Pros-Cons Purchasing vehicle through a company

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Norteman

New member
Dec 15, 2008
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USA Incorporated Company not DR, Does have a DR RNC# to legally conduct business in the DR.

Considering buying a vehicle under the company name.

Does anyone have experience or feedback on this one way or the other.

Are Registration, Insurance, Taxes, higher, lower, or nominal difference.

Thanks!!!
 
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manilaestates

New member
Aug 13, 2010
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Norteman said:
USA Incorporated Company not DR, Does have a DR RNC# to legally conduct business in the DR.

Considering buying a vehicle under the company name.

Does anyone have experience or feedback on this one way or the other.

Are Registration, Insurance, Taxes, higher, lower, or nominal difference.

Thanks!!!
Click to expand...

It took me a long time before I could pay in full. My company once offered a car loan, but I refused it. I didn't think I could pay the car's maintenance bill.
 
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santa110xyz

Active member
Oct 25, 2005
571
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you will get charged each year 1% impuesto activo on the value of the car. every other fees are the same.
but if registered on company name you will have certain protection, if something unforeseen happens...accident etc....
 
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el forastero

Bronze
Oct 25, 2009
353
91
0
Full insurance was at no higher cost due to company ownership.

Also, if the company is operating in a free zone and gets the tax exclusion on ITBIS when they buy a new vehicle, the vehicle must be owned for a minimum period of time before sale or there is a tax issue/recapture on the ITBIS (5 years minimum ownership, not sure if this has since changed ??).

In or outside of a free zone, if the listed directors of the company which owns the vehicle aren?t in the DR, (I think we needed two director?s signatures for a sale) it is a pain in the arse when you decide to sell a vehicle owned by a company. You?ll have to send off the sales documents via Fed-Ex for them to sign and notarize and then send back via express to complete the transaction.
 
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aareff

New member
Apr 16, 2011
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el forastero said:
Full insurance was at no higher cost due to company ownership.

Also, if the company is operating in a free zone and gets the tax exclusion on ITBIS when they buy a new vehicle, the vehicle must be owned for a minimum period of time before sale or there is a tax issue/recapture on the ITBIS (5 years minimum ownership, not sure if this has since changed ??).

In or outside of a free zone, if the listed directors of the company which owns the vehicle aren?t in the DR, (I think we needed two director?s signatures for a sale) it is a pain in the arse when you decide to sell a vehicle owned by a company. You?ll have to send off the sales documents via Fed-Ex for them to sign and notarize and then send back via express to complete the transaction.
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I have just tried to get this ITBIS exclusion for a brand new Kia Sportage, but the garage told me that this is a luxury car and this exclusion does not apply. The vehicle needs to be a commercial type to qualify for this. I cannot find anywhere in the free zone regulations anything about this luxuury business, it just says any new vehicle purchased in the local market has ITBIS exemption. I wondered if anybody has experience of this? and confirm if this is true or not.
 
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rubio_higuey

Gold
Feb 7, 2007
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625
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Well, if you buy a car you get to deduct its cost through amortization, over I think 4 or 5 year period. Also ITBIS. But 1% tax on assets. No increase in insurance you will be even able to deduct insurance premiums. So if you operate a company in the DR it may be useful to register the car via the company. However, to register a car via a company just-because without the company really having chance to take advantage of amortization and ITBIS deduction, it's not worth it (because of 1% tax on assets) ... HOWEVER I do not know how 1% tax on assets works on foreign companies...
 
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rubio_higuey

Gold
Feb 7, 2007
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625
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@aareff, try to get DGII statement on the issue at their HQ on Av. Mexico. Don't deal with the branch offices (colectorias), the employees thete usually know very little beyond their operations manual.
 
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aareff

New member
Apr 16, 2011
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Thanks for the advice Rubio. I have decided to buy a VW Amarok, the garage say if it's for a Free Zone company there's no problem removing the ITBIS on this vehicle. If I am successfull I will post the details back here.
 
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