Results 1 to 8 of 8

Thread: tax question

  1. #1
    Newbie
    Join Date
    May 2002
    Posts
    7
    Post Thanks / Like

    Default tax question

    I am planning to move to R.D.
    Are you being taxed on your worldwide income or only on income earned in R.D. ?
    Do you have to declare assets outside the R.D. ?
    Any info welcome,Thanks

  2. #2
    Platinum
    Join Date
    Jan 2002
    Posts
    12,247
    Post Thanks / Like

    Default

    If you are employed in the DR you will be taxed on that. If you have other income from outside the DR, you will not be taxed on it. For example, I am retired and my retirement benefits are deposited in my account in the US. To get money, I write checks on the account and they are cashed in pesos with a local banco de cambio. I am not taxed on that income by the DR, but do need to declare it in the US.

    You don't have to declare outside assets, but if you apply for residency you need to show that you have a source of income. That is not the same as declaring all your assets, however.

  3. #3
    Gold
    Join Date
    Mar 2004
    Posts
    9,446
    Post Thanks / Like

    Default Ken

    I think one is supposed to declare pensions if asked. When I went to Rentas Internas to do the "Declaracion Jurada" for the I.V.S.S. (luxury tax) on our house, I was asked about my income. I explained it was a pension paid into my UK bank account & that I did not possess any papers on it! They wanted a statement of how much I accessed monthly, so I produced ATM receipts (dated 15th. & 30th. of that month) which in total did not exceed the baseline here for income tax. This was acceptable & I do not pay D.R. income tax on my pension (which is taxed at source in uk anyway). From the way the conversation was going, I surmised that if my ATM documentation had exceeded the income tax levels here, then that would have been factored into their equation. This question was only put to me once, a few years ago, & now they just assume I am not liable. I am not sure of the law on this, but like everything here, the practise is a grey area, which is malleable to manipulation.

  4. #4
    DR1 Expert
    Join Date
    Jan 2002
    Posts
    2,189
    Post Thanks / Like

    Default

    Foreigners residing legally in the Dominican Republic, must pay taxes on their worldwide income from financial investments after their third year of residency in the country (Articles 269 and 271 of the Tax Code). The same applies to Dominicans but without the 3-year grace period. The key text here is "de inversiones y ganancias financieras" ("of financial investments and earnings"). Would pension and social security benefits from abroad be included under that definition? I'm not sure what the answer would be. I do know however that Internal Revenue has not enforced this provision, not even against Dominicans with assets abroad.

  5. #5
    Regular
    Join Date
    Dec 2003
    Posts
    29
    Post Thanks / Like

    Default taxes as a non DR business ?

    If you operate as a non-Dominican business are the revenues taxed? For instance if I operate out of the DR and service clients in the US and Canada is the revenue taxed by the Dominican tax authorities?

    Also, isn't the Dominican Republic advertised as a Carribean Tax Free Zone>

  6. #6
    English Twit!
    Join Date
    May 2004
    Posts
    172
    Post Thanks / Like

    Default Income tax

    Quote Originally Posted by Lambada
    I think one is supposed to declare pensions if asked. When I went to Rentas Internas to do the "Declaracion Jurada" for the I.V.S.S. (luxury tax) on our house, I was asked about my income. I explained it was a pension paid into my UK bank account & that I did not possess any papers on it! They wanted a statement of how much I accessed monthly, so I produced ATM receipts (dated 15th. & 30th. of that month) which in total did not exceed the baseline here for income tax. This was acceptable & I do not pay D.R. income tax on my pension (which is taxed at source in uk anyway). From the way the conversation was going, I surmised that if my ATM documentation had exceeded the income tax levels here, then that would have been factored into their equation. This question was only put to me once, a few years ago, & now they just assume I am not liable. I am not sure of the law on this, but like everything here, the practise is a grey area, which is malleable to manipulation.

    Marjory :

    I have a pension paid from the UK. I do not pay any tax on it, Why do you?
    Brian

  7. #7
    Bronze
    Join Date
    Dec 2002
    Posts
    780
    Post Thanks / Like

    Default

    I have a pension paid from the UK. I do not pay any tax on it
    If you have a UK pension, the only way in which you will not pay tax on it is if it is below the taxable income threshold (I think currently 4610 per annum). If your annual pension income is higher than that you will definitely be paying tax on it, your annuity provider will be deducting it from your income.

  8. #8
    Moderator
    Join Date
    Jan 2002
    Posts
    16,185
    Post Thanks / Like

    Default

    Quote Originally Posted by Wales
    Marjory :

    I have a pension paid from the UK. I do not pay any tax on it, Why do you?
    Brian

    If you are still living in Canada that would be the reason you are not paying taxes to the U.K. If you file a Canadian income tax return you would have to declare it. The DR doesn't have any agreement with other countries regarding pensions that I know of.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •