- Thread starter David B
- Start date
ITBIS
- Status
I have never not been charged this on credit card sales. Cash is different and sometimes you're not charged. But it's their normal sales tax. Remember there is no income tax, so it's just a value added tax. Some items are 16% if you buy in the grocery store.
Also here we have a lot fiscal evassion, so some restaurant do not report taxes to DGII and they cant not charge it, some other charge it and report less sales with double booking and pocket the money left.
All larger businesses are supposed to charge ITBIS. In some restaurants you may not be aware of it because they include it in the price you see on the menu, which is a method I prefer as you know where you are and don't get unpleasant surprises when the bill arrives. As Nan San Pedro says, it's not really outrageous - almost all countries have a sales tax of some sort.
There is income tax on monthly earnings of more than 30,000 RD. The first 30K is not taxed.
Makes sense, considering there is no income tax here. Still, I find it excessive for your average Dominican and, when I compare it with 6% back in PA, wel...
If the payroll(Nomina) is reported to the government, yes. The tax is called "Impuesto Sobre la Renta".
But in PA you pay Federal, State, Local, Real Estate, School and other taxes, depending where in the state you live. No way to really compare.
Well, I know, for example, a lieutenant in the army in Santiago, with three kids,, who brings in ess than 30k pesos a month so, yeah, I think a sales tax of 18% is excessive.And actually, yes, he does pay taxes on that.
Well many do what you are suggesting. If it becomes large amounts I wouldn’t recommend it.
Wrong. For 2021 "Rentas hasta RD$416,220.00" per year isn't taxed ("https://dgii.gov.do/cicloContribuye...alesImpuestos/Paginas/impuestoSobreRenta.aspx") So if you make less than that amount during a year you don't have to pay tax, and that comes out to around 35k per month.
However, ITBIS is yes a "normal" value tax they add on products and services, you basically pay it on everything you buy.
What you should be on the lookout for when purchasing food at restaurants when you don't dine in, is the "10% ley". This is 10% that should go to the waiters/cooks and so on as a "tip". But if you don't dine in, you as a customer DOES NOT have to pay for that. ("https://poderjudicial.gob.do/scj-es...si-el-consumo-no-ocurrio-en-establecimientos/") article that explains that the supreme court ruled that as a client you should NOT have to pay the 10% propina tax on your bill.
So if you get charged for that although purchasing take out /delivery according to the sentence number "033-2021-SSEN-00765" you have the legal right to refuse to pay that.
- Status