Law No. 557-05 on Tax Reform
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Law No. 557-05 on Tax Reform and amending Acts Nos 11-92 of 1992.; 18-88
1988; 4027 1955; 112-00 and 146-00 of 2000.
THE NATIONAL CONGRESS
In the Name of the Republic
Law No. 557-05
WHEREAS under the Stand-by Agreement signed between the government
Dominican and International Monetary Fund, one of the commitments implies
making several structural reforms, within which the looms large
Tax Reform;
WHEREAS addition, the Dominican Republic is
currently it is undergoing a process of global liberalization and trade integration, highlighting
within that process the conclusion of the Free Trade Agreement with the United States and
Central America;
WHEREAS as a result of the implementation of the Treaty
Free Trade Agreement with the United States and the Central American countries, known
as DR-CAFTA, offsetting the revenue losses associated with becomes necessary
this treaty, like the elimination of the exchange commission and other income disappear
as a result of this process;
WHEREAS, in this context, customs revenue experience
a significant reduction, so it is necessary to strengthen and increase collections
internal sources;
CONSIDERING that to achieve the objectives is essential
the adoption of new tax figures and modification of others, in order to improve
auditing and collection capacity of the tax administration in order to promote
decreased levels of evasion and increase revenue from these sources.
Having regard to the Law No.11-92 of May 16, 1992, which creates the Tax Code;
Having regard to the No.112-00 Law of 29 November 2000, which establishes a tax
the consumption of fossil fuels and oil products;
VISTA Law No.146-00 of December 27, 2000, on Reform
Tariff and Fiscal Compensation;
Having regard to the No.147-00 Act of December 27, 2000, on Tax Reform;
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Having regard to the Law No.12-01 of 17 January 2001 amending Laws
Tariff Reform and Tax Reform Nos.146-00 and 147-00, respectively, both 27
December 2000, which, in turn, modify the Law 11-92 of May 11, 1992
(Tax Code) and 14-93, of 26 August 1993 (HS Code) and amendments thereto;
HAVING SEEN Law No.3-04, of 9 January 2004 amending Articles 367 and 375
the Tax Code;
Having regard to the Law No.92-04 of January 27, 2004, which creates a Program
Exceptional Risk Prevention for Financial Institutions;
Having regard to the No.288-04 Act of September 28, 2004, on Tax Reform;
Having regard to the Law No.18-88 of January 5, 1988, which establishes an annual tax
called "Tax Sumptuary Housing and Urban Lots".
He HAS PASSED THE FOLLOWING LAW:
ARTICLE 1 paragraph 2.1 of paragraph VIII of letter e) are replaced and the literal k)
Article 287 of the Tax Code, as amended by the Act No.288-04, September 28
2004, to say as follows:
"Article 287, paragraph VIII. Joint Accounts Asset.
(2.1) Any amount spent during the fiscal year to repair the goods
the account shall be allowed as a deduction for that year ";
"K) Losses: Losses suffer damages legal persons in their exercises
economic be deductible from the profits obtained in the exercises
Subsequent to the immediate losses, without this compensation
it may extend beyond five (5) years, in accordance with the
following rules:
1) In no case shall be deductible in the current period or future,
losses from other entities with which the
taxpayer has made any reorganization or
those generated in non-deductible expenses.
2) Legal persons may only deduct your losses at a rate of
twenty percent (20%) of the total amount thereof per year.
In the fourth (4th.) Year, that twenty percent (20%) will be deductible
only up to eighty percent (80%) of net income
taxable for that year. In the fifth (5th.) Year,
This maximum is seventy percent (70%) of net income
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taxable. The portion of twenty percent (20%) of losses
deducted in a year it may not be deducted in later years or
will cause any reimbursement by the state. deductions
may be made only when the affidavit
the income tax. "
Paragraph I. are exempted from this provision legal persons
submit losses in the statement of income tax of its
first fiscal year. The losses were generated at the first exercise
tax may be offset up to 100% in the second fiscal year. In
If they could not be fully compensated, the remaining credit
It will be compensated according to the mechanism set out in this literal.
