He Agreement between the Dominican Republic and Spain to avoid double taxation and prevent tax evasion is of fundamental relevance for the legal security of both countries, indicated CEF Santo Domingo, the General Directorate of Internal Taxes (DGII) and the National Council of Tax Consultants.
These three institutions organized the virtual panel “RD and Spain Agreement (CDI)”, where Alvaro Cancha GonzálezTax Inspector of the Spanish State and member of the Superior Body of Tax Inspectors, explained that the main problem that the CDI solves is international double taxation, which occurs when the country where the income is generated taxes an income and, at the same time, the country of residence of the taxpayer intends to tax that same income. “It establishes clear rules on which State can tax first, sets maximum taxation limits at source for certain incomes and provides mechanisms for the other State to eliminate double taxation,” he explained.
