- Thread starter Jasper
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15% tax on bank deposits with new tax reform proposal
But think on a bit gentlemen. At present the only people who can afford to HAVE bank savings are those with MONEY. A lot of them are holding 60 day or more certificados & getting 50% or more pa from Banco Central. Now, IF those certificados are LOCKED in for 12 months or more, then the Government would get 15% of that 50%, making the NET interest down to 35% - MUCH more acceptable to the overall scheme of things.
Whereas I realise that this will affect my income quite substantially, I am in favour of the concept that those with savings SHOULD get some form of income tax levied on their income from interest earned. If my money goes to pay for a few more medications to the local hospital or produces an extra meal per week for the school children, I am ALL infavour of contributing. My only hope is that this IS enforced across the board & those with lots MORE money than me do not get out of the net by "buying" some special privaledge!!!
Tax on RENTAL income is now going up to 20% (did I read that figure correctly Dolores?? What has it gone up from to get to this new high figure?) & THAT I would suspect will be a real earthshaker for those who rent out their properties for 6 or 9 months of the year!!
The question now is, will the Congress & Senate ALLOW these tax proposals to go through because many of those institutions will be hit quite heavily in new taxes!! They CAN afford it, but WILL they?? - Grahame.
Whereas I realise that this will affect my income quite substantially, I am in favour of the concept that those with savings SHOULD get some form of income tax levied on their income from interest earned. If my money goes to pay for a few more medications to the local hospital or produces an extra meal per week for the school children, I am ALL infavour of contributing. My only hope is that this IS enforced across the board & those with lots MORE money than me do not get out of the net by "buying" some special privaledge!!!
Tax on RENTAL income is now going up to 20% (did I read that figure correctly Dolores?? What has it gone up from to get to this new high figure?) & THAT I would suspect will be a real earthshaker for those who rent out their properties for 6 or 9 months of the year!!
The question now is, will the Congress & Senate ALLOW these tax proposals to go through because many of those institutions will be hit quite heavily in new taxes!! They CAN afford it, but WILL they?? - Grahame.
That 15% on the interest is a pipe dream which will never come true. i wonder what the hell are those guys smoking geeeee! must be good.
ERICKXSON said:
I beg to differ but I would be very interested in your reasons for making this observation. WHY do you think it will never come true? What reasoning do you base your comments on? - Grahame.
Well if we are to place any credence on your thoughts, please be so kind as to share them with us. I have an open mind & am ALWAYS ready to learn, so please let me know what your reasons are. If you are afraid to do so on an open format - for fear of being proven wrong later - feel free to PM or e-mail me!!! - Grahame.
1. i have some friends next to Leonel there is something behind that
2. banks will not allowed it
3. do you think they will allow 99% of DR money fly to miami, miami has already 80% of it.
let's see what happen! i usually have no more than RD$100,000.00 pesos in my account regardless of what the dollar tendency is therefore i'm not worry about those measures, if they do become a reality in the long run all of us will HATE LEONEL.
HOWEVER
I DO HATE THE IDEA OF GETTING 15% on a pesos certificate and then pay 15% of what ever i get out of it there's no commonsense behind it unless there's is an absurd temporary measure to scare those that enriched themselves during the Mejia government.
what do you guys think......................................
2. banks will not allowed it
3. do you think they will allow 99% of DR money fly to miami, miami has already 80% of it.
let's see what happen! i usually have no more than RD$100,000.00 pesos in my account regardless of what the dollar tendency is therefore i'm not worry about those measures, if they do become a reality in the long run all of us will HATE LEONEL.
HOWEVER
I DO HATE THE IDEA OF GETTING 15% on a pesos certificate and then pay 15% of what ever i get out of it there's no commonsense behind it unless there's is an absurd temporary measure to scare those that enriched themselves during the Mejia government.
what do you guys think......................................
Now that's true
Cut government spending (on bull****) and unnecessary jobs. 180 odd Generals...... Please.
Gary
Cut government spending (on bull****) and unnecessary jobs. 180 odd Generals...... Please.
Gary
tax increase or shall we say enrichment hasting
"Cut government spending (on bull****) and unnecessary jobs. 180 odd Generals...... Please."
But it doesn't stop there! STOP paying ALL those bums that are on the government's payroll that don't even show up to work but to shake some hands, laugh with a few people and pick up their checks. An uncle and a cousin's husband that LIVES in Miami included. The way I see it is that the GOV should be banned from raising any more taxes until all the corruption and accounting fraud holes are plugged. I don't see this progress happening any time soon, so I see any tax increases as money that's going to end up in the "inner circle's" pockets, one way or the other, trust me on this one... :bandit:
"Cut government spending (on bull****) and unnecessary jobs. 180 odd Generals...... Please."
But it doesn't stop there! STOP paying ALL those bums that are on the government's payroll that don't even show up to work but to shake some hands, laugh with a few people and pick up their checks. An uncle and a cousin's husband that LIVES in Miami included. The way I see it is that the GOV should be banned from raising any more taxes until all the corruption and accounting fraud holes are plugged. I don't see this progress happening any time soon, so I see any tax increases as money that's going to end up in the "inner circle's" pockets, one way or the other, trust me on this one... :bandit:
This may be slightly unreleated, but I haven't been down in about 4 months and my 3 month cds at Scotia were getting 19.5 % interest. The bank people told me they would automatically renew, but I am wondering if the interest rate has fallen with the peso. Does anybody know the current rate?
