Let's say there is a US corporation based in the US that performs services on a subcontractor basis for other US based companies in the US, and all payments are between parties in the US.
Let's say that company hired Dominicans living in the DR to actually perform those services and paid them wages, maybe even set up an office where the services would be performed, via internet and telephone.
Part 1:
Would this be legal?
Part 2:
If so, what portion then of the US based company's income, if any would be subject to ITBIS?
A) All of it?
B) None of it?
C) The monthly payments made to cover immediate expenses of doing business in the DR, including rent, bills and payroll?
D) Moot because you can't do that anyway and nobody will believe you that there is any US based company in existence?
Part 3:
Now, if there is any part of the company's income that does not need to have ITBIS paid on it, what proofs and registrations would/should this company maintain to prove that it is not evading taxes?
Thanks in advance all for your insights
Let's say that company hired Dominicans living in the DR to actually perform those services and paid them wages, maybe even set up an office where the services would be performed, via internet and telephone.
Part 1:
Would this be legal?
Part 2:
If so, what portion then of the US based company's income, if any would be subject to ITBIS?
A) All of it?
B) None of it?
C) The monthly payments made to cover immediate expenses of doing business in the DR, including rent, bills and payroll?
D) Moot because you can't do that anyway and nobody will believe you that there is any US based company in existence?
Part 3:
Now, if there is any part of the company's income that does not need to have ITBIS paid on it, what proofs and registrations would/should this company maintain to prove that it is not evading taxes?
Thanks in advance all for your insights