What is the rate of taxon retirement income?

Ken

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Jan 1, 2002
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mariaobetsanov said:
We are moving and want to know what is the rate on retirement income?

If you mean income being paid you in your own country by social security or the retirement program of some business, government agency, etc., the rate of tax in the DR is 0.

I'm getting retirement income from a couple of sources in the US. I must declare it there and would be taxed if my income were high enough, but not in the DR.

My retirement money is deposited in my account in the US. I have an arrangement with a local banco de cambio that permits me to write checks on that account and exchange them for pesos just as though I were exchanging dollars.
 

Lambada

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Mar 4, 2004
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If the amount Maria declares to Rentas Internas is high enough she will get taxed at a similar rate to income tax. You & I know how to work around the system, Ken. That is why I'm suggesting she does some research so that she doesn't inadvertently put herself in an unfortunate position.
Of course this could all change soon. I think we foreigners are expecting higher taxes, & maybe even some scenarios that mean we can't work the system!
 

Ken

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Why would she declare her retirement income to rentas internas? Her income is not in the DR. If I read her post right, she is retiring from a job in another country.

I tell people to keep their money in their own country and write checks to get what you need. I write US$500 checks a few times a month and change them for pesos in a banco de cambio where I have established a relationship.
 

BushBaby

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Jan 1, 2002
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Ken, I think you will find that in LAW, Retirement income from another country IS subject to tax in this country IF RENTAS INTERNAS (IRS) FIND OUT ABOUT IT!! There ARE ways of avoiding this & you have found & utilise successfully, one of them. Lambada obviously (from the way that she writes on this subject) knows a couple of others that keep Rentas Internas off her back whilst appearing to be totally legal & paying what taxes RI consider she is due to pay!

More power to your (& her) elbow for getting round the system - Newbies need to be made aware of "the way things are done or seem to be done" whilst they find their own feet!! - Grahame.
 

Ken

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Sorry to hear that. What is the income level at which they start taxing?
 

Lambada

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The last I heard it was at around RD$12,000 a month. This could be out of date info - it is about 4 months old. They are entitled to tax you on that portion of your pension which you bring into the country, not the full monthly amount you receive, & of course you don't bring in more than 12,000 a month Ken!! I've been asked for my pension docs but "didn't have them". I now keep a suitably "amended" version if asked for! What they did want to see was my ATM slips as this was the only proof I had of importing my pension, if you get my drift. So I withdrew 2 sums dated 15th & 30th (to keepit in line with Dominican pay days) & made sure the total was less than 12,000 & voila! I have the judicial assessment saying I am below tax level.
 

Ken

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Now I'm getting concerned. Where I change money using checks, they have computerized and my cedula number now goes on every transaction. Although I get a better rate this way, I think I had better start using ATM's more often and/or see if I can find a banco de cambio that will accept checks but isn't as well organized as Vimenca in Sosua is.
 

Larry

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Mar 22, 2002
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Different senario

If you are importing money into the DR from the US by any of the more common methods (wiretransfers, ATM or check writing as Ken does), and that money is not the direct result of a pension but is a draw from investments ( 401K, 457 plans, moneymarket accounts, whatever), is there any way you would be subject to ANY tax, income or otherwise, within the DR on that money? I want to get this straight.
Larry
 

Lambada

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Ken said:
Now I'm getting concerned. Where I change money using checks, they have computerized and my cedula number now goes on every transaction. Although I get a better rate this way, I think I had better start using ATM's more often and/or see if I can find a banco de cambio that will accept checks but isn't as well organized as Vimenca in Sosua is.
Ken,
If you're not paying any other form of tax which requires you to make the assessment evry January, I don't think you need be concerned. I have to pay IVSS on our house, & I got asked those questions when I initially went into the system for IVSS. Having dealt with it once, I haven't been asked again - they assume I'm still below the level. If you're not paying business taxes or IVSS you are probably below the radar, so to speak, so no one at Rentas Internas knows about you. Keep it that way if you can! Good luck.
 

mariaobetsanov

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Jan 2, 2002
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Thank you one and all!

You answered my questions by all the answers combined, I do not have any reason to go to rentas Internas. I will stay under the radar.