Paragraph II: Taxpayers who file their annual tax losses
income tax may request the total or partial relief from
limits percentages of losses and net taxable income established in the
literal present. The Tax Administration may accept this request provided
that, in his view, there are reasons of force majeure or extraordinary nature that
justify the extension of the percentage of losses liable to be
offset. "
Article 2. paragraph 2.2 of subsection VIII Repealed literal e)
Article 287 of the Tax Code.
Article 3. paragraphs are amended and paragraph 5 is added and
paragraph II, Article 296 of the Tax Code, as amended by Law 288-04, 28
September 2004, to say as follows:
"Article 296. TAX RATE OF INDIVIDUALS
1. Income until RD $ 257,280.00, exempt;
2. The surplus RD $ 257,280.01 to $ 385,920.00 to RD, 15%;
3. The surplus RD $ 385,920.01 $ 536,000.00 to RD, 20%;
4. The surplus of RD $ 536,000.01 to $ 900,000.00 RD, 25%;
5. The surplus of RD $ 900,000.01 on, 30%.
"Paragraph II The maximum marginal rate of thirty percent (30%)
established in this Article shall be reduced annually until it reaches the
Twenty-five percent (25%) of net taxable income, applying the following
calendar:
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1) For fiscal year 2007, twenty-nine percent (29%)
2) For fiscal year 2008, twenty-seven percent (27%)
3) For fiscal year 2009, twenty-five percent (25%). "
Article 4. Article 297 of the Tax Code, as amended hereby amended by
Law 147-00, dated December 27, 2000, to read as follows:
"Article 297. TAX RATE OF CORPORATIONS
Legal persons domiciled in the country paid for the fiscal year
2006, thirty percent (30%) on their net taxable income. For the purposes of the
application of the levy referred to in this article, are considered as persons
legal:
a) capital companies;
b) Public companies for their income of a commercial nature and
other entities referred to in Article 299 of this title, by
different to those declared exempt income;
c) Undivided estates;
d) partnerships;
e) Joint ventures;
f) Irregular societies;
g) Any other form of organization not expressly provided whose
feature is obtaining profits or benefits, Unreported
expressly exempt from this tax.
"Paragraph I. The rate of thirty percent (30%) established in this
Article will be reduced annually up to twenty-five percent (25%) of the
net income, using the following schedule:
1) For fiscal year 2007, twenty-nine percent (29%)
2) For fiscal year 2008, twenty-seven percent (27%)
3) For fiscal year 2009, twenty-five percent (25%)
"Paragraph II The rate set forth in the preceding paragraph apply to all
articles establishing rates in Title II, except for sections 306 and 309
the Tax Code ".
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Article 5. Article 306 of the Tax Code, as amended hereby amended by
No.147-00 laws of December 27, 2000, and No.92-04 of January 27, 2004, to read
as follows:
"Article 306.- interest paid or credited ABROAD
"Whoever pays or credits into account interests of Dominican sources
from loans contracted with foreign credit institutions,
They must withhold and pay to the Administration as single payment and
definitive tax 10% of these interests. "
ARTICLE 6. The first part is amended and paragraphs a), b), c), d) and e)
paragraph I of Article 309. The in-fine part of Article 309 was also amended the Code
Tax, as amended by the No.147-00 Laws of December 27, 2000, No.12-01, the
January 17, 2001, and No.288-04, of 28 September 2004, to say the
Following way:
"ARTICLE 309. DESIGNATION OF RETENTION AGENTS
"The Tax Administration may establish that legal persons
act as withholding agents when paid or credited into account other
legal persons not tax exempt income of up to a limit of retention
one percent (1%) of the total amount paid or credited. The administration
Tax will regulate the characteristics that must meet the withholding agent. The
same rule provide that all qualified as high taxpayer
compliance in the payment of their tax obligations, on that basis, be
He designated retention agent other legal entities, will in turn free
retention of one percent (1%) of the rents that are paid or
credited to account by other legal entities. The amounts withheld under
of this paragraph shall be compensable as payment on account against any
or advance tax payments according to the procedure established in this law.
