Tax & Accounting Blog

Dominican Republic – Tax Administration Issues New VAT Withholding Measure

Indirect Tax, VAT-GST Management November 16, 2010

The Directorate General of Internal Revenue (DGII) is requesting all companies to be withholding agents of the ITBIS (Value Added Tax) when purchasing taxable goods from individuals issuing invoices with an eventual supplier number. A withholding agent will be required to withhold 75% of the ITBIS (VAT).

This measure is established by General Resolution 08-2010, published yesterday to strengthen the control mechanisms that support tax collection. This will become effective on 1 December 2010.