Small business representatives are optimistic that come January 2019, the Tax Agency (DGII) will begin to implement a new tax regime to benefit the smaller companies, as reported in Diario Libre. The new plan calls for the elimination of the gruesome “anticipo,” or the monthly taxes that companies need to pay depending on the previous years’ income level for the month. The new plan, now known as the Regimen Simplificado Unico, would relieve micro and small business from the payment of the advance income tax.
Small Business Deputy Minister Ignacio Mendez says the measure will benefit companies categorized as micro, or those that have 1 to 15 workers, and assets up of up RD$3 million and sales up to RD$6 million, indexed for inflation every year. Or small businesses that are those with from 16 to 60 workers, assets up to RDR12 million and revenues up to RD$40 million, indexed for inflation every year.
The plan is that already existing micro and small businesses could apply for the new regime, in addition to the new companies that seek their DGII tax registration. But Isaachart Burgos, a former president of the Confederation of Small and Medium Sized Companies (Codopyme), says that the government should grant facilities for companies with arrears with the DGII to regularize their status so they too can switch plans and benefit from the new regime.
The new tax plan seeks to encourage informal businesses to regularize their status as a company. It is estimated that more than half of all businesses in the country are not regulated by the government.
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Diario Libre
23 October 2018
