What is ITBIS?
I work for a company that is starting to do business with the Dominican Republic. I have received some quotations adding ITBIS. Can somebody explain to me what it is?
ITBIS is just one of many things of which you should be aware in order to successfully run a company in the DR.
Good luck - did you try searching for "ITBIS"?
I get 210 hits...
"Showing results 1 to 25 of 210
Search took 5.96 seconds."
Read the sticky post above on Dominican Tax Law.
Fabio J. Guzman
Sosúa, Santo Domingo, San Francisco de Macorís, Cabrera
Las Terrenas, Samaná, Bávaro (Punta Cana) and La Romana
The opinion above should not be construed to be formal legal advice and was given without reviewing the facts and documents pertinent to the case. The reader should NOT act based upon this opinion without seeking professional counsel.
Originally Posted by FireGuy
this is their first post & they didnt say they are running a business IN the DR...just doing business WITH the DR
as a moderator, it may have been more beneficial for you to advise how to use the search function to find more information.
Welcome to the board Renee
Extract from Guzman Ariza's Overview on Dominican Tax Law:
Tax on the Transfer of Industrialized Goods and Services (ITBIS)
The ITBIS is a value-added tax applicable to the transfer and importation of most goods, and to most services (Art. 335). The rate of the ITBIS is 16% (Art. 341). For imports, the ITBIS is charged on the CIF value of the goods plus applicable duty (Art. 339).There are many exemptions to the ITBIS tax (Arts. 342 and 343), among them, the following:
* exported goods
* basic foodstuffs
* books and magazines
* educational materials
* financial services
* transportation services
* home rentals
* educational and cultural services
The 16% ITBIS must be added to every bill for goods and services that are not exempt. The individual or entity receiving the ITBIS must disburse it to the DGII within the first 20 days of the following month (Art. 353). Noncompliance is subject to a 10% surcharge for the first month and 4% for each month thereafter, in addition to 2.58% interest for each month or fraction of a month (Art. 252). From the total ITBIS received, the individual or entity is allowed to deduct any ITBIS paid to suppliers, customs, etc. (Art. 346).
A Free Zone company is also exempt from ITBIS charges, and receives a carnet to present for all purchases made outside a Free Zone for goods and services required by a Free Zone business. There is a monthly reporting requirement for all exempt purchases and an annual fee of about RD$2000 for the carnet.
One Dominican at a time please!
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