Andres Aybar, president of the American Chamber of Commerce, has criticized the 1.5% tax on gross sales. The tax is deducted from the year end profits of companies with sales of over RD$6 million. The government requires companies to make monthly payments. If the company does not declare more profits than taxes paid, the money is not returned at the end of the 12 month period, though, and serves as a minimum tax. Aybar said that the tax is holding back the economy and investments. He said it also is an incentive for companies to to disguise sales. The lower sales volume shown on their statements in turn affects the companies’ ability to borrow.
