In the commercial activity generated by chinese business In the Dominican Republic predominates cash. Beyond a simple payment preference, this modality lends itself to the tax evasionin a context in which increasingly larger stores predominate without proper construction permits, local sellers warn.
A survey carried out by members of the Dominican Coalition for Fair Competition (Codocom) – who visited establishments in different provinces to verify their collection methods – concluded that nine out of ten chinese shops they demand cash to clients and issue invoices without the tax on the transfer of industrialized goods and services (ITBIS), without tax receipts and without guarantees for the products purchased.
14
This is the number of unions that the Dominican Coalition for Fair Competition brings together.
The coalition – recently formed and which brings together 14 unions of micro, small and medium-sized businesses, merchants and local importers – assures that if the authorities attacked the probable evasion of the ITBIS In these businesses, up to a third of the budgeted deficit could be covered for 2026 -calculated at a total of 280,575.3 million pesos-.
If we add to this the hiring of employees outside of formality and undervaluation of goodsthe costs operational of a Chinese business compete directly with the subsistence of formal Dominican businesses, he stressed Ivan Garciapresident of the Dominican Federation of Merchants (FDC) and spokesperson for the Codocom.
“How do we compete with an agent who does not pay any taxes and who does not carry out his constructions according to the law?” he asked, after highlighting that the companies face high labor costs and operational.
He indicated that the commercial sector supports all types of foreign investment direct that contributes to the development of the country, but insisted that it “must comply with all the rules.”
Constructions
The union warned that there is “a pattern” in the construction of large stores that is becoming increasingly common in small municipalities.
“There are 10,000 square meter stores in Neiba. But there are in Elías Piña, Dajabón, in Pedernales. In San Francisco de Macoris They opened one of 40,000 square meters,” said García.
He stated that it takes merchants “between nine months and a year” to build a store due to the permits they must obtain from entities such as the city council and the Ministries of Environment and Housing and Buildings (Mived), but that Chinese merchants are achieving it “in less than six months“because “they do not observe compliance with any of the construction laws“.
Joint
Jennifer Troncosoexecutive director of the National Organization of Commercial Companies (ONEC) and spokesperson for Codocomconsiders that the State’s supervisory institutions must take joint measures to guarantee that all these businesses are complying with the laws.
Beyond the operational that have been carried out by the general directorates of Customs and Internal Taxesconsider that it is necessary to articulate measures that include the Superintendence of Banksthe ministries of Housing and Buildings and Labor, as well as Pro ConsumerPro Competencia and the National Industrial Property Office (Onapi).
The Dominican Coalition for Fair Competition (Codocom) was formed in November of this year due to the concern of the commercial sector about the increase in illicit trade and unfair practices that affect competitiveness. It seeks to support Government initiatives to promote effective solutions, promote the updating of the regulatory framework and contribute to the construction of fairer and more sustainable trade, promoting formality and transparency.
