Condo RNC number

Mack

Active member
Jan 10, 2009
362
34
28
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.
 

aarhus

Long live King Frederik X
Jun 10, 2008
4,412
1,987
113
Rnc

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.
 

Duece

Active member
Mar 11, 2004
154
59
28
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.
 

Mack

Active member
Jan 10, 2009
362
34
28
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.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,359
252
83
www.drlawyer.com
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.
 

aarhus

Long live King Frederik X
Jun 10, 2008
4,412
1,987
113
Re

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.