"Public entities act as withholding agents when they pay
or credited into account natural persons, undivided estates and people
legal and other entities not exempt from tax, the amounts for
concepts and ways established by the regulations.
"Legal entities and single owner businesses should act as
withholding agents when they pay or credit account to individuals and
undivided, as well as other entities not exempt from the tax, except to
legal entities, the amounts for the concepts and forms established by the
regulation.
"These deductions will be considered a down payment or final payment,
as appropriate, and will proceed in the case of subjects resident, established or
domiciled in the country.
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"Paragraph I. The retention provided in this article will be in the
percentages of gross income listed below:
a) 10% of the amounts paid or credited into account concept
rental or lease of any movable or
property, as payment on account;
b) 10% of the fees, commissions and other remuneration and payments
for the provision of services generally provided by individuals,
unexecuted as employees, whose provision requires the
direct intervention of human resources; as a payment on account;
c) 15% on prizes or winnings from lotteries, fracatanes, lotuses,
quizz lotus, electronic games, bingo, horse racing, benches
bets, casinos and any type of prize offered through
promotional or advertising campaigns, as final payment;
d) 5% on payments made by the state and its agencies,
including state enterprises and decentralized agencies and
self-employed, individuals and legal entities, for the acquisition of goods and
services in general, not in a dependent relationship with
as payment on account;
e) 10% for any other income not contemplated in
these provisions; as payment on account.
"Dividends and interest received from financial institutions
regulated by the monetary authorities; as well as the National Development Bank
Housing and Production Associations Savings and Loan, the
fund managers pension defined in the Act No.87-01 of 9
May 2001 creating the Dominican Social Security System and Funds
Pension that these administered, the market intermediary companies
securities, investment fund managers and securitization companies
No.19-00 defined in the Act of May 8, 2000, they are excluded from the
preceding provisions of this Article, without prejudice to the provisions of
Article 308 of this Code. "
Article 7. Article 314 of the Tax Code, as amended hereby amended by
No.147-00 laws of December 27, 2000, No.12-01, of January 17, 2001, and No.288-04,
of September 28, 2004, to read as follows:
"ARTICLE 314. PAYMENT OF ADVANCES
"Since fiscal 2006, all taxpayers Tax
Income that are legal persons and single owner businesses whose effective rate
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taxation is less than or equal to 1.5% (one point five percent), they will pay their
the advances on the basis of twelve equal monthly installments,
resulting from applying 1.5% to the gross income declared in fiscal year
previous. Legal entities and single owner businesses whose effective rate
Taxation is greater than 1.5% (one point five percent), pay
monthly in advance twelfth of the tax paid on their
previous statement.
"Paragraph I. In the case of individuals and undivided estates the
Advances shall be calculated on the basis of 100% of the tax paid on their
previous year and paid in the months following percentages: 50% six months;
ninth month and twelfth month 30% 20%.
"Paragraph II the amount of gross income or tax paid
basis of which are calculated, as the case established in this Article, of
the amounts payable by way of advances, balances are deducted in favor
contained in the declaration to proceed, if it had applied for
compensation or reimbursement.
"Paragraph III If at the end of the fiscal period to which they relate advances
thus calculated, a balance result for the taxpayer as a result of excess
the payment of advances on Income Tax paid, the taxpayer may
offset this balance with the tax on the assets established in the Articles of
401 to 408 of the Tax Code added by Section 18 of this Act, without prejudice
the taxpayer's right to seek reimbursement in accordance with the provisions
for these purposes by this Code.
"Paragraph IV Taxpayers who demonstrate a significant reduction
of their income in the current period may request, at least fifteen (15) days
before maturity, total or partial exemption to make the advance provided for in
this article. The Tax Administration may accept this request provided that,
his view, there are reasons of force majeure or extraordinary nature justifying
the impossibility of making such payments.