You can save millions of pesos by getting rid of 'ghost' military personnel. There are literally thousands of 'soldiers' getting paid, that do not work in the military anymore but their generals keep them on the payroll for a cut of the action. One of the guys works for us and he left the military 3 years ago but still gets half the paycheck, the other half his former boss, some general gets.
gmiller261 said:
Gmiller261, you could not have said it better. Services and goverment account for almost 60% of the labor force of DR. That figure is an outrage. From what I read, corruption in this sector is out of control. One thing is for sure, if the prosposed taxes, not saying that there are a few that are really needed, do go through, I see the economic recovery for the DR in a very distant future. DR econimy is very fragile right now and creating new taxes to increase revenue should be a carefully thought subject. If proposal is approved it will defenitely hurt the locals and foreign investments, further crippling the financial sector. This may cause other banks to default. I think goverment spending has to be slashed and brought under control. I think a 15% tax hike on interest earned will definetly hurt the financial sector both as a short term measure, which is doubtful, and as a long term measure even worse.
Sorry folks, but what a bunch of Chicken Littles you are.
If you really think things are so unfair in the DR, take a look at your last IRS Form 1040, line 8a : TAXABLE INTEREST EARNED. Any US citizen must declare, and pay taxes on any interest they earn on any form of deposit, unless it's in a tax-free municipal bond, etc.
The UK and EU are similar - why on earth do you think the EU is pushing the OECD /FATF to go after their citizens who DARE deposit money in so-called tax havens like Jersey, or Cayman, or wherever, and don't declare the interest they earn when it comes time to square up their taxes?
My bet is that the majority of you who do live here in the DR, don't pay any taxes on your property (which doesn't start until the $3 million valuation level is reached), any income taxes if you do work (which begin at RD$16,455 a month), and no taxes on investment income earned in the DR.
Yes, you do pay ITBIS on most of your purchases (but compare it to VAT in the UK and keep complaining to me how "unfair" it all is), taxes on rental properties, taxes on gas and smokes and beer and booze, but it all doesn't add up to a fiddle's fart. That's why you're HERE. Just try retiring in the UK on 1000 quid a month, or in the US on less than $2k a month. Things may work there, but not at this price.
Why should anyone who works, and does well at it, have to pay for the 85% of free-loading, socialistic dominicans, AND you??? Start pulling your own weight man, the load's getting too heavy.
I say make EVERYONE pay 10%. Period. No matter how little you make, or how much, or from whatever source in the DR. If you bring the $$ in, tax the same 10%, when you change money at the casa de cambio. Caught evading, pay double.
The money would roll in, and the people who REALLY make things prosper in this, or any country, would do so here in the DR.
End of sermon. Suerte.
If you really think things are so unfair in the DR, take a look at your last IRS Form 1040, line 8a : TAXABLE INTEREST EARNED. Any US citizen must declare, and pay taxes on any interest they earn on any form of deposit, unless it's in a tax-free municipal bond, etc.
The UK and EU are similar - why on earth do you think the EU is pushing the OECD /FATF to go after their citizens who DARE deposit money in so-called tax havens like Jersey, or Cayman, or wherever, and don't declare the interest they earn when it comes time to square up their taxes?
My bet is that the majority of you who do live here in the DR, don't pay any taxes on your property (which doesn't start until the $3 million valuation level is reached), any income taxes if you do work (which begin at RD$16,455 a month), and no taxes on investment income earned in the DR.
Yes, you do pay ITBIS on most of your purchases (but compare it to VAT in the UK and keep complaining to me how "unfair" it all is), taxes on rental properties, taxes on gas and smokes and beer and booze, but it all doesn't add up to a fiddle's fart. That's why you're HERE. Just try retiring in the UK on 1000 quid a month, or in the US on less than $2k a month. Things may work there, but not at this price.
Why should anyone who works, and does well at it, have to pay for the 85% of free-loading, socialistic dominicans, AND you??? Start pulling your own weight man, the load's getting too heavy.
I say make EVERYONE pay 10%. Period. No matter how little you make, or how much, or from whatever source in the DR. If you bring the $$ in, tax the same 10%, when you change money at the casa de cambio. Caught evading, pay double.
The money would roll in, and the people who REALLY make things prosper in this, or any country, would do so here in the DR.
End of sermon. Suerte.
Leonel has already said he is not going to honor the interest on the CD's at Central Bank. 0% interest. Not only that, he is looking to tax the CD's at 15% interest.
You deposit 1,000,000 pesos expecting back 1,500,000 pesos in 12 months. You receive 850,000 pesos back.
Still a better deal than mercantil and baninter.
When you think it about it, it's a perfect way to tax the people with extra money.
Welcome to the DR.
You deposit 1,000,000 pesos expecting back 1,500,000 pesos in 12 months. You receive 850,000 pesos back.
Still a better deal than mercantil and baninter.
When you think it about it, it's a perfect way to tax the people with extra money.
Welcome to the DR.
Good sermon, GringoCarlos! Actually, we're NOT all tax avoiders, here. Yes, I pay property taxes (IVSS) I even went & volunteered - less hassle than waiting for them to catch up with me!
Two questions as you seem to be knowledgeable - I thought income tax started at 14,000 pesos per month? Did it go up recently to 16,000? I don't work so don't pay income tax, but often get asked the question. Secondly, do you happen to know the current tax payable on renting out property? I don't rent out, but have been asked the question by someone who is looking into buying property to rent it out. Thanks in anticipation.
Two questions as you seem to be knowledgeable - I thought income tax started at 14,000 pesos per month? Did it go up recently to 16,000? I don't work so don't pay income tax, but often get asked the question. Secondly, do you happen to know the current tax payable on renting out property? I don't rent out, but have been asked the question by someone who is looking into buying property to rent it out. Thanks in anticipation.