The 2012 worldwide VAT, GST and sales tax guide

182 D OMINICAN REPUBLIC
ITBIS return periods
Thresholds
Registration
Recovery of ITBIS by
nonestablished businesses
B. Scope of the tax
Monthly
None
(the tax authorities may apply
special provisions to small
taxpayers; see Section C)
No
ITBIS applies to the following transactions:
• Transfer of industrialized goods
• Importation of industrialized goods
• Leasing and rendering of services
C. Who is liable
The following are ITBIS taxpayers:
• Individuals or business entities, whether domestic or foreign, that
transfer industrialized goods as part of their industrial or commercial
activities
• Individuals or business entities engaged in the importation of
goods subject to ITBIS
• Individual or business entities that render services subject to
ITBIS
No turnover threshold applies to ITBIS registration.
Within 30 days after beginning taxable activities, the taxpayer
must notify the tax authorities of its activities.
Small taxpayers. A simplified tax procedure (Procedimiento
Simplificado de Tributación, or PST) applies to small taxpayers.
The PST is based on purchases or income.
The PST based on purchases applies to taxpayers that make
annual purchases of RD$30 million (approximately US$769,231)
or less and that satisfy one of the following conditions:
• They perform commercial activities related to retail sales to
final consumers.
• They perform commercial activities related to wholesale or retail
sales of merchandise if the industrial products (products that are
subject to industrial transformation) are acquired directly and
principally from the national industries or from wholesale sellers
of industrial products.
• They manufacture using raw materials acquired from the local
market, and their sales are made to taxpayers that do not benefit
from the PST.
The PST based on income applies to small taxpayers that satisfy
all of the following conditions:
• They have annual income of not higher than RD$6,532,800
(approximately US$167,508).
• They do not use organized accounting.
• Their income is exempt from ITBIS, more than the 50% of their
income is derived from ITBIS-exempt activities or 100% of the
ITBIS generated corresponds to services rendered that are subject
to withholding.