"Paragraph V. Individuals will not pay the advance fixed in
this article when all of its income tax paid
income by way of retention. When only part of the income of the person
physics has paid the tax by way of retention, payment will be applied
on the portion of tax that it has not been subject to retention.
"Paragraph VI In the case of legal persons referred to in Article 297,
whose income comes from commissions or markups
regulated by the state, the basis for calculating advances will be the total of their
gross revenue from commissions or margins established by
the competent authorities. Similarly, the dedicated intermediary
exclusively to sales of goods of others, they will pay an advance of one point
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five percent (1.5%) of this Article, calculated on the total of your
Revenue from commissions obtained in that activity.
"Paragraph VII.- not pay the deposit of one point five percent (1.5%),
established in this Article natural persons who develop
commercial and industrial activities, provided that the annual income from
such activities is equal to or less than five million pesos (RD $ 5,000,000.00).
These individuals are welcome to special regime will be established in the
Regulation implementing the income tax. "
Article 8. Article 342 of the Tax Code is amended to read the
follows:
"ARTICLE 342.- ZERO RATE FOR EXPORTERS
"There are taxed at zero rate the goods exported. The
exporters themselves are entitled to deduct any other obligation
tax, the value of tax charged when acquiring goods and services
intended for export activity. If there remain a balance in favor of the exporter
this will be returned by the DGII, in the manner prescribed in this code and
regulations.
"Paragraph In case a company does not export its entire
production, when you can not be discriminated extent to which services
intended deduct tax have been destined for export activity,
such deduction shall be made in the appropriate proportion to the amount of their
exports on total operations in the period in question. The
Directorate General of Internal Revenue can check the proportion of the
production exported with shipping documents deposited by the
exporter in the Directorate General of Customs, among other methods. "
Article 9. Table exemptions numeral 1) paragraph II have been amended and
Article 343 of the Tax Code, as amended by Laws No.147-00, December 27
2000, and No.12-01 of January 17, 2001, to say as follows: "
"Article 343. EXEMPT GOODS
1) The transfer and import of goods listed
Below they are exempt from tax provided for in Article 335.
In the case of an exempt asset is part of a sub-item of
Tariff Schedule of the Dominican Republic to include other
goods, the latter will not be considered exempt.
"Paragraph II are exempt from this tax and import
acquisition in the local market of raw materials, packaging materials, supplies,
machinery, equipment and spare parts for the manufacture of medicine for use
human and animal, when they are acquired by the laboratories
pharmaceuticals ".
ARTICLE 10 paragraphs III and IV of Article 343 of the Code are repealed
Tax, as amended by No.147-00 Act of December 27, 2000.
ARTICLE 11 paragraph 5 of Article 344 of the Tax Code is amended
No.147-00 amended by the Act of December 27, 2000, to read as follows
way:
"ARTICLE 344. EXEMPT SERVICES.
5) Services of land transportation of people and cargo services
of stevedoring, I bring closer, towage, pilotage, loading and unloading
provided at ports and airports;
Article 12. Article 345 of the Tax Code, as amended hereby amended by
No.147-00 law of December 27, 2000, to read as follows:
"ARTICLE 345. GROSS TAX
The tax period is sixteen percent (16%) of the value of each
taxable transfer and / or the service performed on it. "
Article 13. Article 350 of the Tax Code, as amended hereby amended by
No.147-00 law of December 27, 2000, to read as follows:
"ARTICLE 350. TAX DEDUCTIONS EXCEEDING THE ROUGH
"When the total tax deductible by the taxpayer out
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higher than the gross tax, the resulting difference will be transferred, as a deduction,
the following monthly periods; this situation does not relieve the taxpayer of the
obligation to submit his affidavit as required under the regulations.
"Exporters reflect tax credits advance in goods and
services purchased for its production process, have the right to request reimbursement
or compensation thereof within six (6) months.
