Global

Details

  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/11/2013

Dominican Republic - Tax havens listed, invoking transfer pricing rules 

July 11: The tax authorities of the Dominican Republic have published a notice listing  countries that are considered to be “tax haven” jurisdictions or jurisdictions with “nil” taxation, and thereby invoking application of the transfer pricing rules regardless of whether the transaction involves a related party or not.

The notice (identifying information RNC: 401-50625-4) lists the following jurisdictions as “tax havens” or jurisdictions of nil taxation for purposes of the transfer pricing rules.


Andorra
Anguila
Antigua y Barbuda
Antillas
Aruba
Austria
Bahamas
Barbados
Bahrein
Belguim
Belize
Bermuda
Brunei
Chile
Cyprus
Costa Rica
Dominica
Gibraltar
Granada
Guatemala
Guernsey
Ireland
Cook Island
Man Island
Labuan Island of Malaysia
Cayman Islands
Marshall Islands
British Virgin Islands
Jersey
Liberia
Liechtenstein
Luxembourg
Malta
Mauricio
Mónaco
Montserrat
Nauru
Niue
Netherlands
Panamá
Phillipines
Samoa
Saint Kitts and Nevis
San Marino
Saint Vincent and Grenadines
Saint Lucia
Singapore
Suitzerland
Turks and Caicos
Uruguay
Vanuatu

Background

Provisions under the transfer pricing rules of the Dominican Republic apply with respect to inter-company commercial or financing arrangements involving:


  • Related parties located abroad
  • Individuals, companies incorporated or located under “special tax regimes” that are considered to be tax haven jurisdictions—whether or not the subject transactions involve related parties
  • Related parties benefiting from the free trade zone regime

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




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