The Tax Agency (DGII) says the Foreign Account Tax Compliance Act (FATCA) entered into effect as of Wednesday, 17 July 2019. The agreement seeks to improve international tax compliance between the governments of the US and Dominican Republic.
FATCA is the US law intended to bring unreported foreign income and overseas assets under compliance by the US tax authority, the Internal Revenue Service (IRS). The law is primarily implemented through bilateral agreements, such as the one concluded with the Dominican Republic in 2016 and ratified by the Dominican Congress.
The agreement regulates the exchange of information via an automated system of accounts reportable between the United States and the Dominican Republic. Dominican financial institutions need to identify persons and companies from the United States to send pertinent information to the IRS, including the movement of money, accounts, income and other operations. At the same time, the United States should send to the Dominican Republic information about the US accounts held by residents of the Dominican Republic.
The Ministry of Hacienda has delegated in the director-general of the DGII, Magin Díaz, the application of these measures to avoid double taxation and prevent fiscal fraud. The DGII says training workshops will be offered to assist the financial institutions in complying with the new measures.
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Listin Diario
DGII
23 July 2019