Law No. 11-92 Approving the Tax Code of the Dominican Republic.
Law No. 11-92
approving the Tax Code of the Dominican Republic.
THE NATIONAL CONGRESS
ON BEHALF OF THE REPUBLIC
He HAS PASSED THE FOLLOWING LAW:
Law No. 11-92
TAX CODE OF THE DOMINICAN REPUBLIC
TITLE I
GENERAL RULES, PROCEDURES
SANCTIONS AND TAX
CHAPTER I
GENERAL DISPOSITION
Article 1. This Title I lays down general provisions applicable to all taxes
national internal and emerging legal relations of them. Titles II, III, and IV
for the Income Tax, Tax on Transfer of Industrialized Goods and
Services and selective consumption tax, respectively. Each subsequent Title
it shall, for each of the taxes that will be incorporated into this code to the extent that
advance the process of the tax reform.
Article 2. LEGAL FORMS
Legal forms taken by taxpayers do not oblige the tax authorities, which
may be attributed to situations and events that occurred a meaning consistent with the facts, when the
tax law arises that the chargeable event was defined in response to reality. However, when the
operative event is defined basis of the legal form, it must comply with it.
When Paragraph.- legal forms are manifestly inappropriate to the reality of the
taxed facts and this translates into a decrease in the amount of obligations, the tax law
It shall apply regardless of such forms.
Section 3. EFFECTIVE TAX LAW IN TIME. LAW
EXTENSION
The tax law repeals an earlier shall apply to events that have not been
perfected its entry into force, since they require during a
period where completion occurs.
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Paragraph I. The tax laws that establish administrative and procedural rules are
They apply to all situations that corresponds to them existing on the date of its entry into force.
Deadlines or terms of any kind which they may have begun to run and actions and
estuvieren efforts have already started, shall be governed by the law in force at the time of initiation.
Paragraph II Laws restrict themselves to declare or interpret the meaning of tax laws, is
They understand incorporated into these for the purposes of its validity and application, but in no way affect
the effects of any decisions or judgments which have acquired the status of firm and
Irrevocable.
Paragraph III Where no specific provisions in this Code for the solution of a
case shall govern supplementally in the order in which the similar tax laws are indicated, the principles
general rules of Tax Law, Public Law and Private Law that best
avengan to the nature and purposes of tax law; with the exception of repressive sanctions,
which shall only be expressly provided in this Act.
CHAPTER II
TAXABLE TAX OBLIGATION
Article 4. DEFINITION AND CONCEPT
Passive subject of the tax liability is who under the law must fulfill as
taxpayer or responsible.
Paragraph I. The taxable person may fall generally in all natural persons
and legal persons or entities to whom it has under the tax law as a subject of rights and
obligations.
Paragraph II. The tax capacity of natural persons is independent of its ability
civil and limitations thereof.
Article 5. TAXPAYER. CONCEPT
Taxpayer is one for which the chargeable event of the tax liability is verified.
Paragraph.- obligations and rights of the deceased taxpayer will be fulfilled or exercised,
where appropriate, by the successors and legatees heirs, without prejudice to the right to accept
heritage for the benefit of inventory.
Article 6. RESPONSIBLE. CONCEPT
Responsible for the tax liability is who without the status of taxpayer must comply
obligations attributed to it, by express provision of this Code, the Tax Law, the
Regulation or rule of the Tax Administration.
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Article 7. DUTIES AND OBLIGATIONS OF TAXPAYERS AND RESPONSIBLE
Taxpayers and those responsible are obliged to comply with tax obligations and
the formal duties established in this Code or in special rules.
Paragraph I. The exemption from tax liability, does not relieve the taxpayer compliance
of the other formal duties incumbent on it.
Paragraph II The tax obligations may be fulfilled through representatives
legal or agents.
Article 8. AGENTS withholding or collection
They are directly responsible as withholding agents or perception persons or entities
designated by this Code, by regulation or by the rules of the Tax Administration, which
by their functions or because of their activity, trade or profession, engaged in acts or operations
which can carry out at the source from which it originates, retention or perception tribute
corresponding.
Carried out Paragraph.- retention or perception, the agent is the only obliged to pay the sum
and perceived held accountable to the taxpayer by withholdings or perceptions made
unduly or in excess.
Article 9. RETENTION TEST PERFORMED
Withholding agents must provide taxpayers on whose pay the tax,
retention test carried out in the form to indicate this Code, the regulations or standards
Tax Administration.
