Results 1 to 8 of 8
  1. #1
    Regular
    Join Date
    Jan 2009
    Posts
    328
    Post Thanks / Like

    Default Condo RNC number

    I heard from a fairly reliable source that once a Condo association gets an RNC number the Dominican Republic tax authorities come looking for tax from owners in the condo who rent out their apartment. I have been told that this is one of the reasons many condo associations do not obtain an RNC number. Does anyone have any experience with this? Any relevant information regarding the downside/upside of obtaining an RNC number would be appreciated.
    Thanks in advance,
    Mack.

  2. #2
    Bronze
    Join Date
    Apr 2010
    Posts
    549
    Post Thanks / Like

    Default Rnc

    Quote Originally Posted by Mack View Post
    I heard from a fairly reliable source that once a Condo association gets an RNC number the Dominican Republic tax authorities come looking for tax from owners in the condo who rent out their apartment. I have been told that this is one of the reasons many condo associations do not obtain an RNC number. Does anyone have any experience with this? Any relevant information regarding the downside/upside of obtaining an RNC number would be appreciated.
    Thanks in advance,
    Mack.
    Hahaha. Genneraly yes there is a big downside of having an RNC number. You then have to report monthly, annualy and pay a lot of tax. Those who dont have an RNC number dont seem to have to pay anything. Simple as that. I can imagine it is not a good idea for a recidencial condo association to get an RNC number. But I would think you could ask at the DGII about it. I have heard that income from renting out your apartment is tax free.

  3. #3
    Regular
    Join Date
    Mar 2004
    Posts
    62
    Post Thanks / Like

    Default

    I would like to know the scoop on this. I've heard that without an RNC number an association is not a legal entity. Also, with an RNC number the association pays no taxes on insurance etc.

  4. #4
    Regular
    Join Date
    Jan 2009
    Posts
    328
    Post Thanks / Like

    Default

    Rereading my original post I realise that there might be some confusion. I'll try again.
    I heard from a fairly reliable source that once a Condo association gets a tax exemption code from the Dominican Republic tax authorities, they then come looking for tax from owners in the condo who rent out their apartment. I have been told that this is one of the reasons many condo associations do not obtain a tax exemption code. Does anyone have any experience with this? Any relevant information regarding the downside/upside of obtaining a tax exemption code would be appreciated.
    Thanks in advance,
    Mack.
    Duece, I think you are wondering about the same thing. Yes this is all done legally through a lawyer and an accountant and then the Association is not liable for taxes. But like I said I've heard that the tax authorities start to bother the owners for tax.

  5. #5
    DR1 Expert
    Join Date
    Jan 2002
    Posts
    2,230
    Post Thanks / Like

    Default

    A condo is exempt from taxes with regards to its operations as an association.

    However, individual condo owners are liable to pay personal income tax on any income they receive from condo rentals. That's the law. Here and everywhere.
    Fabio J. Guzman
    Guzman Ariza
    Attorneys-at-Law
    Sosúa, Santo Domingo, San Francisco de Macorís, Cabrera
    Las Terrenas, Samaná, Bávaro (Punta Cana) and La Romana
    Dominican Republic


    [email protected]


    Website

    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.

  6. #6
    Regular
    Join Date
    Jan 2009
    Posts
    328
    Post Thanks / Like

    Default

    Sr Guzman,
    Thanks for your reply.
    Mack.

  7. #7
    Bronze
    Join Date
    Apr 2010
    Posts
    549
    Post Thanks / Like

    Default Re

    Quote Originally Posted by Fabio J. Guzman View Post
    A condo is exempt from taxes with regards to its operations as an association.

    However, individual condo owners are liable to pay personal income tax on any income they receive from condo rentals. That's the law. Here and everywhere.
    How does the owner report that income if he owns it as an individual? And if it is in the name of a company does the rent then have ITBIS added when the company collects rent with a Comprobante Fiscal ? I heard that residencial rent was exempted from ITBIS. If you have it in a name of a company you would want to include the rent as an income as you liable for 1% asset tax.

  8. #8
    DR1 Expert
    Join Date
    Jan 2002
    Posts
    2,230
    Post Thanks / Like

    Default

    Residential rentals are exempt from ITBIS.

    As an individual, you would declare any income to the DGII.
    Fabio J. Guzman
    Guzman Ariza
    Attorneys-at-Law
    Sosúa, Santo Domingo, San Francisco de Macorís, Cabrera
    Las Terrenas, Samaná, Bávaro (Punta Cana) and La Romana
    Dominican Republic


    [email protected]


    Website

    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.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •