Proposed Asset Tax

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windeguy

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Jul 10, 2004
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Very Interesting . Google translation of the above article:

SANTO DOMINGO. The Executive Branch submitted to the Senate a bill that proposes the establishment of "a special tax regime with a transitory nature" to regularize the payment of taxes before the Directorate General of Internal Taxes (DGII) through the declaration or revaluation of personal property and real estate, as well as the possession of deposits in national or foreign currency.

The initiative, which would be applied based on the Tax Code and the Money Laundering Law, states that "individuals, legal entities and undivided estates that declare or revalue, voluntarily and exceptionally, may benefit from this regime."

In the proposal, introduced on September 3, 2018, assets that may be subject to declaration or revaluation are described as: the possession of national or foreign currency by deposit declaration in an authorized entity, the properties over which it has not been formulated no requirement for payment by the Tax Administration "may be revalued" and personal property located in the country, including assets.

The bill proposes to establish a tax rate on the total value of declared assets, as a single and definitive payment, as follows: possession of national or foreign currency at 5.0 percent of the declared value; 3.0 percent real estate; declaration of inventories 5.0 percent, revaluation of real estate 3.0 percent on the difference between the revaluation value and the revaluation of assets that entails a decrease in assets, 5.0 percent of the declared value.
 

drstock

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Oct 29, 2010
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A five per cent tax on possession of currency would lead to a hell of a lot of currency leaving the country, in my opinion.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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Gonna be a lot of overstuffed mattresses and guard dogs.
 

cavok

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Jun 16, 2014
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Just another lame-brained, half-baked idea that some bureaucrat thought he'd run up the flag pole and see if anyone salutes it.

I'll be withdrawing USD on Monday and telling the bank why.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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Keep your powder dry. The shortage of dollars will drive up the exchange rate.
 
Sep 20, 2003
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You can still make multiple transfers of less the $10,000 without question, as far as I know - obviously not all at the same time.

I was referring to the future. I suspect that the government is probably anticipating what will happen and has already further capital controls ready to put in place.
 

Mauricio

Gold
Nov 18, 2002
5,607
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A five per cent tax on possession of currency would lead to a hell of a lot of currency leaving the country, in my opinion.
It’s a 5% one time only tax on not earlier declared possessions, so in fact a cheap way to get even with non-declared possessions.

The reason that there are hardly any dollars in large amounts to get for over a year already has much to do with this measure that was advertised half 2017.
 

drstock

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Oct 29, 2010
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It’s a 5% one time only tax on not earlier declared possessions, so in fact a cheap way to get even with non-declared possessions.

The reason that there are hardly any dollars in large amounts to get for over a year already has much to do with this measure that was advertised half 2017.

That makes more sense, but still seems a good reason to get any spare currency out of the country before they start making their calculations!
 

cavok

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Jun 16, 2014
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It’s a 5% one time only tax on not earlier declared possessions, so in fact a cheap way to get even with non-declared possessions.

The reason that there are hardly any dollars in large amounts to get for over a year already has much to do with this measure that was advertised half 2017.

The article seems to indicate that you'll have to pay 5% on any reassessed valuation. So, if they double the assesed value on your condo, won't you have to pay 5% on that?

What about bank accounts - are they considered declared posessions? And if you open a USD bank account here, do you only pay 5% on your initial deposit and nothing after that?
 

JD Jones

Moderator:North Coast,Santo Domingo,SW Coast,Covid
Jan 7, 2016
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Just another lame-brained, half-baked idea that some bureaucrat thought he'd run up the flag pole and see if anyone salutes it.

I'll be withdrawing USD on Monday and telling the bank why.

It came from the Presidency office. Along with a amnesty offer for folks who haven't been paying.
 

kg4jxt

New member
Mar 28, 2014
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new tax on bank deposits?

An article September 7 in Diario Libre said the Executive branch has sent to the Senate a proposed law to impose a 5% tax on all bank deposits. Did anyone else see this? Are they serious? I have perhaps let too much cash accumulate in my Banco Popular account and I am getting it out this month. Will the rumor of such a law not cause a run on deposits? I presume this may have the effect of depleting dollar reserves and inflating the peso, at least in the short term. My neighbors said, "it will never pass the Senate". But I am not inclined to wait and see.

They also propose a 3% property tax, but it is not clear if this is to be imposed at the time of property transfer - which I think is already standard practice - or if they are proposing to make it a more frequent collection. My property is "agricultural" and therefore has no annual property tax at this time. I am all for paying my fair share, it will be great when they collect my extra property tax and use the money to pave the road(!) - but I am not interested in being penalized for the convenience of keeping money on deposit here. :bandit:
 

kg4jxt

New member
Mar 28, 2014
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Oh, my new thread is moved to this three-day-old thread. I guess some others DID see that news! Well, yeah, I have to get that money out of the local bank. Too bad, really.
 
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