Article 10. FORCED TO FULFILL THE TAX OBLIGATION
They are obliged to comply with the tax liability, all taxpayers with respect to
which the operative event is verified.
Article 11.- jointly responsible COMPLIANCE
They are jointly responsible for the tax liability of taxpayers:
a) Parents, guardians, curators of the disabled and, in general, the legal representatives;
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b) The presidents, vice presidents, directors, managers, administrators or representatives
Legal and other collective entities with recognized personality persons;
c) Those who direct, manage or have the availability of collective entities and companies
without legal personality, including undivided;
d) The leaders in asset management;
e) The trustees, liquidators and representatives of bankruptcies, with courses and societies
settlement;
f) The partners in the event of liquidation or termination of fact partnerships or companies
in fact and participation;
g) Individuals and officials that provision of the law or of the Tax Administration
They should require or verify compliance with the tax liability when fail to do;
h) The withholding or collection agent for the sums he has not withheld or perceived
According to the law, regulations, tax rules and practices;
i) Third parties that facilitate tax evasions by the negligence or fault;
j) The legal person or entity resulting from the merger, transformation or incorporation of other
legal person or entity for taxes owed by it to date of the respective act;
k) In the corresponding proportion, purchasers of goods affected by the law to debt
tax and acquirers of establishments, enterprises, collective entities with personality
legal or not, being understood by those partners and shareholders of the liquidated companies,
and acquirers of assets and liabilities of them. It will cease, however, the responsibility of
acquirer in terms not determined tax liability:
1) Three months after the transfer operated, provided that the purchaser had
operation statement to the Tax Administration no less than fifteen days before
effect it.
2) At any time the Tax Administration recognized as sufficient
the solvency of the transferor in respect of the tax that may be due. Responsibility for
managers, agents, liquidators or representatives of acquirers of companies
or assets and liabilities is limited to the value of the assets they manage or receive
respectively, unless you have acted fraudulently, in which case they will respond with their
own assets of the total obligation.
Withholding agents or perception that have not fulfilled their obligations to withhold,
perceive and pay the tax will be subject to the penalty for the infringement committed mora,
whose sanction set forth in this Code.
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Article 12.- OBLIGATION OF ADDRESS
For tax purposes it is considered the forced domicile, either:
a) The place of habitual residence;
b) The place where develops its activities in primary form;
c) The place where the principal place of business is located;
d) The place where the event giving rise to the tax obligation occurs;
e) Legal persons may be considered domiciled in the Dominican Republic,
also when they are incorporated under Dominican law, when they have headquarters in the country
their main business, or the effective management of them. The address may be stipulated that
in the law that creates or contained in the founding documents.
Paragraph.- are resident in the country for tax purposes, people who remain
in it more than 182 days, continuously or discontinuously in the fiscal year.
Article 13.- persons domiciled ABROAD
Persons domiciled abroad, if they have a permanent establishment in the country is governed
by the general rules; in other cases, they have the address of your representative or if they do not,
They have an address where the event giving rise to the tax liability occurs.
Article 14.- domicile of choice
Taxpayers and responsible may set a domicile of choice with the express approval of the
Tax administration. The address thus formed is valid for tax purposes.
Paragraph I. In all proceedings before the administration must be entered this address,
which is deemed to exist legally as the Tax Administration does not approve
specifically change it.
Paragraph II The Tax Administration may at any time require the constitution
a new home, when appropriate for their purposes.
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CHAPTER III
MODES EXTINCTION OF TAX OBLIGATION
Article 15.- The tax obligation is extinguished for the following reasons: a) Payment; b) Compensation;
c) Confusion; d) Prescription.
Article 16.- PAYMENT
Payment is compliance with the provision of the tax due and must be performed by subjects
liabilities.
Paragraph Third parties may make payment by taxpayers with compliance
express or implied, subrogated to the rights of the perpetrator to claim reimbursement of the
paid by way of taxes, interest, surcharges and penalties, legal guarantees, preferences and
substantial tax credit privileges established by Article 28 of this Code.
Article 17. -The Tax Administration may discretionally grant extensions for payment
of taxes, which can not exceed a period of one year, when in his view, the causes that justified
prevent the normal performance of the obligation. The extensions must be requested before
deadline for payment and the implied decision not to any appeal.
