After reading posts for the past few hours it seems that there is a lot of talk of the difficulties of operating a business in the DR. Including operating a internet page in the DR. My question is, are there any obstacles of operating an international business on the internet. For example, a mail order business offering products to customers mainly in the United States and shipping those products from contacts in the USA. Two main requirements would be fast internet and low telephone rates. One may ask why not operate the USA based business in the USA? For reasons such as costs of living, taxes, and the fact that you can be sued for looking outside your window all play an important role. I would appreciate any comments
- Thread starter gilbert
- Start date
International Business in Dominican
Gilbert is easy get your web space a DSL account a Vonage phone account and wallah, hey are you going to sell counterfeit purses? or what?
No Taxes
You dont need to pay taxes in DR if you want to sell parts even opening a office in the island.. only if you register your name or company name on our RNC (National Company Record) you will have to pay taxes other way no at all
...
You dont need to pay taxes in DR if you want to sell parts even opening a office in the island.. only if you register your name or company name on our RNC (National Company Record) you will have to pay taxes other way no at all
...yeap!
For example you can have a operatin office of your business to sell or promote services and products to US or Europe via phone or Fax.
For example you can have a operatin office of your business to sell or promote services and products to US or Europe via phone or Fax.
Business
other example i have my own company on RD as a freelance for other companies or person thats needs any web or desktop app. i started whiout registering ... now cos im getting big contracts i have to register it. and also to provide services to the mayor communications companies here. visit www.macoris.net o www.macorisnetwork.com
other example i have my own company on RD as a freelance for other companies or person thats needs any web or desktop app. i started whiout registering ... now cos im getting big contracts i have to register it. and also to provide services to the mayor communications companies here. visit www.macoris.net o www.macorisnetwork.com
Canadian residency vs non-residency
Gilbert,
I have been researching this to facilitate a move to the DR; I recently spoke to an accountant on requirements for emigration from Canada.
Residency in the DR does NOT automatically preclude residency in Canada... there are certain steps you must take if you wish to renounce your Canadian residency. These steps culminate in what's known as an official 'Day of Departure'.
You must cut 'residential ties' to Canada, including:
-closing bank accounts & credit cards
-revoking your driver's license
-declaring capital gains on personal assets for Canadian tax purposes-- like real estate other than your official residence, investments, etc.
-filing an income tax return close to the Day of Departure. (In my case, this is likely to be in January of 2004. So if I am in Canada for the first 15 days of January, I will file a special 2004 non-resident return soon after for Jan 1- Jan 15, 2004).
If you hold an investment account with a brokerage firm, you are required to let them know your official Day of Departure so they change the status of your account-- this facilitates higher rates of withholding tax on certain investments (interest, dividends). You will be unable to hold Canadian mutual funds. Withdrawals from an RRSP account will be subject to withholding tax of 25%.
If you do not properly finalize your exit, Canada may still consider you a resident for tax purposes... even if you are a full-time resident of the DR.
In my case, a business I operate in Canada will still be receiving income, so management fees paid to me are subject to a withholding tax of 15%. The company is required by law to withhold this percentage, and there is a specific form to be used. Other types of income... ie. wages... are subject to 25%.
These withholding taxes are considered your 'final commitment to Canadian taxation'.
I looked into 'electing to file a return for non-residents' ... this allows some non-residents to be refunded amounts from the withholding taxes if the amounts withheld are too high. However, if you do elect to file a non-resident return, be aware that you are required to submit your world wide income, upon which a formula is used to ... hee, well... to be sure Canada keeps as much of the withheld tax as possible. I expect for many it's not worth the hassle, although in a retirement situation it might be.
The CCRA website offers some good basic information on the requirements for non-residency. As well, I was advised to ask specific questions of the Intl tax dept to be sure I am following requirements-- this is the only dept with individuals well-versed in specifics.
I am not in Canada at the moment, so do not have access to particulars.
Are you interested in knowing more about this aspect? If so, I will be glad to follow up here with the tax guide numbers and phone number. I plan to return by Dec 6th.
Or, you can visit the CCRA website and research info on non-residency. I also suggest you seek advice from an accountant with experience in this area, as each circumstance is different.
D
Gilbert,
I have been researching this to facilitate a move to the DR; I recently spoke to an accountant on requirements for emigration from Canada.
Residency in the DR does NOT automatically preclude residency in Canada... there are certain steps you must take if you wish to renounce your Canadian residency. These steps culminate in what's known as an official 'Day of Departure'.
You must cut 'residential ties' to Canada, including:
-closing bank accounts & credit cards
-revoking your driver's license
-declaring capital gains on personal assets for Canadian tax purposes-- like real estate other than your official residence, investments, etc.
-filing an income tax return close to the Day of Departure. (In my case, this is likely to be in January of 2004. So if I am in Canada for the first 15 days of January, I will file a special 2004 non-resident return soon after for Jan 1- Jan 15, 2004).
If you hold an investment account with a brokerage firm, you are required to let them know your official Day of Departure so they change the status of your account-- this facilitates higher rates of withholding tax on certain investments (interest, dividends). You will be unable to hold Canadian mutual funds. Withdrawals from an RRSP account will be subject to withholding tax of 25%.
If you do not properly finalize your exit, Canada may still consider you a resident for tax purposes... even if you are a full-time resident of the DR.
In my case, a business I operate in Canada will still be receiving income, so management fees paid to me are subject to a withholding tax of 15%. The company is required by law to withhold this percentage, and there is a specific form to be used. Other types of income... ie. wages... are subject to 25%.
These withholding taxes are considered your 'final commitment to Canadian taxation'.
I looked into 'electing to file a return for non-residents' ... this allows some non-residents to be refunded amounts from the withholding taxes if the amounts withheld are too high. However, if you do elect to file a non-resident return, be aware that you are required to submit your world wide income, upon which a formula is used to ... hee, well... to be sure Canada keeps as much of the withheld tax as possible. I expect for many it's not worth the hassle, although in a retirement situation it might be.
The CCRA website offers some good basic information on the requirements for non-residency. As well, I was advised to ask specific questions of the Intl tax dept to be sure I am following requirements-- this is the only dept with individuals well-versed in specifics.
I am not in Canada at the moment, so do not have access to particulars.
Are you interested in knowing more about this aspect? If so, I will be glad to follow up here with the tax guide numbers and phone number. I plan to return by Dec 6th.
Or, you can visit the CCRA website and research info on non-residency. I also suggest you seek advice from an accountant with experience in this area, as each circumstance is different.
D
Last edited:
Thanks for the information. I greatly appreciate it.
Closing bank accounts and credit cards will not be a problem. Would I be able to have bank accounts in the USA?
What about my passport? Would I still be able to keep it? I plan to do alot of traveling and like the advantage of a Canadian passport. Also what if I come back to Canada to visit, would I not be permitted to drive? Would it be tough if I decide to become a Canadian resident again?
What kind of business are you in Dawnwil? Thanks again for the info
Closing bank accounts and credit cards will not be a problem. Would I be able to have bank accounts in the USA?
What about my passport? Would I still be able to keep it? I plan to do alot of traveling and like the advantage of a Canadian passport. Also what if I come back to Canada to visit, would I not be permitted to drive? Would it be tough if I decide to become a Canadian resident again?
What kind of business are you in Dawnwil? Thanks again for the info
Also I believe but am not possitive that I read somewhere that if I am in an other country for a certain period of time (over 6 months?) then I will not owe any taxes to my home country. If not is there any other way around things than to give up residency?
Dominican Embassy @ Canada
try to take a look to the Dominican Embassy @ Canada http://www.drembassy.org/?refer=www.macoris.net maybe you can find some information with them.
try to take a look to the Dominican Embassy @ Canada http://www.drembassy.org/?refer=www.macoris.net maybe you can find some information with them.
The Dominican Embassy in Canada will not provide information on Canada's requirements for its citizens to become non-residents. It will provide information on the Dominican Republic's requirements for residency in the DR. These are two different issues. Becoming a resident in the DR is pretty straightforward, and you need not begin that process from Canada. I don't know if it's wiser or not to do so, but my preference was to initiate it in the DR.
Maintaining accounts in the US is fine because the US allows bank accounts to be held by non-residents. Now you are talking about US regulations, not Canadian.
However, after 9-11, the banks do ask for more personal information-- a deterrent against funding of terrorism is the reasoning. This is true in Canada as well; ie, corporate bank accounts require more proof of identity upon opening.
Gilbert, you absolutely do not have to give up your Canadian passport, nor would you want to. It is one of the more desirable passports in the world. If I had to give it up, I wouldn't be leaving... I certainly would not trade it for a DR passport! All you have to do is visit theCanadian consulate in the DR once every five years to have it renewed.
Because you are a Canadian citizen, you may return to Canada whenever you wish, so of course it isn't a problem to become a resident again whenever you wish... although, if you were to do so within four years (?), the govt might decide that you had NOT permanently left Canada, and it has within its power the right to consider you a resident for tax purposes. Please do your own research on this... I am uncertain of the 'four year' detail, and as I do not plan to return within that time, it was an unimportant detail in my own research.
About driving in Canada-- as long as you hold a valid driver's license from the DR, you can drive in Canada with that driver's license. But be sure to handle the logistics in a timely way. You will need your valid driver's license from Canada to apply for your DR license. So, obviously, do not give up your Canadian one until you have your Dominican one safely in hand.
The next detail is also important, so please read carefully!
Do not assume that the '6 months plus a day' is the determining factor for Canada to decide you are no longer a resident. It isn't.
It is one of the criteria, because if you met all other requirements, and spent 6 months plus a day in Canada, the govt may declare you a resident of Canada.
Please realize that the CCRA has a pretty broad sweep in its power to determine whether or not you are a resident ... not quite as broad a sweep as the US govt, because it does not tax Canadian citizens on worldwide income if they are no longer residents.
As I said previously, you must cut all 'social ties' to Canada, or you may still be considered a resident for tax purposes. The govt does not really care if you actually reside in the DR, and says so on the CCRA website: "residency in another country does not automatically determine non-residency in Canada"... something to that effect.
Clear as mud?
I am in the arts, so am able to do my work anywhere. I put my 'business' on auto-pilot about 10 years ago to spend time writing, but am ramping it up again to ensure that I will be able to live securely in the DR, given this country's lack of infrastructure. My desire--ok, dream-- is to make it big with the writing, so I am more concerned with future 'world wide income'... which is why I'm making this move now. I think it's always better to plan for what you want, not what you don't want.
If you have no assets in Canada, perhaps you can simply leave and that's that. I would be leary of doing so, however, if your worldwide income is substantial. Much better to fill out the forms and make it official. You certainly don't want to find yourself in a future scrap with Canada.
Again, if you do have assets in Canada, I would advise you to seek some paid advice. I am repeating here what Ricktoronto advised me a few months ago with respect to my own concerns. He's also Canadian--as one might gather from the handle--and a straight shooter in his advice, so pay attention!
Good luck with your move. Feel free to ask other questions.
D
Maintaining accounts in the US is fine because the US allows bank accounts to be held by non-residents. Now you are talking about US regulations, not Canadian.
However, after 9-11, the banks do ask for more personal information-- a deterrent against funding of terrorism is the reasoning. This is true in Canada as well; ie, corporate bank accounts require more proof of identity upon opening.
Gilbert, you absolutely do not have to give up your Canadian passport, nor would you want to. It is one of the more desirable passports in the world. If I had to give it up, I wouldn't be leaving... I certainly would not trade it for a DR passport! All you have to do is visit theCanadian consulate in the DR once every five years to have it renewed.
Because you are a Canadian citizen, you may return to Canada whenever you wish, so of course it isn't a problem to become a resident again whenever you wish... although, if you were to do so within four years (?), the govt might decide that you had NOT permanently left Canada, and it has within its power the right to consider you a resident for tax purposes. Please do your own research on this... I am uncertain of the 'four year' detail, and as I do not plan to return within that time, it was an unimportant detail in my own research.
About driving in Canada-- as long as you hold a valid driver's license from the DR, you can drive in Canada with that driver's license. But be sure to handle the logistics in a timely way. You will need your valid driver's license from Canada to apply for your DR license. So, obviously, do not give up your Canadian one until you have your Dominican one safely in hand.
The next detail is also important, so please read carefully!
Do not assume that the '6 months plus a day' is the determining factor for Canada to decide you are no longer a resident. It isn't.
It is one of the criteria, because if you met all other requirements, and spent 6 months plus a day in Canada, the govt may declare you a resident of Canada.
Please realize that the CCRA has a pretty broad sweep in its power to determine whether or not you are a resident ... not quite as broad a sweep as the US govt, because it does not tax Canadian citizens on worldwide income if they are no longer residents.
As I said previously, you must cut all 'social ties' to Canada, or you may still be considered a resident for tax purposes. The govt does not really care if you actually reside in the DR, and says so on the CCRA website: "residency in another country does not automatically determine non-residency in Canada"... something to that effect.
Clear as mud?
I am in the arts, so am able to do my work anywhere. I put my 'business' on auto-pilot about 10 years ago to spend time writing, but am ramping it up again to ensure that I will be able to live securely in the DR, given this country's lack of infrastructure. My desire--ok, dream-- is to make it big with the writing, so I am more concerned with future 'world wide income'... which is why I'm making this move now. I think it's always better to plan for what you want, not what you don't want.
