16% itbis on real estate???

hombrecaribe · Aug 31, 2009

Homes of the poor won't pay taxes
Homes that have a value of RD$1.5 million or less will not have to pay the 16% ITBIS tax, according to a new decree issued by President Leonel Fernandez. Decree 611-09 creates a RD$200 million fund so that these homes can be purchased without paying the ITBIS tax. The decision seeks to stimulate the construction of more low cost housing. The ITBIS program will be valid through 31 December 2010.

This is from dr1.com a couple weeks ago. Does this mean houses over RD$1.5 million have to pay this tax, this must be a misprint or I am just not understanding it correctly.

Black Dog · Aug 31, 2009

You don't pay ITBIS when you purchase a home. When a real estate agent sells one his/her commission is subject to ITBIS but not all are registered and pay it!

hombrecaribe · Aug 31, 2009

Must be misprint is what you are saying?? It clearly states that homes with less value won't need to pay ITBIS. Also not sure how this helps the poor if it is as you say only for agents paying on their commisions. Maybe Mr. Guzman would like to explain this if indeed it isn't a misprint.

Fabio J. Guzman · Sep 4, 2009

ITBIS is a value-added tax (VAT) not applicable to real estate transactions.

I believe you refer to the IPI (Impuesto sobre la propiedad inmobiliaria") which is an annual property tax.

MikeFisher · Sep 4, 2009

what ITBIS on property???
looks i missed something important which changed or you don't know what you are talking about, Hombrecaribe??
the tax to be paid on properties is a property tax, not a Vat.
low value property under a million and a half are excepted from paying that tax to help the poor to be able to purchase property.
what should be wrong on that?
wanna except the rich to pay the property taxes for their luxury beachfront lots?
you can't get a getaway condo or villa for softer conditions in the caribbean in a valuable destin than here in DR.
the property taxes are peanuts compared to what ya purchase and what you would have to pay in taxes somewhere else.
Mike

aarhus · Sep 4, 2009

But there is 16% ITBIS on commisions unless it is empreses especiales properties in Zona Francas. A lot of agents dont charge it and dont report it. Very frustrating if you belong to one of the brokers who do.

MikeFisher · Sep 4, 2009

that's a Vat,
a tax, named ITBIS paid by 16% on the winning money you make out of a deal, like on the comission for a sales, any sales, including property sales.
i understand fully why you name it frustrating to work for brokers which report their sales by the rule of the law,
on the other side you should know that the ones whio do not report their sales are working illegally.
it just depends on what side/way of life you wanna work and live.
everybody's choice.
Mike

MikeFisher · Sep 4, 2009

drcaycu said:
But there is 16% ITBIS on commisions unless it is empreses especiales properties in Zona Francas. A lot of agents dont charge it and dont report it. Very frustrating if you belong to one of the brokers who do.

you have also always the choice to report the ones withing your kinda business who do not run by the rules/laws, kick 'em out or don't complain.
like in all branches of businesses.
if a competitor offers the better deals b/c he/she is saving money by selling black deals,
knock him/her down and all will be just fine.
Mike

aarhus · Sep 6, 2009

MikeFisher said:
that's a Vat,
a tax, named ITBIS paid by 16% on the winning money you make out of a deal, like on the comission for a sales, any sales, including property sales.
i understand fully why you name it frustrating to work for brokers which report their sales by the rule of the law,
on the other side you should know that the ones whio do not report their sales are working illegally.
it just depends on what side/way of life you wanna work and live.
everybody's choice.
Mike

Yes I have decided to live on the legal side by collecting all comisions with a NFC comprobante fiscal. I am just saying there are not many who do it. And in this case the foriegners seem to be the worst. It is easier in Santo Domingo to work the legal way and make money.

MikeFisher · Sep 7, 2009

right,
it is very often foreigner's business who take it that way:
'hey, i m on the banana republic island, i am smarter than the rest, i do it in any way i want to'.
at some businesses this is still working, right,
but i saw in case of my own competition many boats stoppped/gone the last years, and most of them been american and puerto rican boats.
they 'think' they are superior and can do business the way they want to, some of 'em been teached the hard way that if they want to do so it will be better they try so at their homeports and not nearby here.
you have just to stick with the ones who do it right and always blame the bad apples publically, inckuding in front of their clientel audience.
Mike

Black Dog · Sep 7, 2009

I have a real estate office and pay 16% on all the commission that my office receives. The people that don't declare their income are, as stated, mostly gringos who think anyone can sell real estate, they have no experience, usually don't have residency and are just trying to make a quick buck!!!!!

hombrecaribe · Sep 7, 2009

LOL...not really a clear answer to this yet...

