Rule 04-2022 on Incorporation, Permanence, Exclusion and Sworn Declaration in the Simplified Tax Regime (RST) will be applicable for the fiscal year between January 1 and December 31, 2022.
This, so that the taxpayers under its control can adjust their payment expectations in advance. In other words, the payment adjusted to the mandate of the standard would be made in February 2023.
The administration’s decision aims to bring peace of mind to the Dominican people and to the liberal professional sectors and legal entities covered by the RST. In addition, the DGII will exhaust an education and communication process around the aforementioned rule, which corrects the distortion that allowed taxpayers in the RST to receive a double exemption, affecting the principle of equity that should prevail in the tax administration. In the Simplified Tax Regime there are 20,500 taxpayers registered, divided into 16,500 liberal professionals and 4,000 legal entities.
According to the estimates made by the Tax Administration based on data analysis and research carried out by our technicians, it has been determined that the total number of liberal professionals who took advantage of the double exemption is 6,200 people. Of this number, 4,400 are doctors.
In the case of the doctors impacted by the correction of the distortion, the calculations indicate that they have an average income of RD$3.3 million, both for being salaried and for independent professional services.
However, the willingness to listen to the country’s economic sectors and clarify any concerns or interpretation of the law or administrative measure that is in process or has been taken remains. By virtue of this, the management team of the institution headed by the general director, Luis Valdez Veras, held a meeting last Tuesday, February 08, 2022 with the board of directors of the Dominican Medical College (CMD) and its president Senén Caba.
At said meeting, a next meeting was agreed for Monday, February 14, to address aspects related to the mandate of Regulation 04-2022.
The project of this General Standard exhausted a public consultation process, from Tuesday 04 to Tuesday 18 January 2022, which received three comments from taxpayers and one union, which were mostly incorporated. After this, its publication was carried out on January 27, 2022.
The announcement of the postponement was offered by the Director General of Internal Taxes during the delivery of a floral offering in the Alta de la Patria as part of the commemorative acts on the 178th anniversary of National Independence. He was accompanied by Francisco Torres, Deputy Director of Compliance Management; Ricela Spraus, Deputy Director of Facilitation and Services; Yorlin Vásquez, Legal Deputy Director, and Freddy Torres, Auditing Deputy Director, among others.
The reaction that the Medical College had had
Last week the CMD had complained about the General Standard cited above. The president of the organization, Dr. Senén Caba, said at that time that this rule included “a positive adjustment of income tax not withheld from employees”, which is not contained in the Dominican tax system and which also violates decree 265 -19.