Amnesty Law...Until Mid-January

matt77y

Member
Jan 4, 2003
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no not directly of course. But inflation and currency exchange rates correlate: if the DOP loses value against the USD this will increase the costs of imports and therefore increase inflation.
 

Neargale

Active member
Jul 4, 2013
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I was told that this only applies to property held by a company. Seems strange to me. Can someone confirm please?
 

windeguy

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Jul 10, 2004
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I was told that this only applies to property held by a company. Seems strange to me. Can someone confirm please?
One pays tax annually for property held in a company.

Not sure the original post applies only to property owned in a company. I doubt that is true.
 

Neargale

Active member
Jul 4, 2013
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There are still 2 unanswered questions then, at least in my mind.
1. Does the increase in property value on which I will be taxed accounts for the devaluation of the peso?
2. How do I get property evaluation done for taxes purposes... is it from DGII?

By the way, can I not sell the property on a smaller amount on paper (the 2 contracts method) so that there is not much difference between my purchase price and sell price?
 

cavok

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Jun 16, 2014
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There are still 2 unanswered questions then, at least in my mind.
1. Does the increase in property value on which I will be taxed accounts for the devaluation of the peso?
2. How do I get property evaluation done for taxes purposes... is it from DGII?

By the way, can I not sell the property on a smaller amount on paper (the 2 contracts method) so that there is not much difference between my purchase price and sell price?
I can't find it now, but the law on which this amnesty is based did say that the devaluation of the peso would be used in determining the amount on which any capital gains would be based.

DGII is the one that is calculating new assessment values on which yearly property/company taxes are bases and they calculate any capital gains taxes based on the difference between purchase and sale price.

From what I've been told, at least in the near term, the two contract method will still work, but some investors in more expensive properties are electing to pay the 3% transfer tax on the actual sales price and have that recorded rather than risk a potential 25% captital gains tax on a future sale.
 

cavok

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Jun 16, 2014
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I have just had my property valued for this amnesty. My lawyers, Guzman Ariza, sent the assessor and I assume she was independent.
Yes, an assessor has to do the revaluation for the purpose of the tax amnesty and possible future capital gains tax on future sales. DGII is currently reassessing property values for the purpose of yearly property taxes. I'm planning on doing the same thing.
 

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
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Yes, an assessor has to do the revaluation for the purpose of the tax amnesty and possible future capital gains tax on future sales. DGII is currently reassessing property values for the purpose of yearly property taxes. I'm planning on doing the same thing.
I've always said this is going to be a cash cow for the govt. I could never figure out why they never did it before now.
 

Olly

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Mar 12, 2007
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There are various categories on the DGII web site for the values they use to assess the property values in developments such a Sea horse Ranch etc.
Land is by the SM and is fairly straight forward. building fall into two Categories Un Nivel Aislada , Villas touristicas, that are applicable to the property but I cannot find a definition or description of each. It makes a huge difference to the calculated amount of annual property tax. Can anyone help ?

This is the DGII page : https://dgii.gov.do/herramientas/consultas/Paginas/Cuotas-IPI-.aspx and https://dgii.gov.do/herramientas/consultas/Paginas/Valor-de-inmueble-(IPI).aspx
 

cavok

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Jun 16, 2014
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A friend of mine just got hit with over $30K in capital gains on the sale of his condo because he didn't take advantage of the tax amnesty. I've heard rumors that you can still do it.