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FACILITIES AND TIME EXTENSION FOR TAX PAYMENTS AND DECLARATIONS

septiembre 2, 2020 by Franco
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Resolution No. DDG-AR1-2020-00002 issued by the Internal Revenues General Direction (“DGII”).

Considering the State of Exception and Emergency declared on July 20, 2020by the Presidency for 45 days, the Tax Administration has issued different provisions granting facilities for tax compliance as facing the economic impact of Covid-19. In this sense, on August 31, 2020, the DGII adopted the provisions indicated below.

Purpose of the Resolution:

  1. Maintain August 31, 2020 as the deadline for (i) presentation and payment of Income Tax (ISR) of single-owner companies with fiscal closing on March 31, 2020; and, (ii) presentation of the Informative Affidavit of Non-Profit Institutions with fiscal closing as of March 31 of the current year.
  2. For companies and sole owner businesses with fiscal closing on March 31 and June 30, 2020, including those that will present their affidavit in November of this year, a payment agreement is granted to settle the Income Tax in two (2) equal and consecutive installments, starting on August 31, 2020.
  3. Maintain the effective and enforceable deadlines established for the installments of the payment agreements executed prior to March 19, 2020, that benefits from the automatic extension of four (4) months, provided for in communications 36-20 and 76-20.
  4. Provide individuals and undivided estates with non-commercial and industrial activities with a payment exemption of the second advance of income tax generated by the affidavit (IR1) for fiscal year 2019, with income not exceeding RD $ 8,700,000.00.
  5. Taxpayers who do not apply for this exemption, may request a total or partial exemption of advances, if they present and demonstrate a significant reduction in their income during 2020 compared to 2019.
  6. For those taxpayers covered by the Simplified Tax Regime, the following deadlines are maintained for the payment of the following fees : (i) On October 30, 2020: Payment of the third installment for legal persons (RS2) and purchases (RS3). (ii) On December 31, 2020: Payment (i) of the second installment for individuals (RS1) and the agricultural sector (RD4); and, (ii) of the fourth installment for legal persons (RS2) and purchases (RS3).
  7. Extend to September 11, 2020 the payment of the second installment of the Real Estate Property Tax (IPI).
  8. Extend until September 30, 2020 the validity of expired motor vehicle license plates from March 19.
  9. Postpone the Motor Vehicle Circulation Tax for the period 2020-2021 (Label) until November of this year.

This document contains general information on the subject of reference. Its purpose is merely informative and therefore does not constitute a legal opinion of Franco. It is recommended to seek legal advice for each particular case.