• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/18/2013

Dominican Republic - VAT, duty withholding on free zone transactions 

September 18:  The Dominican tax authority (DGII) issued guidance providing rules when value added tax (VAT) and excise duty applies for commercial activities and transactions between free zone entities (or entities that may be subject to other special tax or customs regimes) and an individual or legal entity domiciled or located in the Dominican Republic.

The effective date for the guidance is 1 September 2013. The measures require 100% withholding of VAT and excise duty by free zone entities or by entities operating under special tax regimes (including entities in commercial free zones and export free zones) with respect to certain transactions.

Read a September 2013 report [PDF 50 KB] prepared by the KPMG member firm in the Dominican Republic: Tax Alert: General Ruling 04-2013

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