Paragraph I-. No extension of time for payment of withheld taxes may be granted.
Paragraph II extensions to be granted compensatory interest shall accrue and
late payment set out in Article 27 of this Title.
Article 18.- Compensation
When the assets and liabilities of the tax liability subject are reciprocal debtors of each other,
you can operate including partial or total compensation that extinguishes both debts up to the limit
the least.
Article 19. (Amended by Law 147-00, dated December 27, 2000).
The Tax Administration, on its own initiative or at the request of a party, may offset all or part of
tax liability of the taxpayer, the credit that he has to turn against the perpetrator by
concept of any taxes, interest and penalties paid unduly or in excess,
provided that both debt and credit are true, solid, liquid, enforceable, they relate to
not prescribed periods, beginning with the oldest, and are under the administration of any of
the bodies of the Tax Administration.
Paragraph I. If a taxpayer is entitled to the compensation to which
referred to in this Article shall apply for the same, first, in the body of the Tax Administration
that generated any credit to which he is entitled.
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Paragraph II (Transitory) .- The application of the compensation system established in the
this Article shall become effective for loans and tax debts generated from 1st. from
January 2001.
Article 20.- OF CONFUSION
The tax liability is extinguished by confusion when the active subject of the obligation, as
result of the transfer of goods or rights objects tribute'll stay placed on the
situation of the debtor, producing the same effects as payment.
Article 21. PRESCRIPTION
Expire after three years:
a) The actions of the Treasury to require affidavits, challenge made, require
payment of tax and trade practice estimating;
b) Actions for violation of this Code or tax laws; Y
c) Proceedings against the Treasury in tax repeat.
Paragraph The starting point of the requirements specified in this Article shall be the date
expiry of the deadline for filing affidavit and pay the tax, not be
into account the tax payment date or the filing of the affidavit and the
taxes that do not require the filing of an affidavit, the day following the expiry
the deadline for payment of the tax, unless otherwise specified.
Article 22.- CALCULATION OF TERM
The limitation period shall run from the day following the expiry of the deadline in this
law for payment of the tax liability, without regard to the date of payment of tax or
the submission of the tax return.
Article 23.- INTERRUPTION
The statute of limitations shall be interrupted:
a) For the notification of the determination of tax liability by the taxable
liabilities, is made by the Administration.
b) By the express or tacit recognition of the obligation by the taxpayer, either
tax return, application or in any other form. In these cases it will be the date of
interruption of the declaration, application or performance.
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c) the conduct of any administrative or judicial action to enforce any collection
Debt.
Paragraph I.- prescription Interrumpida not considered previously run time and
you start to run a new term of prescription since it occurred.
Paragraph II The interruption of the limitation produced with respect to one of the debtors
Solidarity is effective against others.
Paragraph III The interruption of prescription only operates on the obligation or debt
tax on the fact that the cause.
Article 24.- SUSPENSION
The course of prescription is suspended in the following cases:
1) For the bringing of an action, be it administrative or jurisdictional headquarters in
However until the resolution or judgment has the authority of an irrevocably
judged.
2) Until two years:
a) By being under the taxpayer or responsible with the obligation to submit
the tax return for, or for submitting it with falsehoods.
b) In the notice to the taxpayer the start of the audit or verification
administrative.
Article 25.- INVOCACION
The provision must be claimed by whoever invokes either to the tax authorities or before
the courts.
CHAPTER IV
BREACH OF TAX OBLIGATION
Article 26.- MULBERRY
Failure to timely fulfillment of tax liability is in arrears to the taxpayer, without
requirement or need for any action by the Tax Administration.
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Article 27.- Without prejudice surcharges or penalties that may result, blackberry enabled for
the exercise of enforcement action to collect the debt and raises full-fledged
obligation to pay, together with the tribute, a compensatory interest of thirty percent
(30%) above the effective interest rate set by the Monetary Board, for each month or fraction
month of default. This interest accrued and payable to the total extinction of the obligation. It is understood
by effective interest rate, the interest itself, plus any charges made by any
concept, more expensive borrowing costs.
CHAPTER V
PRIVILEGES AND GUARANTEES OF TAX CREDIT
Article 28.- Credits for taxes, surcharges, interest and penalties have the right
general lien on all assets of the debtor and have even, in the event of bankruptcy or liquidation
priority for payment of other claims, except alimony due
by law and wages.
