The objective of Law No. 46-20, on Transparency and Equity Revaluation (the “Law”) is to provide a specific period, so that taxpayers, exceptionally and voluntarily, declare, revalue and enter the Tax Administration, a fixed tax, established to encourage this transparency process in the aforementioned term.

Rate: 2%

A single and definitive payment of 2% of the total of the declared goods is established. The tax base will be determined at the time of declaration or revaluation according to provisions of the Law.

Once the assets are included in the taxpayer’s assets, they will be subject to ordinary tax obligations, and future transfers will be based on the value at which the assets have been declared.

Temporary regulation that allows a single payment of 2%

Deadline for application: 90 days (180 days in modification project)

In order to benefit from the special tax regime, an application must be submitted within a period of 90 calendar days, counted from the enactment of the Law. The proposed amendment to the Law extends this period to 180 days.

Assets that can be declared or revalued

o   National or foreign currency in a regulated and authorized entity, according to its nominal value.

o   Financial or securities instruments issued by any entity, and they will be recorded according to their acquisition cost (registered shares, bonds, credits agreed in contracts, trusts, promissory notes or other instrument that confers the right to be valued).

o   Personal property located in the country, which will be valued according to the market value (acquisition value less depreciation established in the Tax Code).

o Real Estate after providing the document, duly legalized, that justifies property rights according to the corresponding legislation and whose declaration or revaluation will be made in accordance with the market value. The market value will be supported by documents that allow the validation of the acquisition cost or, failing that, by means of an appraisal carried out by an accredited professional.

o   Inventories of goods available for sale or production, according to documentation that allows to validate their due acquisition.

o   All assets whose revaluation leads to a reduction of assets (accounts receivable from partners, movable and immovable property, among others). Any good expressed in foreign currency will be valued in national currency in accordance with the exchange rate for the purchase of the spot market, according to the publication of the Central Bank of the Dominican Republic.

Personal property, real estate, investments, inventories and all types of assets susceptible of valuation, as well as certain tax debts

Excluded assets

o   Goods or assets resulting or acquired as a result of illicit activities

o   Currency deposited in foreign financial entities and securities held in jurisdictions of countries classified as high risk or non-cooperative by the Financial Action Task Force (FATF). Countries that are in the process of cooperation are exempt from this classification.

Tax Debts

Tax debts that have been determined may be settled by taxpayers by paying taxes and up to one year of interest, without considering late fees. If the debt is in the process of appeal before the administrative jurisdiction, pure and simple withdrawal is required by the taxpayer.

Payment facilities are extended to taxpayers who have been omitted or who have made corrections