The agents of retention They are all those subjects who, due to their public function or in reason of its activity, craft o profession, intervene in acts or operations in which they can carry out the retention of the tribute corresponding. In other words, agents of retention They are individuals or legal entities that must retain the taxes authorized by the Dress labor to third parties by virtue of the operations they carry out, which must be declared, presented and paid to the administration taxed by the agent that holds them back.
The Deloitte web portal defines the agent de retention as a "debtor of the taxpayer or someone who, due to his public function, activity, craft o profession is in direct contact with a monetary amount of your property of the taxpayer or that this should to receive, which gives you the possibility of deducting the part which corresponds to revenue authorities in concept of tribute." Without embargo, art. 8, paragraph 1, of the law 11-92, defines it as all those subjects, who due to their public function or in reason of its activity, craft o profession, intervene in acts or operations in which they can carry out the retention of the tribute corresponding. Consequently the Agent de Retention stop pay his creditor, the taxpayer, the amount corresponding to the tax to enter it into the hands of the Administration Tax.
The appointment of Agent de Retention o perception, the agent it is the only obliged al paid of the sum withheld or received and is responsible to the taxpayer for withholdings or collections made improperly or in excess. This designation is made in crafts automatic once the taxpayer register in the Register National of the Taxpayer because it is part their obligations tax.
Agents of retention
Agents retention, according to the Act No. 11-92, son.
- The public entities, when paying or crediting in account to Natural Persons, Undivided Estates and Legal Entities, as well as to other entities not exempt from the impuesto.
- The Legal Entities and unique businesses owner when paying or crediting in account to Natural Persons and Undivided Estates, as well as to other entities not exempt from the impuesto.
- The Civil associations, Cooperative Societies and other entities right public o private with personality lucrative o no.
Natural persons, as long as they are not sole proprietorship businesses. owner, are not established by the bar code tax as agents of retention of the ISR, so not
must apply retention when making payments in the sale de goods o benefit de the service.
Obligations of the Agents of Retention
Agents retention do obligations in accordance with the regulations cited above, namely:
1. Pay to Administration The amount withheld from withholdings made within the time periods established by tax laws is taxable.
2. Respond to the taxpayer for improper or excessive withholdings.
3. Deliver to the taxpayers, for which account pay the impuestoa whirlpool bath, experiment written of the retention done.
4. They are responsible for the legal obligation tax for amounts that have not been withheld in accordance with tax laws, regulations, rules and practices.
How I know experiment la retention?
Agents retention must be delivered to the taxpayers for which account pay the impuestoa whirlpool bath, experiment of the retention carried out, in the crafts established in the tax laws, regulations or rules of the administration tax.
Retention of the main taxes in the Republic Dominican Republic and taxpayers
Taxpayers subject to the Retention of the Tax About Rent
Below we list the taxpayers who are subject to the retention of the impuesto on income by part of agents of retention.
• Natural persons and undivided estates for payment of salaries, commissions, prizes, rents, leases, fee, dividends paid or credited and any other type de income.
• Natural persons, legal entities or entities not resident or not domiciled in the country, when they receive payments for any reason income from Dominican source.
• Individuals and companies that receive payments from the State.
• Individuals who receive interest payments.
Income subject to Retention of the Tax About Rent (ISR) and its porcentaje correspondent
- 10% Rents and leases paid to individuals.
- 10% Contract work for services and commissions paid to Individuals.
- 25% on prizes or winnings obtained in lotteries, raffles, lottos, electronic games and prizes offered through promotional or advertising campaigns, with the character of paid definitive (Act No. 253-12). The profits obtained through prizes in sports betting banks and lottery banks will be subject to the following scale:
I. Prizes of more than RD$100,001.00 up to RD$500,000.00 will pay 10%.
II. Prizes of RD$500,001.00 to RD$1,000,000.00 will pay 15%.
III. Prizes of more than RD$1,000,001.00 will pay 25%. - 2% Transfer of title and properties.
- 10% Dividends paid or credited in the country, for resident or non-resident taxpayers (Act No. 253-12).
- 10% Interests to Natural Persons, Legal Entities or Non-Resident Entities (Act No. 253-12).
- 5% Interests to Natural Persons, Legal Entities or Non-Resident Entities (Act No. 57-2007).
- 27% Remittances Abroad (Act No. 253-12).
- 5% Payments to Suppliers of State awarded by the acquisition de goods and services not performed in relationship de dependence. When the State make payments to Individuals for services, the withholdings you make must be made based on the percentages indicated above (rent, fee, commissions and other income). Settlement of ISR Withholdings
- 5% Telephone Games (Norma No. 08-2011)
1% Gain de Capital (Norma No.07-2011) - 10% Games Via Internet (Act No. 139-11, Art. 7)
- 10% Other Income (Act No. 11-92, Art. 309, Lit. f)
- 2% Other Income (Decree No. 139-98, Art. 70 Lit. a and b)
- 2% Other Withholdings (Norma No. 07-2007).
1% Interest paid by financial institutions to resident Legal Entities (Norma No. 13-2011). - 1% Interest paid by financial institutions to Resident Individuals (Act No. 253-12)
What is the ITBIS Retained?
El ITBIS Retained or ITBIS to third parties is the porcentaje of the impuesto that taxpayer retains for payments made for services or goods received from Individuals, Legal Entities or Sole Proprietorship Businesses Owner and persons not registered in Tax Internal. This ITBIS collected must be paid to Internal Revenue in accordance with the provisions legally.
What are the rates of retention that apply to the ITBIS?
• 30% of the ITBIS billed to Legal Entities. When Legal Entities or companies of any nature pay for liberal professional services or services of rental de goods furniture to other companies with character lucrative or not (Norma General No. 02-05 on Agents of Retention of the ITBIS).
•100% of the ITBIS billed to Legal Entities. When Legal Entities or companies of any nature pay for security services or mass surveillance to other companies with character lucrative or not (Norma General No. 07-09 amending the Norma General No. 02-05 on Agents of Retention of the ITBIS).
•100% of the ITBIS billed to Natural Persons. When Legal Persons or companies of any nature and Sole Proprietorship Businesses Owner pay taxed services to Natural Persons (Art. 25 of Regulation No. 293-11 of the Title III of the Dress ITBIS tax payer).
•100% of the ITBIS billed to persons not registered as taxpayers. When individuals and legal entities acquire goods or services of persons not registered as taxpayers and issue a Voucher Shopping to sustain saying spent (Norma General No. 05-19 on types of Special Fiscal Receipts).
•100% of the ITBIS billed to Non-Profit Institutions Profit (ISFL). When legal entities or companies of any nature pay for advertising services or other services taxed by the ITBIS to non-profit entities.Norma General No. 01-2011 on Retention of the ITBIS on Advertising Services and other services taxed by the ITBIS provided by Non-Profit Entities).
•30% of the ITBIS invoiced in the paid with cards credit y debit. When acquiring companies (credit card administrators) credit y debit) make the transparent value of ITBIS on transactions through credit cards credit o debit carried out in affiliated establishments or 2% on the value total of such transactions (Norma General No. 08-04 on retention (ITBIS).
In Santo Domingo, Republic Dominican Republic we have the most complete and effective team of lawyers to advise you on issues right tributary. Here in Carlos Felipe Law Firm SRL. We provide you with an accurate and timely legal advisory session. At Carlos Felipe Law Firm SRL we evaluate your ///, analyzing and establishing the real possibilities of success, as seen here with the Constitution and the laws of the country. We communicate with clear, simple, and timely language, the best actions and strategies to follow to solve the situation or conflict that concerns you.
