On Friday 15 January,the Directorate General of Internal Taxes published Resolution No. DDG- AR1-2021-00001, which provides for the exemption of Income Tax Advances for the periods corresponding to January, February, March and April 2021.
What are the announced facilities?
1) Exemption of Income Tax (ISR) advances, in relation to the periods January, February, March and April 2021 inclusive, to those legal entities or sole proprietorships that are micro and small enterprises (MSMEs).
MSMEs are taxpayers whose gross sales amount presented in the “total income” box of their Income Tax Return (IR-2) for the 2019 tax year does not exceed RD$58,314,600.00 per year.
2) Taxpayers who do not apply for the above exemption, but who present a significant reduction in their income during 2020 with respect to 2019, and the months January-April 2021 with respect to the months of 2020, may apply for total or partial exemption of advance payments as provided for in Article 314, paragraph IV of the Tax Code. This request must be made by e-mail at least fifteen (15) days before the expiry of the same, using the form established for this purpose, justifying the reasons.
3) Exemption for taxpayers in the tourism sector that have their corresponding operating licence up to date with the Ministry of Tourism, with a breakdown in said Resolution of the establishments that have said exemption, with the proviso that those that are not listed will have this exemption as soon as they are up to date with the Ministry of Tourism.
4) Exemption from the payment of the third advance payment of Income Tax (ISR) generated by the Sworn Statement for the fiscal period 2019, to those individuals and undivided estates with non-commercial and industrial activities, with the obligation to file the Sworn Statement of this tax (IR-1); provided that the total income presented does not exceed RD$ 8,700,000.00. Those who do not apply for exemption, but present a significant reduction, as well as MSMEs, may apply for such exemption under the same guidelines mentioned above.