First as I previously stated, this below in green was in the news on Dominican Republic News & Travel Information Service some weeks ago...

Homes of the poor won't pay taxes
Homes that have a value of RD$1.5 million or less will not have to pay the 16% ITBIS tax, according to a new decree issued by President Leonel Fernandez. Decree 611-09 creates a RD$200 million fund so that these homes can be purchased without paying the ITBIS tax. The decision seeks to stimulate the construction of more low cost housing. The ITBIS program will be valid through 31 December 2010.

Mr. Guzman sir, are you saying that houses with a value over $1.5 million peso's need to pay 16% tax each year?
Why does it say "homes can be purchased without paying the ITBIS tax"?

Again I just pasted this news and I am looking for clarification, it seems to me this is a misprint.

MikeFisher · Sep 7, 2009

you pasted it more than once,
so start to read it.
it states that homes of 1.5 millions of pesos value do not have to pay the tax.
yes,
such logically means that the ones with an value over 1.5 millions have to pay the tax.
where's the confusion?
are you a poor dominican with property value over 1.5 millions per piece?
the exception law is made for low income dominican families to assist them yo own property.
if you are not native just forget about that one and look for wellfare at home.
Mike

hombrecaribe · Sep 8, 2009

I'm new to the forum here Mike, and thanks for being so helpful.

I'm sure you are an amazing masterbaiter, however, I'd rather hear from someone like Mr Guzman, or someone from dr1 to confirm the report.

Senor Guzman...

ITBIS is a value-added tax (VAT) not applicable to real estate transactions.

I believe you refer to the IPI (Impuesto sobre la propiedad inmobiliaria") which is an annual property tax.

I'm not referring to anything, as this was a report here on dr1 and it clearly says 16% ITBIS tax.
I'm only looking to clarify if this is a misprint or in fact is reality?

MikeFisher · Sep 8, 2009

hombrecaribe said:
I'm new to the forum here Mike, and thanks for being so helpful.

I'm sure you are an amazing masterbaiter, however, I'd rather hear from someone like Mr Guzman, or someone from dr1 to confirm the report.

Senor Guzman...

ITBIS is a value-added tax (VAT) not applicable to real estate transactions.

I believe you refer to the IPI (Impuesto sobre la propiedad inmobiliaria") which is an annual property tax.

I'm not referring to anything, as this was a report here on dr1 and it clearly says 16% ITBIS tax.
I'm only looking to clarify if this is a misprint or in fact is reality?

no problem.
and here a lil hint:
to get the full valuable professional and signed and sealed advice of Fabio just click on the logo on top left of this page and contact there directly, they can be consulted by customers online 24/7.
sorry buddy,
but if you need a specific legal advise for a specific case from a professional lawyer, you need to contact him straight on and not ask the Q on a open forrum where Q's get answered as a whole thingy.
and to get the pro advise the Guzman lawfirm is the best spot to ask for such.
click the button.
cheers
Mike

aarhus · Sep 9, 2009

Vat

MikeFisher said:
that's a Vat,
a tax, named ITBIS paid by 16% on the winning money you make out of a deal, like on the comission for a sales, any sales, including property sales.
i understand fully why you name it frustrating to work for brokers which report their sales by the rule of the law,
on the other side you should know that the ones whio do not report their sales are working illegally.
it just depends on what side/way of life you wanna work and live.
everybody's choice.
Mike

I believe in Germany it is called mehrwerhtssteuer

MikeFisher · Sep 9, 2009

yeap, that's correct.
in germany it is named
Mehrwertsteuer.
ciao
Mike

hombrecaribe · Sep 9, 2009

Another amazing and helpful contribution by the masterbaiter.

This forum would be amiss and practically worthless without your brilliance in sharing your higher level thinking, to assist us all in reaching such heights of intelligence.

I know personally I feel incredibly retarded after reading everyone of your masterful posts.

lil hint for you...
Stick to what you know best and go play with your rods you PAYASO!

MikeFisher · Sep 9, 2009

wooooahahaha

16% itbis on real estate???

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