Law No. 03/04 amending the Excise Tax
LAW 3-04
Law whereby Art.367 and 375 of the Law amending Tax Code 11-92
Dominican Republic
CONSIDERING that recent economic difficulties have suffered Republic
Dominican caused by a banking crisis has caused a quasi-fiscal deficit of
considerable magnitude, which to be solved requires raising additional resources;
WHEREAS: The introduction of urgent tax measures necessary to
supplement the income required in the framework of negotiations with IMF
International;
WHEREAS for the State to deal with past deficits without neglecting the
basic needs of the Dominican people, it is necessary to take tax measures
will maintain a proper balance of income and expenses.
CONSIDERING that to achieve a sustainable fiscal balance it is required to establish a
reform consistent with the principles of equity, efficiency and fiscal transparency;
CONSIDERING that at the macroeconomic level the aim of a tax reform aims
increase revenues equitably to ensure sustainability in income
prosecutors;
WHEREAS within the alcoholic beverage sector there is great inequity
payment of the Selective Consumption Tax (ISC) between different taxable categories;
WHEREAS: international trends established for the collection of taxes
Special alcoholic beverages are based on the alcohol content of various types of
drinks;
WHEREAS: consumption trends snuff products in the country, make
required the adoption of a system that preserves the actual collections of the State;
CONSIDERING that this new system should enable the Dominican tax authorities
greater predictability of revenues for consumption concept products
tobacco;
CONSIDERING: That has significantly proliferated practice of counterfeit products
alcohol and snuff in our country, which seriously damages the domestic industry
It produces and sells these goods, while the consumption of these products represents a
serious danger to human health, especially for those who consume products
counterfeit alcohol, because in preparing them is not satisfied with the
minimum standards of manufacture;
WHEREAS this nefarious practice undermines not only public health but
significantly affects tax revenues that different concepts of
taxes are levied by the products of alcohol and snuff, while the
informality that is of such illegal practices make it impossible for the State may
monitor them, while the low price at which these products are marketed
Counterfeit promotes the displacement of demand for counterfeit products, so
is justified by the State promotes the establishment of rules and regulations that do more
effective combating those who engage in unscrupulous counterfeit products
alcohol and snuff for the purpose of seeking the final eradication of this evil.
SEEN: Law No.11-92, which establishes the Tax Code of the Dominican Republic, dated
May 16, 1992.
VISTA: The No.147-00 Law amending the Law No.11-92 establishing the Tax Code.
HAVING SEEN: Decree No. 79-03 dated 4 February 2003 that established the Regulation
for the implementation of Title IV of the Tax Code.
He HAS PASSED THE FOLLOWING LAW:
Article 1. Articles 367 and 375 of the Tax Code are amended, to pray for the
Following way:
"Article 367. The tax base shall be determined as follows:
a) In the case of assets transferred by the manufacturer, except those specified in the
b and c literal, the net price of the transfer resulting from the invoice or document
equivalent, extended by obligated to pay the tax people. It means
net price of the transfer, the value of the transaction, including related services
granted by the seller, such as packaging, freight, finance, invoiced or not
Separately, after deducting the following items:
1. Premiums and discounts granted in accordance with market practice.
2. Tax Debit tax transfer of goods and services.
The deduction of the items detailed above provided they proceed
correspond directly to taxable sales shape and appear as discrimination in the
respective invoice and are properly accounted for.
When the transfer of the encumbered asset is not onerous or in the case of consumer goods
He taxed own elaboration, it is taken as a basis for calculating tax, value
assigned by the responsible joint operations with similar or, failing that,
the market value.
b) When you try alcohol products, alcoholic drinks and beer will be taken as
the volume of taxable liters of pure alcohol each product or transferred
imported by the manufacturer or importer.
c) In the case of cigarettes, it is taken as taxable taxable income the amount of
packs of this transferred or imported by the manufacturer or importer product.
d) In the case of imported goods, the tax is levied on the total resulting from adding
defined for the application of tariff tax value, all tributes to the
import or in connection with it, except for the tax on transfer of goods and
services. In the case of imports of similar domestically produced products, is
will use the same tax base that is used for products manufactured
internally.
