AirB&B Regulation in the DR

[drisforme]

If the proposed tax for AirBnb can help improving the overall Infrastructure (road ,water,sewage,electricity,...),I am definitively a big supporter of it.

In some respect ,the "success" of AirBnb adds more demand on the infrastructure.
Why those demands could not supported by a tax ?

Peace.

 

[windeguy]

If the proposed tax for AirBnb can help improving the overall Infrastructure (road ,water,sewage,electricity,...),I am definitively a big supporter of it.

In some respect ,the "success" of AirBnb adds more demand on the infrastructure.
Why those demands could not supported by a tax ?

Peace.

I am quite sure you will get your wish to tax Airbnb (at the source). Once a source of revenue is identified, they rarely go undone.

I have my doubts that revenue will fix electricity, water and other infrastructure problems. But that is just me.

 

[Manuel01]

I don't think that is true. Many people (including me) have a company which does nothing else but own property, and has no income.

You can make a "Declaracion ZERO" or you can have some or even a lot of income but there is no law that says you have to make profit.

 

[CristoRey]

So, let's just keep Airbnb as it was. I know I am not going to change what will happen, but that is what I want.

If it ain't broke it don't need no fixing?
Hmmm...
Sounds familiar.

 

[josh2203]

I have my doubts that revenue will fix electricity, water and other infrastructure problems. But that is just me.

This is what I don't fully understand on many things in the DR: It has been reported frequently that places such as Perla Marina or even many other touristic/expat locations in the NC suffer from lack of water (!!!) and apagones. I believe windeguy reports this frequently from Cabarete as well.

I have seen the same happening in the city of POP. There are many locations on the hill side of Av Manolo Tavarez Justo (so climbing up) that are often without water. This despite the fact that I seriously doubt there is lack of payment on any of these areas. Then again, areas where I'm positive people perhaps don't even pay for their water, there is no problem with water.

If expats/tourists/snowbirds/whatever want to spend weeks/months/years in the DR, why leave them without water/electricity and therefore do negative promotion? As my quoted post also said, this cannot be due to lack of funds/revenue. Yes, stupidity/incompetence/whatever it can be, but how would someone be that stupid to turn away revenue for the country? Just by leaving them without water?

So again, areas where everyone for sure pays for their utilities, are left without, and where people don't pay, are not left without?

 

[windeguy]

This is what I don't fully understand on many things in the DR: It has been reported frequently that places such as Perla Marina or even many other touristic/expat locations in the NC suffer from lack of water (!!!) and apagones. I believe windeguy reports this frequently from Cabarete as well.

The primary reason for today's power and water issues is incompetence and corruption at both government owned companies that supply water and distribute power. Yes there is still theft of both resources, but that is no longer the main reason. I have dealt personally in various offices of the DR with the morons in charge, so this is directly from those horses asses.

I have seen the same happening in the city of POP. There are many locations on the hill side of Av Manolo Tavarez Justo (so climbing up) that are often without water. This despite the fact that I seriously doubt there is lack of payment on any of these areas. Then again, areas where I'm positive people perhaps don't even pay for their water, there is no problem with water.

It could have to do with where the most votes are and not payment.

If expats/tourists/snowbirds/whatever want to spend weeks/months/years in the DR, why leave them without water/electricity and therefore do negative promotion? As my quoted post also said, this cannot be due to lack of funds/revenue. Yes, stupidity/incompetence/whatever it can be, but how would someone be that stupid to turn away revenue for the country? Just by leaving them without water?

Because it is easier to do nothing and create the situation that is lacking. With the many more, admittedly small to medium, development's coming on line. eventually something might be improved, but don't hold your breath on that.

So again, areas where everyone for sure pays for their utilities, are left without, and where people don't pay, are not left without?

Four days with less than 5 lbs of water pressure this week. Only power outages recently are probably what Edenorte calls maintenance.

 

[JD Jones]

I have a big tank on the roof with a simple chlorination system, so I seldom have water issues. I also live by myself and do my best to conserve what I get.

