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Details

  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/25/2013

Dominican Republic - Expanded scope of transfer pricing rules 

January 25: Law No. 253-12 made changes to the Dominican Republic’s tax law—specifically with respect to the scope and application of Article 281 of the tax law concerning related-party transactions.

Previously, the transfer pricing provisions only applied to domestic companies in which foreign capital investment was more than 50% of the share capital and if the transactions were with:


  • Related parties located abroad
  • Individuals, companies located in low tax or “tax haven” jurisdictions
  • Related parties benefiting from the free trade zone regime

With the 2012 tax law changes, the scope of Article 281 was expanded to apply to all companies or individuals having related-party transactions.


The legislative changes also:


  • Redefined the definition of “related parties”
  • Addressed when companies or entities are considered to be a “decision unit”
  • Set forth rules for advance pricing agreements (APAs)
  • Provided further guidance as to low tax / tax haven jurisdictions

Read a 2012 report (English) [PDF 235 KB] or 2012 report (Spanish) [PDF 929 KB] prepared by the KPMG member firm in the Dominican Republic: Alerta Fiscal sobre la Reforma Tributaria contenida en la ley 253-12 para efectos de Precios de Transferencia




Contact a tax professional with KPMG's Global Transfer Pricing Services.




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