If you have no assets in Canada, perhaps you can simply leave and that's that. I would be leary of doing so, however, if your worldwide income is substantial. Much better to fill out the forms and make it official. You certainly don't want to find yourself in a future scrap with Canada.
Again, if you do have assets in Canada, I would advise you to seek some paid advice. I am repeating here what Ricktoronto advised me a few months ago with respect to my own concerns. He's also Canadian--as one might gather from the handle--and a straight shooter in his advice, so pay attention!
Good luck with your move. Feel free to ask other questions.
D
Thanks for the help. You are a wonderful writer and I know that you will make it big some day.
You summed up a lot of things. Thanks again. The passport question was my major concern. I have many more US bank accounts and assets than Canadian bank accounts and assets as my business is a internet mail order type company with 97% of it's customers in the USA. The most I would have to do is sell my car and get rid of all the garbage in the apartment I am renting.
I really do not need enough to live on. I go out maybe once a week and usually stay at home all day on the computer. As long as I can find a good place in DR where the internet and better yet electricity stays on than I'll be a happy camper. I am single, young, and my business can be taken anywhere.
One major question I have is in regards to accounting. As I read, if I have an international business and am not selling to anyone in the DR, I have no tax liability in the DR and only some small annual fees. My question is this; do I have to keep any invoices, receipts, business expense logs, or records of income if I am not obligated to pay tax in the DR? This is an important factor. It would make my life so much more organized if I didn't have to file 200 papers a week or buy a new filling cabinet every two months or spend an hour a night or day a month to figure out my monthly income. Since my business is fairly new, all my income is devoted into the business so even if I stayed in Canada I wouldn't owe a whole lot of tax, if any. I just really don't have the time, patience, or organization skills to deal with accounting. My goal is just to build up capital without worry or hassle.
Hope someone has the answer to this question. A positive answer would be one or two steps away from finalizing my decision.
Thank you again for your help,
GilBert
You summed up a lot of things. Thanks again. The passport question was my major concern. I have many more US bank accounts and assets than Canadian bank accounts and assets as my business is a internet mail order type company with 97% of it's customers in the USA. The most I would have to do is sell my car and get rid of all the garbage in the apartment I am renting.
I really do not need enough to live on. I go out maybe once a week and usually stay at home all day on the computer. As long as I can find a good place in DR where the internet and better yet electricity stays on than I'll be a happy camper. I am single, young, and my business can be taken anywhere.
One major question I have is in regards to accounting. As I read, if I have an international business and am not selling to anyone in the DR, I have no tax liability in the DR and only some small annual fees. My question is this; do I have to keep any invoices, receipts, business expense logs, or records of income if I am not obligated to pay tax in the DR? This is an important factor. It would make my life so much more organized if I didn't have to file 200 papers a week or buy a new filling cabinet every two months or spend an hour a night or day a month to figure out my monthly income. Since my business is fairly new, all my income is devoted into the business so even if I stayed in Canada I wouldn't owe a whole lot of tax, if any. I just really don't have the time, patience, or organization skills to deal with accounting. My goal is just to build up capital without worry or hassle.
Hope someone has the answer to this question. A positive answer would be one or two steps away from finalizing my decision.
Thank you again for your help,
GilBert
anual tax
well i just will tell you how do i do it. so maybe you can figure out how you can doit by yourself acordig with your appreciate.
this is what i do:
i do always keep all my documents invoices, receipts, business expense logs, or records of income etc.
then i can pay my taxes monthly or yearly depending on my work flows. i do preffer doit yearly but every month i make all my accounting calculations (Tax = Income - expenses) then i keep separate this calculation by moth when the day of taxes comes i just group the 12 logs and then i present the yearly log about my transactions, ease way!
You can select the method that you preffer i just give you an idea
Start making business! Come to Dominican Republic and dance merengue.
well i just will tell you how do i do it. so maybe you can figure out how you can doit by yourself acordig with your appreciate.
this is what i do:
i do always keep all my documents invoices, receipts, business expense logs, or records of income etc.
then i can pay my taxes monthly or yearly depending on my work flows. i do preffer doit yearly but every month i make all my accounting calculations (Tax = Income - expenses) then i keep separate this calculation by moth when the day of taxes comes i just group the 12 logs and then i present the yearly log about my transactions
, ease way!You can select the method that you preffer i just give you an idea
Start making business!
Come to Dominican Republic and dance merengue.you dont have to pay taxes if you are not registered.
im just told you about the taxes if you are plaining to provide services or products B2B class.