But it's not all wine and roses. The residential area I live in has all sorts of issues with pumps, electricity and other issues that are pretty frustrating.

That's why I bought the tank.

 

[josh2203]

It could have to do with where the most votes are and not payment.

That's a very good point... Money/payment comes later on as they enter the office and get govt. salary... This brings me to another point, I obviously don't have any problem paying all the taxes in EU for example, but in the DR I do as you get very little back for what you pay for taxes... Only those jeepetas from govt officials are the most visible clue...

 

[JD Jones]

That's a very good point... Money/payment comes later on as they enter the office and get govt. salary... This brings me to another point, I obviously don't have any problem paying all the taxes in EU for example, but in the DR I do as you get very little back for what you pay for taxes... Only those jeepetas from govt officials are the most visible clue...

The 700+ public works projects all over the island are all samples of tax pesos at work, like the recently built bridge in Sosua.

 

[windeguy]

The 700+ public works projects all over the island are all samples of tax pesos at work, like the recently built bridge in Sosua.

Yeah, I would not hold up a gold star for that bridge being 2 years in the works. Perhaps the plazas in Sosua that might finish before Abinader' s second term instead for those of us on the north coast. Certainly not the promised Cabarete no show Bypass...

But yes, this administration did more than many before and will have a chance to do more with those additional likely AIRBNB taxes.

 

[josh2203]

The 700+ public works projects all over the island are all samples of tax pesos at work, like the recently built bridge in Sosua.

Yes, I'm aware of those, but I'm sure we'd agree that infrastructure in general is not in the best shape in the DR... Yet, it was just recently announced here in the DR1 news as well, that the political parties have huge budgets to do campaigning etc. Another point, look at all those govt owned vehicles abandoned due to lack of maintenance, the camionetas of the police etc are not exactly the cheapest vehicles out there, I'd say.

Again, not to just say something negative, I fully agree with you on the fact that they are indeed working all over the country...

 

[JD Jones]

Yeah, if it were up to me, political parties would get "zero" pesos for campaigning.

Vehicle maintenance is a thorn in my side. They do none due to the possibility of repair scams. Iive also seen Dominicans trash a perfectly good vehicle because of their prejudice towards the police.

 

[MariaRubia]

If it ain't broke it don't need no fixing?
Hmmm...
Sounds familiar.

It is broke though. And completely unfair. Hotels have to pay 18% ITBIS and have to be licensed. They are inspected every three months. And they have to pay tax. And then you have places which call themselves "Apartahotels" which compete with hotels on all the booking platforms, but they don't pay tax, they don't have insurance, they aren't inspected, they don't pay tax. The law says that vacation rentals are subject to ITBIS, it's just never been enforced because there is no way of knowing what is a vacation rental, so the licensing scheme is going to address that.

When it was a small sector, a blind eye was turned. But now that AirBnB is a big player and p'ssing off all the powerful families who are up to their necks in hotels, it's only a matter of time before the existing laws are enforced.

 

[MariaRubia]

This is what I don't fully understand on many things in the DR: It has been reported frequently that places such as Perla Marina or even many other touristic/expat locations in the NC suffer from lack of water (!!!) and apagones. I believe windeguy reports this frequently from Cabarete as well.

I have seen the same happening in the city of POP. There are many locations on the hill side of Av Manolo Tavarez Justo (so climbing up) that are often without water. This despite the fact that I seriously doubt there is lack of payment on any of these areas. Then again, areas where I'm positive people perhaps don't even pay for their water, there is no problem with water.

If expats/tourists/snowbirds/whatever want to spend weeks/months/years in the DR, why leave them without water/electricity and therefore do negative promotion? As my quoted post also said, this cannot be due to lack of funds/revenue. Yes, stupidity/incompetence/whatever it can be, but how would someone be that stupid to turn away revenue for the country? Just by leaving them without water?

So again, areas where everyone for sure pays for their utilities, are left without, and where people don't pay, are not left without?