"For compensation or reimbursement of credit balances indicated in
this Article, the Tax Administration has a period of two (2) months
counted from the date of receipt of the request, in order to decide on
the same. If in the indicated period of two (2) months the Tax Administration has not
issued its decision on reimbursement or compensation requested, the silence of the
Administration have the same effect that the authorization and the taxpayer
compensation may be applied against any tax, according to the procedure
that indicated below. The application shall be made first to the body of the
Where credit administration originated.
"The taxpayer will perform the compensation presenting Administration
Tax affidavit and / or tax assessment against which
offset, specifying the balance in favor and annexing copy of the application received
or reliable information on the time elapsed from the date of receipt of
application. In addition, copying or reliable information be attached on the
affidavit and copy the balance was generated or reliable information about
the affidavit of post-filing application
compensation. Should compensation be made against any
tax liability arising to the Directorate General of Customs (DGA), the subject
concomitantly person must notify the Directorate General of Taxes
Internal (DGII) compensation. The taxpayer can never compensate for the
credit against a tax withheld on behalf of another taxpayer. The Tax Administration may
regulate the procedure described above compensation, to
simplify it or do it electronically, always respecting deadlines
mentioned in this article, the automatic nature of compensation to the
administrative silence, the requirement to initially apply to the organ in which
credit and power to compensate originated from any other obligation
tax, including ITBIS and excise taxes, with the
except for taxes withheld by third parties.
"The same treatment will be granted to the producers of exempted goods
Tax Transfers of Industrialized Goods and Services.
"The fact that compensation or refund occurs not
It affects any powers of inspection, supervision and
Administration determination on credit balances, overpayments or
excess, nor be construed as a waiver of its power
sanctioning culpable determine if differences incriminate the
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responsibility of the exporter or producer of exempt property ".
ARTICLE 14.- paragraph III of Article 367 of the Tax Code is amended
No.147-00 amended by the Laws of 27 December 2000, and No.3-04, January 9
2004, and a paragraph IV is added to that article, to read as follows:
"ARTICLE 367.-
"Paragraph III The Excise Tax paid at the time of
import raw materials and inputs derived products
alcohol and cigarettes subject to this tax, included in items
22.07 and subheadings 2208.20.30, 2208.30.10 and, as well as tariff heading
24.03 of the Harmonized System Description and Coding
Goods may be deducted from the tax paid by the final products to
time of transfer. It will also be evident in the case of alcohol the
tax paid for the same raw materials and supplies when they are
removed or transferred from a production center to another to be controlled
integrated into final products subject to this tax. "
"Paragraph IV Exporters reflect advance tax credits
in the procurement of goods that are part of the production process, they have the right
to seek reimbursement or compensation thereof within six (6)
months. For compensation or reimbursement of credit balances, the Administration
Tax has a period of two (2) months from the date of
application, in order to complete the verification procedure and decide on the
same. If in the indicated period of two (2) months the Tax Administration has not
issued its decision on reimbursement or compensation requested, the silence of the
Administration have the same effect that the authorization and the taxpayer
compensation may be applied against any tax liability, according to
terms and the procedure referred to in Article 350 thereof. The fact that
produce compensation or reimbursement does not undermine in any way the
powers of inspection, control and determination of the Administration
balances in favor, undue or excess payments, nor be construed
a waiver of its power to impose penalties in case of determining differences
culpable to incriminate the exporter's responsibility ".
ARTICLE 15.- the amounts stated in the table are modified equity portion
Article 375 of the Tax Code, as amended by Laws No.147-00, December 27
2000, No.3-04, of January 9, 2004, and No.288-04, 28 September 2004.
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ARTICLE V 19.- A new title is added to the Tax Code and will
integrated as follows:
"TITLE V
TAX ASSETS
"ARTICLE 401. SUBJECT OF TAX. It establishes a tax
per annum on the assets of legal entities or individuals with business only
owner.
"ARTICLE 402. TAXABLE ASSETS. For purposes of this tax
taxable asset means the total value of assets, including so
expresses the properties contained in the balance sheet of the taxpayer, not
adjusted for inflation and then applied the deduction for depreciation,
amortization and allowances for doubtful accounts. Excepted from the base
This tax tax equity investments in other companies,
land located in rural properties by type,
farms and developed taxes or advances.
