Tax on Gross salary?

Hi all,
I just received a offer to move in DR in a hotel close to Río San Juan,
I'm single and wishing to live in small studio accommodation.
As stated on my contract They will pay me 3200 USD monthly gross salary.
Do you have any idea how much is the taxes or contribution in DR?
And if I can survive with the remaining?

Regards to All

That amount is about RD$147,200 per month.  According to the tabla de retenciones, you can expect to pay around RD$25,573 or $556US.  I used 46/1 as an exchange rate.  That leaves you with $2644US per month.  Here is a link for the tables:

http://www.dgii.gov.do/informacionTribu … iones.aspx

That isn't likely how it will actually be.  There are all kinds of ways they use to pay less tax!

Bottom line you can live very nicely on that! Rio San Juan is an inexpensive area.

[at]gringonazo and Planner,
Thanks very much for the fast answer, it's almost 3 weeks that I'm looking in this forum for any useful info...
Just one more question: between Río San Juan and Cabrera area in which one would you suggest to live? ( more secure or with more shop? Or what's so ever reason...)

I am sorry for that I cannot help you.  My guess is Cabrera but you will need a vehicle.

I too am confused about the taxes, despite having being reading tons of information.  I will use the calculator you provided gringolazo.  Thanks for that! 

Just to be clear, that is the amount that will be due during tax season, correct?  And then, in addition to that, there is the portion that is withheld from your check each month.  I used this to calculate that:

http://www.dgii.gov.do/informacionTribu … es2017.pdf

I'm totally not sure if I'm doing it right, though. :/

Afterward, I was excited to use this one: http://revistamidinero.com.do/herramien … impuestos/

Unfortunately, I realized I didn't know what numbers to enter for AFP, ISR and SFS lol.  Any ideas?

Ok in reality taxes are calculated based on a.ount of salary "declared" amount can be different then your actual.salary.

Planner, are you referring to taxes that need to be paid during "tax season", or to the ISR?  Right now, my focus is on the amount that will be withheld from my paychecks.  I'm not sure if I'm making sense lol - taxes are not my specialty  :D

based on what is reported for your monthly salary and how it is reported  you pay about  3% in  other withholdings. the company contributes about  7% of your salary.

First  35,000 RD have no income tax withheld up to a marginal rate I believe is  24%. I do not know ANYONE who pays  24%.

Thank you!!!

Siempre

Not sure if this should be tax question or residency question. I am in process of getting residency family reunification and it asks if I will be working in DR. I understand that you don't have to pay DR taxes for 3 years but once you have been resident that long they tax you on worldwide income. I want to prove financial solvency but didn't know if someone had experience with what they are looking for in bank account without disclosing any 401k etc etc. I am a little hesitant on putting employer info on there but at same time want to prove financial solvency . I work remotely for a company in the USA from my computer. I have read different things but from what I understand they might not tax my paycheck from USA just any capital gains, i.e. stocks, bonds, etc from anywhere?  Does anyone know if they're looking for 10k , 20K, 100 K D+ in bank account or what without disclosing employer info for privacy purposes ?

You need to ask a lawyer about this.  How you answer has far reaching consequences and the answers you get here could be wrong and easily create future issues.

I won't begin to try to tackle this.  If you don't have a lawyer we can recommend some good ones for you!

Well this is the taxation system explained by expat.com for resident expats:

https://www.expat.com/en/guide/central- … ublic.html

The taxation system in the Dominican Republic

As with every country in the world, there are a whole range of taxes in the Dominican Republic. This article will explain the different taxes and their rates.

Taxation in the Dominican Republic is governed by Law No. 11-92 of May 31, 1992, commonly known as the Tax Code. Taxes are collected by the Taxation Office known as the Dirección General de Impuestos Internos, or DGII.

Income Tax
All income which comes from work or business activities within the Dominican Republic is taxable, but not work from overseas. Everyone has to pay tax if they earn sufficiently within the country, no matter if the person is a Dominican, a resident foreigner, or a non-resident foreigner. You are said to be resident if you have been in the country for more than 182 consecutive days.

Income derived from work done outside of the Dominican Republic, by Dominicans or resident foreigners, is not taxable in the Dominican Republic. However, Dominicans and resident expats must pay taxes in the Dominican Republic on any income from overseas investments, once the expat has been a legal resident for three years. Note that any pensions or social security are not taxable.

