Itbis

DMV123

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Mar 31, 2010
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I need some help - how do we register a new company who will need to collect and remit ITBIS? We want to learn the process not hire a lawyer to do it for us. Has anyone walked thru the process themselves? Thanks for any help you can give me.
 

cobraboy

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Jul 24, 2004
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You'll need a lawyer. The process in the DR is complex. After 3 times, I still will use a lawyer. What is slam-dunk 24 hours easy in the US is a complex month long+ process in the DR.

You'll need a corporation of foreign company registration to get an RNC number. And forming a new corporation is much easier than registering a foreign company.

Good luck. It is what it is.

There really isn't an easy way.
 

DMV123

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Mar 31, 2010
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Thanks Cobraboy, we have the incorp, the RNC already. I need to register it for ITBIS and then go to TSS to register the employees.

Do you think we can do this part ourselves? I have many years here but have not done this part before. I respect your advice by the way!!!!
 
Feb 7, 2007
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So if you have RNC, you will have to subscribe to OFICINA VIRTUAL

https://www.dgii.gov.do/ofv/seguridad/SolicitarClave.aspx

you select JURIDICO and keep on filling out

In the meantime you go to local DGII office and ask for SOLICITUD DE COMPROBANTES FISCALES (CF)
- para credito fiscal
- para consumidor final
- nota de credito
- nota de debito
- gastos menores
- comprobantes especiales suplidores no-oficiales

Ask for at least 1000 of each one.

BEFORE getting any CF, you will be INSPECTED by DGII to make sure you are a real company. YEARS AGO, you asked for comprobantes fiscales via Oficina Virtual. Not any more for new companies, you have to be checked out (because of previous frauds on the CF issue). You elect whether you will have an authorized print house (imprenta) print the CF or you will use your own electronic system (e.g. computer) - systema electronico.

After that you will be scheduled a visit by DGII. After being checked out out, they enable CF for you and either give you the numbering right away or will enable you to request CF in OFICINA VIRTUAL.

In OFICINA VIRTUAL you request them, and then get them straight away (if the CF are electronic ones). If you will ask IMPRENTA to do CF for you, you will be authorized the number sequences and the print house will print the invoices for you.

The process is easy and straightforward.

After that you are all set. Monthly, you will submit electronically (via Oficina Virtual) - and that is the only way - statement IT1. You will put in ITBIS you paid in purchases and services, ITBIS you collected, sales you made that was not subject to ITBIS, etc. At the end you will present (send) the form, you will be given AUTORIZACION DE PAGO, which will tell you how much you have to pay in ITBIS. You can present IT1 anytime from 1st till 20th of the month, but the PAYMENT is DUE on the 20ths (or next business day if 20th fall on weekend or holiday). You must pay in Banco de Reservas (easiest), online, or at local DGII office if less than 10.000 pesos. Bancod e Reservas is the easiest as they have branches everywhere. You will present AUTORIZACION DE PAGO, money, and off you go.

ALSO, you can start reporting your expenses (and accumulating ITBIS in your favor) since the first day you get your RNC. All purchases for the company, plus travel expenses, representation, diets, all can be deducted and you can start accumulating ITBIS in your favor (ITBIS you pay is deducted from ITBIS you collect and you remit the difference to DGII. DGII does not "return you" any money in ITBIS credits, it stays as electronic credit in your favor). In order to accumulate ITBSI in your favor, you will need to submit electronically (via Oficina Virtual) form 606 for every month. The form has to be submitted by the 15th of each month. There, you list all your expenses and ITBIS you paid.

You can download form 606 here https://www.dgii.gov.do/servicios/envioDatos/Documents/Formato606-2011.zip

You can save the copy of main file for each month (make sure you SAVE the copy on your computer of the final filled-out version for each month) in case you have to resubmit modifications in the future and that way you do not have to enter all the data again.

You HAVE to file form 606 for each month where you want to deduct any expenses. Form 606 serves both for deduction of expenses and for calculating ITBIS credits in your favor. 606 is REQUIRED to be submitted if you want to claim any credit on IT1 for the given month (if you do not submit 606 before claiming ITBIS credit on IT1 you will NOT be allowed by the system to send over IT1).

