- Thread starter bryan1258
- Start date
Income tax
If you are a US Citizen, you would legally have to report your DR investment income to the IRS every year.
If you are asking about reporting or paying taxes to the DR , I don't know. I play better defense than offense, and I never had the desire to invest here.
If you are asking about reporting or paying taxes to the DR , I don't know. I play better defense than offense, and I never had the desire to invest here.
Laws were passed by Congress & Senate MANY years ago that income from investments is to be taxed. I do not know if it is because no President has signed this law off or whether the law has never been enforced (it would upset too many of the rich,influential people in the DR) but to date interest on investments is NOT taxed by the Dominican Government.
What you notify to your own IRS (or similar) in your home country is up to you obviously but I would advise staying within their law as much as possible. Fortunately, the British Government doesn't require us to pay such taxes ............ YET!!!
gre: ~ Grahame.Dominican taxes should be paid on all income generated from Dominican sources.
Interest from banks and other financial institutions, however, is tax-exempt.
Interest from banks and other financial institutions, however, is tax-exempt.
Do I take it from that comment Fabio that income generated abroad is FREE from Dominican Income Tax? Income from savings & pensions etc?
My (soon to come) retirement pension from HMG certainly comes under the heading of 'Bank' or 'Other Financial Institution' ......... they have been taking & holding my money for YEARS! :cheeky:
irate: ! ~ Grahame.Pensions and Social Security benefits are exempt. I had always thought that article 269 did mandate tax for things like interest from investments abroad as per bank certificates of deposit/deposit accounts BUT that this is hardly ever enforced (because of the difficulty of locating such accounts & certificates
). But maybe this has been superceded by later legislation/potential future legislation, Dr. Guzman is sure to know.Lambada is correct.
Income from financial sources abroad is taxable (Articles 269 and 271 of the Tax Code; Art. 2 of Regulation #139-98). A Dominican or a resident foreigner receiving income from financial investments abroad (stocks and bonds, certificates of deposits, etc.) must pay taxes in the DR on their income from those investments. For the resident foreigner, this obligation only starts three years after obtaining residency. Pensions and Social Security benefits are exempt.
Art. 299-s of the Tax Code exempts from income taxes all interest income received by individuals from Dominican financial institutions.
Income from financial sources abroad is taxable (Articles 269 and 271 of the Tax Code; Art. 2 of Regulation #139-98). A Dominican or a resident foreigner receiving income from financial investments abroad (stocks and bonds, certificates of deposits, etc.) must pay taxes in the DR on their income from those investments. For the resident foreigner, this obligation only starts three years after obtaining residency. Pensions and Social Security benefits are exempt.
Art. 299-s of the Tax Code exempts from income taxes all interest income received by individuals from Dominican financial institutions.
You Are Kidding, right?
You mean that should I get my residency, I would be liable to double taxation here? In that I pay income tax on my investments in the US and would also be liable for taxes here? This would be a major DISINCENTIVE to my obtaining residency, as far as I can see. Is there no exemption for those who retire here? What is the tax rate? Of course, I can't imagine how they could enforce this but I try to be law abiding and would rather take a trip out of the country every year than be liable for additional taxes...... More info, please..
You mean that should I get my residency, I would be liable to double taxation here? In that I pay income tax on my investments in the US and would also be liable for taxes here? This would be a major DISINCENTIVE to my obtaining residency, as far as I can see. Is there no exemption for those who retire here? What is the tax rate? Of course, I can't imagine how they could enforce this but I try to be law abiding and would rather take a trip out of the country every year than be liable for additional taxes...... More info, please..
Mountainannie
Check u.s. tax code, but I think you get credit for taxes paid in other countries. Use 'credit taxes foreign' in yahoo and look at IRS site. Taxes appear limited to higher of u.s. or foreign tax. In other words if you pay 15% in DR but fall in 20% bracket in u.s. You would pay 5% to IRS. If you pay 20% in DR but fall in15% bracket in U.S. You would owe nothing to the IRS.
Check u.s. tax code, but I think you get credit for taxes paid in other countries. Use 'credit taxes foreign' in yahoo and look at IRS site. Taxes appear limited to higher of u.s. or foreign tax. In other words if you pay 15% in DR but fall in 20% bracket in u.s. You would pay 5% to IRS. If you pay 20% in DR but fall in15% bracket in U.S. You would owe nothing to the IRS.
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Yes, you are right there is that deduction. What is the tax rate here in the DR? Where do I find it?
As of January 2009, the tax schedule for individuals is the following:
Up to RD$330,301 annually - exempt
RD$330,301.01-RD$ 495,450.00 - 15%
RD$495,450.01-RD$688,125.00 - 20%
Above RD$688,125.00.01 - 25%
Figures are in Dominican Pesos (RD$).The scale is adjusted for inflation every January.
Up to RD$330,301 annually - exempt
RD$330,301.01-RD$ 495,450.00 - 15%
RD$495,450.01-RD$688,125.00 - 20%
Above RD$688,125.00.01 - 25%
Figures are in Dominican Pesos (RD$).The scale is adjusted for inflation every January.
They don't enforce as such...yet. They rely on what information we provide in our submission of our tax returns. Not sure that 'taking a trip out of country' helps much - you could check with Dr. Guzman but I think 182 days per year of living in the DR constitutes residence.
Art. 12, P?rrafo, del C?digo Tributario: "Son residentes en el pa?s, para los efectos tributarios, las personas que permanezcan en ?l m?s de 182 d?as, en forma continua o discontinua, en el ejercicio fiscal."
Staying in the DR for more than 182 days in any given year, makes you a Dominican resident for tax purposes.
Staying in the DR for more than 182 days in any given year, makes you a Dominican resident for tax purposes.