In order to strengthen fiscal transparency in the Dominican Republic, the General Directorate of Internal Taxes (DGII, in Spanish) published Law 155-17 against Money Laundering and Financing of Terrorism.
The DGII, which is the agency responsible for the collection and administration of taxes at a national level, has published that, in accordance with the provisions of the Tax Code modified by Law No. 155-17 against Money Laundering and the Financing of Terrorism, all legal persons or entities without legal personality such as trusts, investment funds or similar entities (except individual Limited Liability Companies), are required to declare the Ultimate Beneficiary Owner.
The Ultimate Beneficiary Owner is understood as the natural person who exercises the final effective control, or are the owners of a legal entity or an entity without legal personality. It is also a natural person for the benefit of the person who carries out a transaction, even when the individual does not appear as the owner or as the person who formally controls that transaction.
The DGII also notified all taxpayers, with or without profit, about the changes and obligations in the Annual Affidavit Reports, known as the IR-2 Form, as well as the Registration and Data Update Reports (RC -02). The updated form is now available in the virtual office of the Tax Administration.
Updated forms
- Form of Affidavit of Registration and Update of Data of Legal Entities (RC-02): the identification of the Ultimate Beneficiary is added
- Form of Affidavit of Registration and Update of Separate Assets (RC-03): the identification of the Ultimate Beneficiary is added
- Tax Return Form for Corporate Income Tax (IR-2): annex H-1 and H-2 Ultimate Beneficiary Identification and Data Update are added
- Income Tax Informative Return Form for Non-Profit Institutions (ISFL): attachment C Identification of Members and Ultimate Beneficiary for Non-Profit Institutions is added.
What do taxpayers have to do?
Companies must provide a copy of the identification or certified and apostilled passport if it is a foreign person and identify who is the ultimate beneficiary, including personal information such as names, address, telephone number and any other relevant information.
Important dates
Taxpayers with fiscal closing dates to September 30, 2017 must present the updated form for the presentation and declaration of the Ultimate Beneficiary as of October 1, 2017.
Companies with other fiscal years must present this information with their next income tax return or when they hold their annual meetings.
TMF Group experts in the Dominican Republic and in more than 80 countries are always up to date with local regulations and can help you with the registration obligations of the Ultimate Beneficiary Owner. Contact us for more information.