ALSO, you have to start reporting ITBIS since the first month of you received RNC regardless if you make any sales (you don't yet because you do not have CF yet) but you still AHVE TO submit IT-1 with "0" value (DECLARACION CON VALOR CERO). You CAN claim expenses you already paid if you were given by the supplier/seller COMPROBANTE CON VALOR FISCAL for your RNC.

In that case, fill out 606 for the given month when the CF in your favor was issued by your supplier, submit the file, fill out IT1 with "expenses only".

In ANY GIVEN MONTH where the amount of ITBIS paid is MORE than the amount of ITBIS you collected, your final IT1 will show credit in your favor, and AUTORIZACION DE PAGO will show value $0.00. The next MONTH you have to ENTER the total accumulative from the previous month on the FORM in order for that previous accumulated credit in your favor be reflected in a given month's declaration IT1. If you DO NOT enter the credit on the form, the form will claculate your ITBIS obligation without the accumulated ITBIS credit in your favor. In such case you would need to rectify the declaration via your local DGII office and it takes about 15 days.

One more thing - carefully review IT1 before submitting it after you submit it you CANNOT resubmit that form electronically again. You can only rectify it "manually" via local DGII office (and the fewer the visit to DGII office, the better).

Form 606 you can upload and reupload again if you make a mistake. Beware, if after some time you find out you entered wrong data in 606 and they affected data you subsequently entered into IT1, you will have to re-upload correct 606 and manuallly rectify IT1.

It's not that difficult once you get a gasp on this. I do my reporting myself. A friend of mine in SD paid 1 secretary (who defrauded here) and 2 accountants to do the same job and neither one could do it well. Get to know this system and get reporting done yourself. DO NOT trust in accountants, secretaries, etc. If you have them do the job REVIEW AND APPROVE the reports yourself. But to review and approve, you have to learn. Just ask laurajane what lack of supervision at reporting time and tax time can cause in the future.

I learned myself by trial and error. Had to go through some rectifications. Did go through some pain. At the end it was less painful and less $$$ than paying an accountant especially for the small amount of transactions (we do wholesale just several invoices per month) and especially after seeing how many of the "accountants" here "work". It was getting "used " to the system and how "tax things" work in the DR. Quite different than USA or Europe. Many different answers to the same question, incongruent information, etc. But after you "learn the ropes" it's easy.

One final advice I will give you: if you will issue comprobante fiscales para credito fiscal (tax-deductible CF to your customers) MAKE SURE they report them on their own 606 in the correct month they were issued by you. If they report it in a different month a double tax duty will be created (your reporting plus their reporting) because you report on your own IT1 just the total amount, not the number of invoices you issued, while the customer reports the paid amount plus the number of invoice he was issued by supplier. DGII will say "resolve the issue among yourselves" in case of inconsistency and you will be on your own. So make sure tax-deductible CF you issue are reported by the clients correctly. It's YOUR JOB to make sure THEY report it correctly, and if they don't then DGII will just keep their hands off and leave you in the pile of $h!t.
 
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aarhus

Swimming
Jun 10, 2008
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At the TSS they will give you a list of the documents you need to register a company in the TSS. We actually have that list at the office. We just went through the process of registring in the TSS and are now waiting for their approbacion.
 

DMV123

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Mar 31, 2010
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Rubio - wow now that is a post. Thank you very much. I will review and get the process started, if I need help on anything I will post again. I think I will post my process, success, failures, frustrations etc!

John, thanks I actually went to the TSS office and got the list. One of the issues was to register with DGII and ITBIS first before I can register with TSS............ It is all a learning opportunity!
 
Feb 7, 2007
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You can always PM me if you need to clarify anything. Also, if you will be doing your own reporting, you can call me (we can arrange that via PM) and I will give you a basic walk-through the OFICINA VIRTUAL and brief overview of forms 606 and IT1, so you know "what goes where". They are not quite "straightforward".