The Tax Agency (DGII) announced it will postpone the application of the Rule 04-2022 on Incorporation, Permanence, Exclusion and Affidavit in the Simplified Tax Regime (RST) until next year. The norm will now apply for the fiscal year from 1 January to 31 December 2022, so that taxpayers may adjust their payment expectations in advance. Payments of this tax would be due in February 2023.
The Presidency reports that the decision is intended “to bring peace of mind to the Dominican people and to the liberal professional sectors and legal entities under the RST.”
The Presidency explains that the DGII will carry out a communications effort to explain the norm. The norm seeks to correct a distortion that allowed taxpayers registered in the RST regime to receive a double exemption. The DGII says that this affects the principle of equity that must prevail in the tax administration. Liberal professions were applying more than once the tax wage exemption.
The DGII reports there are 20,500 taxpayers registered in the Simplified Tax Regime, divided into 16,500 liberal professionals and 4,000 legal entities.
According to the estimates made by the tax administration based on data analysis and investigations made by DGII technicians, it has been determined that the total number of liberal professionals who took advantage of the double exemption is 6,200 persons. Of this number, 4,400 are physicians.
In the case of the doctors impacted by the correction of the distortion, the calculations indicate that they have an average annual income of RD$3.3 million, both for being salaried and as independent professional services.
The DGII director, Luis Valdez Veras met on 8 February 2022 with the board of the Dominican Medical Association (CMD) and its president, Dr. Senen Caba who had very vocally rejected the eliminating of the deductions.
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Presidencia
N Digital
Diario Libre
15 February 2022