Article 29. The Tax Administration shall be entitled to demand real or personal guarantees
when in his judgment existiere risk of default of the tax liability.
CHAPTER VI
Tax Administration
Article 30 of the Tax Administration -organs
It corresponds to the Ministry of Finance, as immediate superior of bodies
Tax Administration, ensure proper application of and collection of taxes and settle in such
quality possible conflicts created by the decisions issued by the Tax Administration.
Paragraph (Amended by Law 166-97, dated 27 July 1997, which unifies
Directorates General Income Tax and Internal Revenue).
The tax administration and enforcement of this Code and other tax laws, it is for the
General Directorates of Internal Revenue and Customs, who for the purposes of this Code
They referred in common, the Tax Administration.
Article 31.- officials DGs, Bodies of the Tax Administration,
expressly authorized by this Code and tax laws will have public faith, regarding
performances involved in the exercise of their own functions and in the absence of law,
it is for the superior quality of that respective invest it.
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Article 32. POWERS OF THE TAX ADMINISTRATION
According to the provisions of this Code, the Tax Administration for compliance
its purposes, shall be vested with the following powers:
a) Faculty regulations.
b) Faculty of inspection and supervision.
c) Faculty of determination.
d) impose penalties Faculty.
Article 33.- DUTIES OF TAX ADMINISTRATION
Likewise, the Tax Administration is obliged to fulfill the following duties:
a) Duty of reservation.
b) Duty to advertising.
SECTION I
FACULTY NORMS
Article 34. The Tax Administration has authority to dictate the general rules
are necessary for the administration and application of taxes, and to interpret
administratively this Code and the respective tax laws and regulations.
Paragraph I. The Secretary of Finance may order such measures as are
for enabling or simplifying the implementation of the provisions of this Code,
Act National Taxpayers Registry and payment of taxes and tax laws and their
respective regulations.
Paragraph II These rules will be compulsory in respect of taxpayers,
responsible for compliance with tax obligations and third bodies and the
Tax administration.
Article 35.- It corresponds to the tax authorities issue general rules particularly on the
following matters: averages, ratios and other indices that serve as a basis to estimate
trade taxable income; submission of affidavits and prepayments of taxes;
establish and abolish withholding agents, perception and information; instruct on books, records,
documents and records that special and compulsory must bear taxpayers and others
responsible for paying the tax and third parties on formal duties of each other; and any
another convenient for good administration and tax collection measure.
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Article 36. The general rules issued by the Tax Administration, provided that
they comply with the constitution and laws, they are not subject to appeal in administrative headquarters or headquarters
court, by main road; but they may be challenged by way of exception to the
courts when they contravene the Constitution and this law.
Article 37. These rules shall take effect from the date of its publication in a newspaper of
national circulation, or on the date specified therein is stated and are not subsist while
amended or repealed.
Article 38 CONSULTATIONS
The Tax Administration may be consulted, by whom he has a personal and direct interest,
on the application of the law to a particular situation.
Article 39.- The questioner shall state clearly and precisely all the constituent elements
the situation of the consultation, so it may indicate and substantiate their opinion
respect.
Article 40. The presentation of a query does not relieve the consultant of timely compliance
their tax obligations.
Article 41 will not effect the response to a query evacuated on the basis of inaccurate data
provided by the consultant.
Article 42 The answer to the consultations shall only be binding on the
Tax Administration regarding the consultant and will not be subject to any appeal.
Article 43. The Tax Administration may change its criteria regarding a matter
consulted. This new approach should be collected in a rule published in accordance with the
Article 37 shall take effect for all generators made pending on the date of such
publication or after it.
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SECTION II
FACULTY AND SUPERVISION INSPECTION
Article 44. The bodies of the tax authorities have broad powers of
inspection, control and research through its competent officials in order
they are complied with the provisions of this Code, and other laws, regulations and standards
sunsets tax charge. These officials, in the exercise of these powers, enjoy faith
public and are specifically empowered to:
a) practice inspections in offices, commercial and industrial establishments, media
transport or premises of any kind that are not exclusively dedicated to the private dwellings
the taxpayer. To perform these inspections in confined areas and private homes,
You will be required search warrant issued by the competent court.
b) Require taxpayers or responsible display their books, documents,
commercial correspondence, goods and merchandise.
c) Review and examine the books, documents, goods and inspected goods and take
security measures for their conservation in the place where they are, even if not
corresponds to the taxpayer's residence, being under the responsibility of that State.