Water is very very cheap. People only pay about 300 pesos a month, tops, for water. The water companies need to charge a lot lot more to sort out their infrastructure.

A big issue is that planning permission is given based on brown envelopes, with no thought of whether the infrastructure can support the new projects.

 

[Kricke87]

Yeah, if it were up to me, political parties would get "zero" pesos for campaigning.

Especially knowing that many politicians, especially the "higher ups" are multimillionares, so they could afford their own campaigns instead of wasting public taxes to their own advantage...

 

[JD Jones]

It is broke though. And completely unfair. Hotels have to pay 18% ITBIS and have to be licensed. They are inspected every three months. And they have to pay tax. And then you have places which call themselves "Apartahotels" which compete with hotels on all the booking platforms, but they don't pay tax, they don't have insurance, they aren't inspected, they don't pay tax. The law says that vacation rentals are subject to ITBIS, it's just never been enforced because there is no way of knowing what is a vacation rental, so the licensing scheme is going to address that.

When it was a small sector, a blind eye was turned. But now that AirBnB is a big player and p'ssing off all the powerful families who are up to their necks in hotels, it's only a matter of time before the existing laws are enforced.

Not to mention Cabañas.

 

[CristoRey]

It is broke though. And completely unfair.

I agree with you 100%
My previous post was directed at one of our fellow members who insist on having this country make drastic changes to systems put in place by the DR government, which he despises, who many non-residents benefit from. 😅
AirBnB's need more government regulation.

 

[windeguy]

It is broke though. And completely unfair. Hotels have to pay 18% ITBIS and have to be licensed. They are inspected every three months. And they have to pay tax. And then you have places which call themselves "Apartahotels" which compete with hotels on all the booking platforms, but they don't pay tax, they don't have insurance, they aren't inspected, they don't pay tax. The law says that vacation rentals are subject to ITBIS, it's just never been enforced because there is no way of knowing what is a vacation rental, so the licensing scheme is going to address that.

When it was a small sector, a blind eye was turned. But now that AirBnB is a big player and p'ssing off all the powerful families who are up to their necks in hotels, it's only a matter of time before the existing laws are enforced.

I understand from posts above that hotels aren't exactly paying their fair share. Many allegedly greatly reduce their reporting on how much income they make.

That is good for the goose should be good for the gander, but huge hotels owned outside the DR seem to be getting away with minimizing their taxes.

 

[windeguy]

I agree with you 100%
My previous post was directed at one of our fellow members who insist on having this country make drastic changes to systems put in place by the DR government, which he despises, who many non-residents benefit from. 😅
AirBnB's need more government regulation.

Apples and oranges. Mangos and bananas... Illegals versus the laws. Laws versus regulations not based in laws at all.

With respect to Airbnb's many people will find work arounds to the direct 18% tax, etc, by dealing direct. It will take some effort.

They could make a deal with clients to rent with Airbnb for one night and then pay directly to the owner for the rest of a stay.
Don't think that doesn't already happen just to avoid Aribnb's fees. Add another 18% of motivation on top of that.

 

[MariaRubia]

Apples and oranges. Mangos and bananas... Illegals versus the laws. Laws versus regulations not based in laws at all.

With respect to Airbnb's many people will find work arounds to the direct 18% tax, etc, by dealing direct. It will take some effort.

They could make a deal with clients to rent with Airbnb for one night and then pay directly to the owner for the rest of a stay.
Don't think that doesn't already happen just to avoid Aribnb's fees. Add another 18% of motivation on top of that.

I think the process will be: 1) All AirBnB's need to have a licence. This will be heavily policed, they will have people scouring all the relevant booking channels and a way of reporting anyone who is not licensed - which will work well as those who have gone through the pain will grass up those who haven't. 2) Once you have a licence, DGII will be in contact to make sure you are declaring your income. Obviously there will be people who don't declare all of it, but they will probably make an example of a few owners and get lots of publicity from it.

The DGII doesn't collect taxes directly for hotels which are booked on Booking .com and I can't see why they will want to start with AirBnB.