It is a well-documented fact that tax evasion has been deeply rooted in the Hispanic nations of Latin America ever since 1492. It came from Spain, and grew and prospered in the distant colonies of the Spanish empire.
Currently, many governments are trying to turn the tide via electronic, digital and technological means. In the Dominican Republic, the government is betting on Electronic Billing Law 32-23. The law requires all commercial institutions, large, medium, or small to eventually report electronically all transactions.
Initially, according to the head of the Tax Agency (DGII), Luis Valdez, the 621 largest tax contributors in the Dominican Republic makeup 75% of all monies collected by the agency, will have 12 months to fully institute electronic invoicing. This method of digital transparency is now obligatory.
Of course, part of the reasoning behind the legislation is to save paper and other printing expenses, but the core issue is to catch tax evaders.
During a luncheon of the American Chamber of Commerce held in Punta Cana, Valdez explained that the big companies have been divided into three groups and each group has a “due date” to meet the requirements of the new law. The first is on 15 January 2024; the second is 15 March 2024, and the last is 15 May 2024.
Smaller companies and micro-entities have until 15 May 2026 to comply.
Incentives to sign up early range up to RD$2.0 million for large companies to RD$25,000 for micro companies.
Valdez said 20 companies have been authorized to install the programs needed for this electronic factoring.
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Diario Libre
4 September 2023