"ARTICLE 403. TAXABLE ASSETS FOR INSTITUTIONS
FINANCIAL AND ELECTRICITY COMPANIES. Intermediation Entities
Financial, defined in the Monetary and Financial Law 183-02, December 3
2002; and the National Bank for Housing Development and Production,
Administrators of Pension Funds defined in the Act No.87-01 of 9
May 2001 creating the Dominican Social Security System and funds
pensions they manage; intermediary companies market
securities, investment fund managers and securitization companies
19-2000 defined in the Act of May 8, 2000; as well as companies
power generation, transmission and distribution defined in the General Law
Electricity No.125-01, of July 26, 2001, will pay this tax
basis of their total assets, net of depreciation, as it appears in your
balance sheet.
"ARTICLE 404. TASA. The tax rate will be one percent (1%)
year, calculated on the total amount of taxable assets.
"ARTICLE 405. LIQUIDATION AND PAYMENT. The settlement of this tax
shall be made in the same affidavit that Income Tax
present the taxpayer. Payment of tax, where applicable, will be made in
two installments, the first in the same deadline for payment
income tax and the second within six (6) months from
the maturity of the first installment.
"Paragraph I. The failure to file the affidavit and payment
the deadline shall be punished according to the provisions of title
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I, the Tax Code.
"Paragraph II In case of omission of information concerning assets in
presentation of the affidavit, the DGII estimate of the amount of active job
taxable, it shall recover the tax and apply the penalties provided for in
Title I of the Tax Code.
"Paragraph III Where the tax authorities had
It extended the date for payment of income tax, shall be considered
this tax automatically extended for the same term. "
"ARTICLE 406.- EXEMPTIONS. They are exempt from this tax
legal persons, pursuant to this Code, special laws or
contracts approved by Congress, are fully exempt
Income Tax.
"Paragraph I. The regulations defined by the Internal Revenue investments and
capital intensive, classified by type of business, or those investments
which by the nature of its activity have an installation cycle, production and
start more operations than one (1) year, or not made by new companies,
may benefit from a temporary exclusion of its assets in the tax base
This tax, provided they are new or reputedly capital
intensive. The company must demonstrate that its assets qualify as new or
They come from a capital-intensive investment according to the criteria defined
in regulation.
"Paragraph II companies seeking to benefit from the exclusion of
that is, they must apply to the DGII at least three (3) months before the
scheduled for filing your annual tax return date. The Tax Administration may
deny this temporary exemption reasoned decision, which is likely to
be appealed to the Tax Dispute Court within fifteen (15) days
from the date of notification to the taxpayer or responsible. The resolution
granting the temporary exemption will determine the length of it, which will be
up to three (3) years, extendable when there are justified reasons,
in the opinion of the Tax Administration. This excludes cases in which
ownership of assets has been transferred under mergers or have been
transferred by one or other legal or natural persons who have enjoyed full or
part of this exemption.
"Paragraph III Taxpayers filing your tax losses
income tax of the same exercise, may request a temporary exemption
tax assets. The Tax Administration may accept this request
provided that, in his view, there are reasons of force majeure or extraordinary nature
to justify the failure to make such payment.
"ARTICLE 407. CREDIT AGAINST THE INCOME TAX.
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The amount paid in respect of this tax is regarded as a credit against
the corresponding income tax for fiscal year declared.
"Paragraph I. If the amount paid by way of income tax
it is not less than the tax assets to pay, shall be considered extinguished
the payment obligation of the latter.
"Paragraph II.- In the event that after applying the credit concerns
This article existed a difference to be paid for tax
assets, as the amount it exceeds the amount of tax on income,
taxpayer will pay the difference to the Treasury in two installments provided for in
Article 405 of the Code, divided equally.
