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Itbis (18%).

Last activity 22 December 2019 by planner

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Kat11

Can someone confrim if the Itbis (18%) tax in DR is on HOA monthly fees? I was told by 2 realtors that it is and now I'm being told it isn't by a developer and I know he lives in nearby community with HOA fees that he must pay, so I am confused?
I would just like to know before I commit...because that 18% tax can really raise the HOA fee.  Thanks!

exservdr

Here is an answer found on the DGII website:

https://ayuda.dgii.gov.do/dgii/topics/b … -con-itbis

Translation of website:

In the case of the maintenance service we indicate that, the monthly fees paid by its tenants and owners for maintenance, are not subject to the application of the Tax on Transfer of Industrialized Goods and Services (ITBIS), because such payment is not considered  as a consideration of a service;  However, when said condominium hires the services of a natural or legal person for the provision of maintenance service, the payment of the ITBIS by the condominium will proceed, in accordance with the provisions of Article 335 of the Tax Code and Articles 2  and 3 of the Regulations for the Application of Title III of the aforementioned Code (Decree No. 293-11 dated May 12, 2011).

Kat11

So I guess that it will be taxed if I'm understanding it correctly.  Thanks

DominicanadaMike

No, you will not incur the tax on top of your maintenance fee.  Those are costs and are built into your maintenance fee.  Otherwise DGII would be receiving a double tax for essentially the same goods and services.

Kat11

Is the 18% tax on bills like cell phone, Electric, cable, internet??

DominicanadaMike

We are not charged ITBIS on electricity but for Cable  TV, Cell phone, internet its 18% ITBIS plus another 10% ISC Tax.  At the restaurant, 18% plus 10% Tips added to your bill.  Any large company expect to pay taxes.  These places generally accept credit cards.  Small colmados, bars etc. where cash is king there are not usually taxes added to the bill.  But again, it depends.

planner

In many cases the tax gets built in.  For large companies it's broken out on your bills. 

And of course we have a huge part of the economy that is "under the table" and thus not paying taxes.

Kat11

Thanks that helps a lot!!!

Kat11

What about groceries?

planner

Some are charged 18% some 16% and some tax free. It's included in the price you pay and in many stores broken out on your receipt.

Kat11

Thanks for all the replies! I guess it is still cheaper then living in our own countries (home taxes, medical & home and car insurance) and you all must like it cause you haven't moved back yet :-)   Everyone enjoy the Holiday and have safe and happy New Year!

planner

And the very same to you. Enjoy the holidays and stay safe!

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