According to the director of the Tax Agency (DGII), Magín Díaz, starting in January 2018, the Simplified Procedure for Taxation will be relaunched so that more small and medium sized contributors can file taxes taking advantage of more simplified procedures.
He said that the Simplified Procedure for Taxation has been in existence for several years but has not been very successful in attracting small businesses. The procedure allows for the paying of the ITBIS only two or three times a year rather than every month, depending on the company’s classification. In addition there is no need for an accountant to do the calculations nor is tax payable on the shares.
He added that despite these benefits less than 10,000 companies are using the system when thousands more qualify to use it. The further simplification seeks to attract a greater number of smaller companies that at present are not meeting their fiscal responsibilities due to the complex nature of the current process.
Diaz explained that they are now working towards a totally online taxation system, and it should be a reality within two years. The complete online procedures will start with the large companies.
He said that the goal for 2017 is to collect RD$384 billion in taxes by the end of the year. Díaz, observed that ITBIS tax evasion continues to be a major challenge. He said that they were looking to reduce delinquent tax losses from 32% to 30%. Annual tax evasion is calculated at RD$2 billion.
Read more in Spanish:
El Dia
29 August 2017