"Article 408 (Transitory) .- The taxpayers of this tax
whose fiscal lockup occurs in December 2005, they must pay, in the year
2006, the annual tax Real Estate and Urban Land Plots
Edified, established in the Law No.18-88 of February 5, 1988, and
modifications, according to the procedure of valuation of commercial property
No.288-04 established in the Act of 28 September 2004. The amount of
tax paid by this concept is regarded as a credit against tax
on for the fiscal 2006 period assets whose return must
presented in 2007. "
ARTICLE 20. Articles 401, 402, 403 and 404 of the Code are renumbered
Tax as Articles 409, 410, 411 and 412.
ARTICLE 21.- are amended paragraphs a) and b) of Article 2, and adds a
paragraph to Article 3 of Law No.18-88 of February 5, 1988, Tax Housing
Sumptuary and Urban Lots, as amended by Law No.288-04, September 28
2004 on Tax Reform, to say as follows:
• are amended paragraphs a) and b) of Article 2, to govern as follows:
a) Those for housing and commercial activities belonging
to individuals whose value including the site where they are
builded exceeds five million pesos, adjusted annually
inflation;
b) Urban Lots ".
• A paragraph is added to Article 3.
"Paragraph shall also be exempted from this tax housing and solar
belonging to taxpayers that are legal entities or individuals with business
single owner, subject to the tax on assets provided in Articles 401 and
following the Tax Code ".
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ARTICLE 22.- The registration or registration of all motor vehicles,
excluding agricultural tractors, newly entering the country and the consequent
issuance of the first plate and issuance of certificate of ownership (registration) by the DGII
will pay a tax ad valorem seventeen percent (17%) on the CIF value of the vehicle. "
PARAGRAPH I. The National Treasury shall record revenues
this tax in revenues for the Wealth Tax.
PARAGRAPH II is exempt from payment of 17% on the CIF value of
imports of motor vehicles in the share capital of this article of this law and payment
10% set in Article 7 of Law No.4027, of 14 January 1955 on the value
transfer of fulfilled within two years (2) that establishes the Law No.57-96, 6
December 1996.
ARTICLE 23. In addition to the tax on fossil fuels and derivatives
No.112-00 oil provisions of the Act of 29 November 2000, provides a tax
Selective 13% ad valorem on domestic consumption of these fossil fuels and the resulting
Petroleum.
PARAGRAPH I. The taxable amount of this tax is the selling price fixed by
the Ministry of Industry and Trade, through resolutions enacted for the purpose
weekly, less taxes, distribution margins and detail and transportation commission.
PARAGRAPH II This tax must be withheld and paid to the DGII by
individuals or processing companies, refiners, distributors Supply or products
taxed or those that are self-sufficient directly from them.
PARAGRAPH III The obligation to pay this tax generated by the first
internal transfer, sale or purchase for self-supply of the taxed products. The pay
It must be made on the first working day of each week, based on the fixed prices week
above by the Ministry of Industry and Trade.
PARAGRAPH IV The DGII established through regulations the
procedure for payment of this tax for companies that make direct purchases for
self-supply.
Paragraph V. Fossil fuels and oil derivatives intended
power generation to be used by power generating companies
sell power to the interconnected national grid will be exempt from this tax.
PARAGRAPH VI Tax Crime was punished as use for purposes other than
which originate the exemption provided in this Act on fossil fuels and derivatives
Petroleum.
ARTICLE 24.- The assets classified under tariff subheadings
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described below will be taxed at rate "0" in the tariff schedule established in the
Annex one of the No.146-00 Act of December 27, 2000, once it enters into force of the Treaty of
Central American Free Trade and the United States of America (DR-CAFTA for short
English).
Alfredo Pacheco Osoria,
President
Severina Gil Carreras, Josefina Alt. Mars Duran,
Secretary Secretary
GIVEN in the Hall of Sessions of the Senate, National Congress, in Santo
Domingo, National District, Capital of the Dominican Republic, eight (8) days
December two thousand and five (2005); 162 years of Independence and 143
Restoration.
Andres Bautista Garcia,
President
Enriquillo Reyes Ramirez, Pedro José Alegría Soto,
Secretary. Secretary.
Note: Version before publication
