Common errors when applying tax withholdings and how to avoid them
Applying tax withholdings correctly is not always as straightforward as it seems. Many taxpayers make mistakes unknowingly, which can result in penalties or undue payments. To avoid this, the first step is understanding what withholdings are and how they work. Tax withholdings are deductions applied by certain payers—known as withholding agents—to
Comprehensive Guide to the Tax Obligations of a Limited Liability Company (S.R.L.) in the Dominican Republic
Establishing a Limited Liability Company (S.R.L.) in the Dominican Republic involves not only corporate and administrative advantages, but also strict compliance with tax and fiscal obligations. Below is a detailed summary of the main tax responsibilities that every S.R.L. must comply with in order to operate regularly and efficiently.
How to Register as a Taxpayer in the Dominican Republic
Registering as a taxpayer in the Dominican Republic involves enrolling in the Registro Nacional de Contribuyentes (RNC), a mandatory process for all individuals or legal entities engaging in economic activities in the country. This registration ensures proper compliance with tax obligations before the Dirección General de Impuestos Internos (DGII). The RNC is a database
Intellectual Property in the Dominican Republic: Legal guide to protecting Trademarks, Patents, and Copyrights
This article provides a comprehensive overview of the legal framework governing intellectual property in the Dominican Republic, aimed at guiding entrepreneurs, creators, and businesses—both local and international—on how to effectively protect their intangible assets. It outlines the main protection mechanisms available, details the registration process before the National Office of
Invention Patents, Utility Models, and Industrial Designs: How to Protect Innovations in the Dominican Republic
Protecting innovations is essential to fostering creativity, investment, and competitiveness in the marketplace. In the Dominican Republic, Law No. 20-00 on Industrial Property establishes various legal mechanisms to protect inventions and designs. These mechanisms include invention patents, utility models, and industrial designs, each aimed at protecting different types of innovation.
Tax withholding in the Dominican Republic: A complete guide by tax type for businesses and professionals
Tax withholding or retention is a key tool in the Dominican tax system that allows the tax authority, General Directorate of Internal Taxes (DGII), to ensure the early collection of taxes, both in local and international transactions. Understanding how withholdings work is essential for businesses, independent professionals, and other taxpayers
How to establish a Free Zone company in the Dominican Republic: Steps and legal Considerations
Free Zones in the Dominican Republic represent one of the most dynamic pillars of the national economy. According to figures from the National Free Zones Council (CNZFE), this regime contributes approximately 67% of the country's total exports, generates over 190,000 direct and indirect jobs, and, as of the end of
How to choose the ideal business entity for Doing Business in the Dominican Republic
In the Dominican Republic, various business entities are available for establishing companies, each with its own characteristics, specific advantages, and particular limitations. The choice of the type of commercial entity will depend on multiple factors that must be carefully evaluated. Key aspects to consider include the required number of partners, the
The ITBIS in the Dominican Republic: A complete guide for businesses and professionals
The Impuesto sobre Transferencias de Bienes Industrializados y Servicios (ITBIS) is one of the fundamental pillars of the Dominican tax system. Similar to the Value Added Tax (VAT) in other countries, this indirect tax applies to the commercialization of industrialized goods and the provision of services, serving as a key
Free Zones in the Dominican Republic: A complete guide to benefits, requirements, and opportunities
Free zones have been a key driver of economic development in the Dominican Republic, attracting foreign investment, generating employment, and strengthening exports. This sector has boosted industries such as textiles, medical device manufacturing, pharmaceuticals, BPO services, and technology, contributing over USD 8 billion in exports in 2024. Additionally, it has