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Retirement and Tax advice

Hello.  I'm currently in Santiago de los Caballeros on a tourist visa.  I go back home often enough so that I don't overstay my welcome ;)  I currently work as an independent contractor through a U.S.-based company as well as another overseas company, and my earnings are obviously deposited into my U.S. bank account and I claim all of this when I file taxes with the IRS.  (I'm 32 years old in case that helps).

Since I am newly self-employed and currently spend a lot of time here in the Dominican Republic, figuring out what kind of retirement account would be best has been difficult.  Many bankers I spoke to said that if I tried to access my retirement account while abroad my account would automatically be closed and the money would be sent to me.  I found this a bit strange, but that is what I was told. 

Does anybody have any suggestions, referrals, or recommendations regarding whom I could speak to about the best retirement options for me?  (There is a possibility that I will be looking into applying for residency here in the future, but it is currently undecided).

Thank you in advance for any help you may offer.  :)

Banks in which country & abroad from which country?

Those will be US banks. Sounds to me like you are getting some bad advice.  I am Canadian so don't know all your laws but I have never heard of this.

I am,sure others will help and I will suggest asking on the US forums!

Thank you!!!

Check out this website: http://iralawyer.com/about/

We connected with John Hyre when we decided to purchase an investment property in DR through a self-directed IRA.  When it comes to IRAs, he is the best authority we could find! Attorney and accountant all in one. There might be articles on his website that answer your questions.

I'm not an expert but it sounds like you are getting some bad information from whoever is telling you that accounts will be closed. In addition to working with John, we have also been working with a retirement/financial planner as we finalize our plans for early retirement and a move to DR.  Not once has anyone said anything about limitations accessing retirement accounts from abroad.

Great help, thank you!

PM me for another excellent tax & planning Cpa. Very well connected here. Hope you find what you need.

CPA here or in the USA????

Here. I know that you will say that is a no-no.  Deals with expats in business here as well as Dominican corporations. As US CPAs  have less experience here so do locals have less about the USA.  It does not hurt to have a local if financial transactions & investments also transpire here in the DR.

IF it is an American CPA here absolutely  refer for  info about US taxes!!! Agreed.

A Dominican Accountant is NOT who I would want giving me advice about tax overseas. And they are NOT CPA's here at all.

The tax rules here are a completely  different world than most other places.  Its nuts here trying to understand their systems.

I repeat, have investment here or doing business here, better to have both. There is a fairly high limit to what you can earn here before you have to pay US taxes. The $$ I think has to be utilized here  but not transferred to the US. A tricky subject that needs expert advice. The US is getting pretty picky about how its' citizens can spend their legal earnings.

Tinker the OP specifically asked about issues in the US.

US income tax is complicated and is based on income earned worldwide by individuals regardless of how it is spent.  Corporate taxes are very different.  As a former financial planner my advice is: get good quality advice from an American lawyer / accountant / investment professional.

If you want tax advice here get a local professional!

I surrender to a higher power.

We have to be really careful about  confusing issues here.  Its easy to make things more complicated than they already are. I see this every single day.  Things here are at times ridiculously complicated!  It is easy to get tied up in it,  lets try to keep it simple!

Yeah, I thought it was very strange when they said that my account would be immediately closed.  I guess she didn't like me for some reason and decided to give me that information. :/

Anyway, thank you so much for your referral.  I'm going to check into that now!

Glad we could help.

I am trying to figure out what taxes I will be required to pay in the Dominican Republic - not here in the US - based on how many days I spend there this year.  Does anyone have any recommendations of a professional I could contact to help me understand the taxation system there?  I'm having a very hard time finding someone that understands the tax system there from here in the US.

Thanks in advance!

Hi & welcome to the forum & the island. I only know of one. However, she is in the Cabrera area. PM me for info. If too distant. she may be able to refer you to someone nearby.  She does have clients across the country.  She specializes in tax law. Good luck in your quest & again, welcome.

