The visit by a group of experts from the International Monetary Fund (IMF) in July 2024 has a lot of people worrying about just what they will have to say about the proposed tax reform legislation that the Abinader administration has declared as a priority for this year.
The IMF mission will look at such things as tax incentives given to businesses established in the industrial free zones, the special treatment given to couriers that bring in packages from overseas, as well as public spending by the government.
Tax evasion is also a topic at the top of the IMF agenda. Certainly the value added tax, called the ITBIS, will be inspected and recommendations made. The Itbis is the largest contributor to the government coffers, however, with upwards of 30% of the tax revenues. Nevertheless, recent closures of dozens of businesses for evading payment of this tax has some experts talking about as much as 43% evasion of this tax.
The government is pushing to increase the number of taxpaying businesses. Today more than 50% of businesses operate in the informal sector, evading taxes.
The IMF mission will meet with Central Bank top echelons and then with officials at Customs (DGA) and the Tax Agency (DGII).
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Listin Diario
Listin Diario
DGII
24 June 2024