Paragraph I. For the purposes of the application of these taxes, when invoices or documents
do not express the market value of the tax authorities may estimate ex officio.
Paragraph II.- When the responsible tax sales made through people
that may be considered economically linked according to the criteria established by the
Regulation, unless proved otherwise, the tax will be paid on the higher price
sale obtained, and the tax administration also demand payment to those other
persons or companies, and subject them to compliance with all the provisions of this Title.
Paragraph III The excise tax paid at importation for the
raw materials and inputs derived products taxed alcohol with this tax,
as included in headings 22.07 and sub-headings 2208.20.30 and 2208.30.10 of the nomenclature of
Harmonized Commodity Description and Coding System, it may be deducted from
tax paid by the final products when being transferred. You can also
deduct the tax paid for the same raw and input materials when they are
removed or transferred from one center to another controlled production to be integrated into
final products subject to this tax. "
"Article 375. The assets whose transfer at the producer or manufacturer or importer is
taxed with this tax, as well as fees and specific amounts with which they are taxed
and whose implementation will take place in the Directorates-General Internal Revenue and Customs,
under Articles 369 and 385.
Paragraph II. This excise tax per liter of absolute alcohol is independent
any other taxes and not be considered as part of the price for the calculation of the base
assessment of any tribute or contribution.
Paragraph III. In the case of alcoholic drinks and beer, the tax amounts selective
to consume applicable to each fiscal year shall be those determined taking into account the
amounts indicated in the table described in paragraph I of Article 375 for the year
appropriate, adjusted for cumulative inflation rate reported by the Central Bank
Dominican Republic, based on the first year of application of this system (2004).
From 2009 the amounts determined for 2008 will remain tight
annually in line with inflation published by the Central Bank of the Dominican Republic.
Paragraph IV. The Directorate General of Internal Revenue shall request the Directorate General
Standards (DIGENOR), a categorization of alcohol products based on their content
absolute alcohol.
Paragraph V. In the case of snuff cigarettes containing a set amount
Specific Excise Tax Consumption per pack of cigarettes
Paragraph VI: When the cigarette packaging presentation is different presentations
indicated in the above table, the amount of the flat tax be applied proportionally.
Paragraph VII: Since 2005, the amounts of the Excise Tax applicable to
cigarettes will be adjusted annually for inflation according to figures published annually by the
Central Bank of the Dominican Republic. "
Section 2. The Attorney General of the Republic may, based on allegations of
injured parties, the confiscation of products of alcohol and snuff products
counterfeit, produced or sold in Dominican territory. Any product of alcohol or snuff
forged, along with the materials and equipment used in the illicit manufacture it shall be seized
and destroyed at the request of the injured party, all without prejudice to any civil action that it
It corresponds to the offender for compensation for damages caused to the
violation of their rights.
Paragraph I: The responsibility for the facts described above extends to
order or have their implementation, and to all those who, knowing the wrongfulness of the act,
take part in it, facilitate or conceal. This provision is extended to those
people who market products counterfeit alcohol and snuff in territories
Dominicans.
Paragraph II: Anyone who considers himself injured by an act of counterfeit products
alcohol and snuff products, you can start the action before the Agency of the Republic.
Article 3: Engages in correctional imprisonment of three months to three years and a fine of fifty thousand
minimum wages, which in relation to alcohol products and products falsifies snuff,
assembly, manufacture, modify, sell or otherwise put into circulation,
brand of alcohol or snuff products duly registered for the purpose of
commercialize in the Dominican market.
Given in the Hall of the Senate, National Congress, in Santo Domingo
Guzman, National District, Capital of the Dominican Republic, six (6) days of
January of the year two thousand and four (2004); 160 years of Independence and 141 of the Restoration.
Jesus Vasquez Martinez
President
Melania Salvador Jimenez Sucre Antonio Muñoz Acosta
Secretary Secretary
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