Wednesday, August 12, 2020

Itbis Collections in D.R. Increase in First Semester of Year

By on August 6, 2017

Editor’s note: The following article originally appeared in the August 3 print edition of Caribbean Business.

By El Dinero

The Dominican Republic’s General Directorate of Internal Revenue (DGII by its Spanish initials) reported that in the first semester of the year, it collected RD $332 million more in Tax on the Transfer of Industrialized Goods & Services (Itbis by its Spanish acronym) than in the same period last year, which represents growth of 0.7%.

The agency said that beginning Jan. 1, through the implementation of Article 16 of Law 690-16, which sets the general budget of the state, businesses under the ProIndustria regulations began to advance 50% of the Itbis, which is similar to a sales tax, at the moment of importation of goods used in their activities.

In this context, the DGII pointed out that if this effect is corrected, adding to the agency the advance of Itbis on imports of ProIndustria enterprises, the collection of this tax would be RD $2.812 billion from January-June 2017. This is more than that of the first semester of last year, which equals a similar 6% increase to the growth observed in the economy for the first semester of the year.

(File Photo)

Meanwhile, the Tax on Real-Estate Transaction has reflected an interannual growth of 6.2%, or RD $155.4 million more than was collected last year, without including extraordinary payments carried out in 2016, which added up to RD $265.5 million.

With these data, the DGII provided complete and accurate information on the evolution of Itbis collections and real-estate transactions.

“This administrative management, based on a strategy of control and facilitation of compliance, has had as its main elements the coordination and exchange of information with the General Directorate of Customs, as well as massive and preventive inspections to validate the purchases and sales reported by the taxpayers,” the agency said in a statement.

The DGII noted that as a result of tax management, revenues increased by 12.3% in the January-June 2017 semester, which was a performance greater than that of the Dominican economy, accounting for about RD $22.051 billion more, equivalent to an increase of RD $4.578 billion.

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