Member
Nov 7, 2009
163
1
18
Rio San Juan, Dominican Republic
I don’t know about the Irish authorities but I know about the IRS.  When I came to this country 12 years ago, there was no IRS reporting that I knew of at my bank.  Last year I opened up another account at Banco Santa Cruz and had to fill out an IRS reporting form with my social security number so they can issue a 1099 INT to me for any interest they pay me.  I imagine any large transactions will get reported, too.  The IRS has hired a private investigator type firm to try to track and identify people’s cryptocurrency wallets since not many people have been reporting any bitcoin gains.  They bribe and pay off government and company officials to get names and information.  The penalties can be enormous for underreporting capital gains and historically, it usually takes them a couple of years to get to you and issue a letter.  But that doesn’t stop the interest and penalties from starting to accrue.  

Long term capital gains rates for US citizens:

https://www.schwab.com/resource-center/insights/content/taxes-whats-new

Just in case anyone is thinking about it, I think it would take a lot of effort to hide coins.  You have to have a cold wallet that you only access from other IP addresses, never from your own connection, and any transaction would have to be something that is not traceable.  If you accidentally hookup your wallet one day at home, you could get made.  I imagine tax attorneys will be very busy these years to come.
 

chico bill

Dogs Better than People
May 6, 2016
12,577
6,333
113
If we hold a DR passport - I'll be eligible in 6 months - can we open a bank account with a DR passport & Cedula, and tell them I'm Canadian (hey ?)
 

CristoRey

Welcome To Wonderland
Apr 1, 2014
11,717
7,977
113
As for the username, would I have gotten an answer if I used the username presidente? Seriously - I hope its that you dont know the answer rather than just coming back with the above as this is not helpful.

For some reason the ghost of Jorge seems to think the names we post under
identify the type of person we are. Couldn't be further from the truth.

Opening a bank account you'll just need a passport, some money and a few
personal (friends or family) as a reference for formalities only.