d) Seizing or retain documents, goods, merchandise or objects in violation when the
seriousness of the case requires. This measure should be duly substantiated and will hold up
both the administration deems it necessary for the resolution of the ongoing investigation,
rising an inventory of seized, a copy of which will be sent to the affected.
e) the preparation of inventories, control your clothing or confront at any time
inventories with the actual stock of taxpayers.
f) Require taxpayers and responsible with special books or records of their
negotiations and operations that preserve and display as a means of enforcing compliance
tax, for a time not less than 10 years.
g) Provide taxpayers, responsible and third grant certain
vouchers, within the same ten-year period in which they must keep their documents and
vouchers.
h) Require that accounting records are supported by relevant vouchers.
Its probative value for tax purposes will depend on the faith that they deserve.
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i) To request information and affidavits to taxpayers and responsible and information
to third parties related to facts in the exercise of their activities have contributed to make or
They have gotten to know and display documents concerning such situations. This
power shall be exercised in accordance with the following limitations:
1) The Tax Administration may not require reports to ministers of religion in
As for matters concerning the exercise of professional ministry, nor those
by express statutory provision they may invoke professional secrecy regarding the
fact concerned or are bound to secrecy of correspondence
correspondence or communications in general.
2) The Tax Administration may demand reports nor relatives
ancestors or lineal descendants.
j) To request information to banks or credit institutions, public or private, which
They shall be required to provide them.
k) Require all individuals and especially institutions or officials
public enterprises and authorities in general all data and records deemed
required for tax audit.
l) Quoting taxpayers or responsible, or to any third party that management judgment
aware of the facts in question, to answer or report, orally or in
written questions or requirements deemed necessary for inspection or audit.
m) detain any person who is caught committing tax crimes as the
urgency of the case requires it, must be placed the arrested person available to the authority
competent.
SECTION III
FACULTY OF DETERMINING THE OBLIGATION
TAX
Article 45. The Tax Administration has the authority to determine the obligation
tax, which shall be exercised in accordance with the provisions of this Code and the rules
respective special.
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SECTION IV
ADMINISTRATION FACULTY sanction
TAX
Article 46. The Tax Administration has the power to impose sanctions, which will be
applied in accordance with the rules and procedures.
SECTION V
DUTIES OF TAX ADMINISTRATION
Article 47. RESERVE DUTY.
(Amended by Law 147-00, dated December 27, 2000). Statements and
Tax Administration information obtained from taxpayers, responsible and third
by any means, in principle shall be confidential and may be used for the purposes
own of that administration and where authorized by law.
Paragraph I-. That duty does not apply booking cases where it becomes a
obstacle to promote transparency of the tax system, as well as when required by
laws, or courts in ordering procedures on taxes, compulsory collection of
these, criminal trials, judgment of alimony and family or dissolution of regime
matrimonial.
the publication of statistical data which, by their generality, do not allow also exempted the
individualization of statements, information or people.
Paragraph II. When a taxpayer has paid the taxes established in Titles II,
III and IV of this Code, shall be entitled to request and receive from the Tax Administration,
information on the value of each of the taxes paid on these securities for others
Taxpayers who participate in the market in which the former operates.
Article 48. DUTY OF ADVERTISING
The acts of the tax authorities are in principle public.
Interested parties or their representatives and their lawyers have access to the respective performances of the
Tax Administration and may consult justifying such quality and identity; except
respect of those parts or documents that the Administration considers by reasoned decision
keep in reserve, or that provision of this Code or by special rules so determined,
as well as those that by their very nature must be kept in reserve.
Article 49. When a judgment of the Tax Administration provide general interest, resolutions
Individuals may be disclosed to the public by publication in a newspaper of
national circulation or other suitable means.
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CHAPTER VII
FORMAL DUTIES
SECTION I
Article 50.- DUTIES OF FORMAL TAXPAYERS LIABLE AND
THIRD PARTIES
Taxpayers, managers and third parties are required to facilitate the tasks of determination,
inspection, investigation and collection carried out by the Tax Administration and especially to meet
the formal duties set out below:
a) Keep records and ledgers mandatory and additional or special
they are required. The entries in ledgers should generally be tailored
that operation. These books must be completed in Spanish.
b) Adjust their accounting and inventory preparation and assessment practices
accounting established in laws, regulations and general rules issued for that purpose and reflect clear
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