The Tax Agency has set the record straight. The president of the Dominican Medical Association, Dr. Senén Caba had protested the DGII was implementing a measure that would require physicians to pay more taxes. This week the media in general has been abuzz about the “new taxes.”
Nevertheless, the DGII says that no new taxes are being created. General Norm 04-22 just regularizes distortions that allowed professionals to repeatedly apply income exemptions. The DGII says the norm affects around 7,500 physicians that have more than one wage.
The government explains that the income exemption is RD$34,718. Those making more than that amount need to pay the different taxation scales on the difference. Many public hospital physicians receive more than one paycheck and the practice has been to apply a single RD$34,718 deduction. The new norm establishes the deduction be used only once. The physicians need to pay taxes on the difference.
The DGII says their records show less than 517,000 people have jobs with revenues subject to the norm.
According to the recent resolution DDG-AR1-2022-00002 of the Taxes Agency (DGII) on tax exemption of individuals and adjustments to the Simplified Tax Regime (RST), fiscal year 2022, individuals who have an annual income of up to RD$416,220 are exempt from taxes. There is a 15% tax on the difference for those making RD$416,221 to RD$624,329; 20% for those making between RD$624,329 and RD$867,123, and 25% for those making over RD$867,123.
Meanwhile, spokespersons for the People’s Force (Fuerza del Pueblo) political party say the DGII has not adjusted the tax exemption level for inflation in years as also established by law. The FP says the tax exemption should apply to wages above RD$43,000, not the RD$34,000 level as announced by the DGII.
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10 February 2022