Visa de Negocios (NM) o Residencia

monsoon68

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Dec 19, 2005
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I am currently a teleworker in Canada and I am thinking in doing the same job from RD. My salary will be paid in Canadian funds and I will pay Canadian taxes. In this case, what would it be better/easier: to request a "visa de negocios con entradas multiples" or a "visa de residencia"? which one is easier to obtain?
Gracias :classic:
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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If you work in the Dominican Republic, you will be subject to Dominican labor laws, no matter that your salary is paid in a foreign currency or that you plan to pay taxes in a foreign country.

A business visa does not allow you to work in the DR, just to attend business meetings and the like.
 

monsoon68

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Dec 19, 2005
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Gracias Fabio! ... So, "visa de residencia": no problem.

Concerning income taxes, I thought there is an agreement btw Canada and Republica Dominicana for tax purposes, so that we don't pay in both countries. I would be like a consultant working from home and my pay cheque going to my Canadian bank account. A couple of questions:

1. How much percent is an employee taxed in the Rep. Dominicana?

2. When you said, subject to Dominican labor law, do you mean that my Canadian employer would have to give me vacation/benefits as per Dominican law?

It makes sense that I pay taxes because I would be using roads and some dominican services. So, I suppose, it would probably be better to change my Canadian tax status.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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Here is the new graduated tax schedule for individuals after the Tax Reform Bill of December 2005 (Law #557-05):

Up to RD$257,280.00 pesos - exempt
RD$257,280.01-RD$385,920.00 - 15%
RD$385,920.01-RD$536,000.00 - 20%
RD$536,000.01-RD$900,000.00 - 25%
RD$900,000.01 and up - 30%

An individual making RD$1,000,000 pesos a year (approx. $29,000 US) a year would pay RD$170,312 pesos in taxes (17.03%). The Christmas bonus is tax-exempt.

The scale is to be adjusted for inflation every January.

As for your second question, your Canadian employer will have to give you all the benefits granted employees by the Dominican Labor Code.