Why would you be paying tax here? Do you work here?  Is this pension type income?

I support Planner's advice and whenever someone tells you something that doesn't sound just right, ask them for it in writing or in an agreement that you signed when you invested your money.  That should get you a more legitimate answer in the US.

i Don't know why either. Not enough info as to why. I don't read minds, I just answered the question. I hope we get some more from them. Yes, sounds pretty flackey to me also. Fore warned is fore armed.  Waiting to see how it plays out.

I'm just trying to understand the tax law there.  I am not employed by a Dominican Company, but the tax laws are not clear to me.  :/  I'm not sure whether or not I will have to pay taxes there.  It sounds like I will be considered a resident for tax purposes if I spend more than 182 days in the country, and that I would be subject to tax laws after having spent three years in the county (based on what I read on several websites, including this one (expat.com), http://www.dgii.gov.do/, and several tax consultants' websites).  I am not sure whether or not I am understanding this correctly though.  :S

On expatfocus.com, I read "Income tax is governed by the Direccion General de Impuestos Internos, or the DGII, and is established by Law 11-92. All work carried out within the Dominican Republic is taxable, but any work sourced from outside the country is not. However, once you have held residency for over 3 years then income from overseas, both financial and investment, is liable to taxation."  I'm not sure I've understood the information correctly. I currently work as an independent contractor online - I'm in Texas right now - for a company based in California.  I'm trying to decide whether or not it would be a good idea for me to move to the Dominican Republic and work for the same company there. 

I'm also confused about the verbiage on the DGII's website.  (Mainly: "persona natural o jurídica residente" and what the exact meaning of "ganancias financieras" is.  I just want to make sure I'm understanding everything correctly.

Anyway, thank you to all of you who have responded! 









Below are some references in case anybody is curious.

"¿Quiénes pagan este impuesto?

Toda persona natural o jurídica residente en la República Dominicana y las sucesiones indivisas de causantes con domicilio en el país, pagará el impuesto sobre sus rentas de fuente dominicana, y de fuentes fuera de la República Dominicana provenientes de inversiones y ganancias financieras."

Protaxconsulting.com

"Dominican Republic Residency
An individual is considered a resident of the Dominican Republic once they have stayed in the Dominican Republic for more than 182 days in any given fiscal year.  Note that these days do not need to be consecutive.  Gaining Dominican residence requires that individuals pay taxes on their worldwide income after three years of residency in the Dominican Republic.

Is Foreign Income Taxed Within the Dominican Republic?
Individuals will be required to pay taxes on their worldwide income if they are a resident of the Dominican Republic and have been a resident for at least three years."

What websites say, including gov't,.and what is actually done are two different things.

Income earned here from work outside the country is in fact taxable if it is reported. Also know there is a tax treaty between DR and USA. 

You need a professional for this advice. Your particular situation should be considered as well as all your options. That is my best advice.

Thank you Planner!  Yeah, I'm trying to find a professional.  It's just been a struggle to say the least.  :S

Hi. I am the guy who at your first post, suggested contacting a professional tax accountant, a local.   I said PM me for contact info.  I will repeat the suggestion as others have now accepted the premise.  As Planner said it is a cluster F&#*@.  The one I suggest is a Dominicana, not a stateside tax guy.

Tinker the poster may not be able to PM you yet. Reach out directly with your referrAl.

I will ask a good friend who is a lawyer for a suggestion.

Exceptions are pensions and Social Secuity.

Sent info last night. What is happening about the "Meet Up" in Sosua in a few days?.....  AND a big thank you to the Vets who are spaying & nuetering  (sp) this weekend for free at the Colibri Hotel on Pedro Clisante,  Sosua.  Cats & dogs. They are a group of Canadian volunteers. FRI-SAt-Sun,  8:30 a.m. until ?  When we have a complaint, we broadcast it loud & clear, not so when there is cause for praise. Shame on us.

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