However, you do not have to pay tax unless you earn RD$416,220 a year or a monthly salary of RD$34,685. In US dollars that is US$8,671 annually or US$722 a month. This means, given the wages in the Dominican Republic, that not many people pay income tax. Those who earn over that amount up to RD$624,329 (US$13,006) a year pay 15% on the amount over RD$416,220, and the next rate is up to 20% for those earning over RD$624,329 a year.

The levels are adjusted every year in January.

Corporation tax
Corporations and any other for-profit organizations pay a flat 27% income tax rate on net taxable income, and they must file a tax declaration before April 30.

Capital Gains tax
Capital gains are defined as the difference between the sale price of an asset and the acquisition or production price adjusted for inflation, and they are taxed as regular income.

Tax on the Transfer of Industrialized Goods and Services (ITBIS) or Sales tax
The ITBIS is a value-added or sales tax applicable to the transfer and importation of most goods and most services, and currently, the rate of ITBIS is 18%. However, there are many exemptions including exported goods, some basic foodstuffs, medication, fuel, fertilizers, books, educational materials, transport, home rentals, and utilities.

Property Tax
A 1% annual tax is payable on any property owned by individuals, based on the value of the property as appraised by the government authorities. However, the 1% is calculated only for values exceeding RD$6.5 million pesos which is US$135,000. For lots with no buildings on them, the 1% tax is calculated on the actual appraised value without the RD$6.5 million pesos exemption. You must pay this tax every year on or before March 11, or in two equal instalments: 50% on or before March 11, and the remaining 50%, on or before September 11.

The RD$6.5 million pesos threshold is adjusted annually for inflation and there are some exemptions to the tax as well as those properties below that value. These include farms and properties whose owners are 65 or above, and it is their sole property and they have owned it for more than 15 years.

Property Transfer Tax
A 3% tax is assessed on any transfer of ownership of real estate. The transfer tax is paid based on the market value of the property as determined by the appraisal done by the DGII, not on the price of purchase stated in the deed of sale. The deed of sale cannot be filed at the Title Registry Office without paying this tax and it must be paid within six months of the date of the deed of sale.

Tax on Transfers of Motor Vehicles
There is a 2% tax on any change of ownership of motor vehicles. The transfer tax must be paid within three months of the date of acquisition of the said vehicle.

Inheritance Tax
The estate of any person, Dominican or foreign, who lived in the Dominican Republic prior to death is subject to Dominican inheritance taxes irrespective of nationality.

Inheritance tax is 3% of the value of the estate, after deductions. Deductions can include medical and funeral expenses, as well as outstanding debts and mortgages.

Beneficiaries to the estate must file a declaration with the tax authorities within 90 days of the death, but if the case is complex an additional three and a half month extension can be granted.

Important:

If you are working for a Dominican company, it is standard for them to retain 10% of your salary to pay tax.

If you are self-employed you have to also pay tax on a monthly basis based on estimated earnings.

Some countries have a double taxation agreement with the Dominican Republic, such as Canada, but the United States and the United Kingdom do not. For those who are from the United States, the Dominican banks now report their assets to the United States taxation authorities.


Is it up to date?

This is pretty close.  A good concise review.  There are of course lots of additional details.

AND  to Zeke honey you still need to ask a lawyer for your residency application!

Hey Lennox and Planner thank you for your responses . Lennox the way I understand what you wrote is as long as my work is overseas and not with Dominicans then I do not have to pay Dominican taxes. So even though I will be living in DR my income is coming from outside the country. Or at the very least I do not have to worry about this issue for 3 years so plenty of time to consult with tax lawyer. Thanks again for info.

Not correct at all.  If your feet are on the ground here and you work from here then your income is taxable here.

Good to know. But you still don’t have to worry about it until you’re a resident for 3 years ?

Earning from income from work here is taxed immediately.  From outside the DR is not taxed first 3 years.

All the wind is getting taken out of my sail today ouch ouch ouch ! Lol but I like it when you give it to me straight.

Always best to know the rules.   

Application of the rules is another issue.  I know literally dozens of people who don't pay tax.

Canada and Spain have instituted taxation agreements with the D.R. which states that revenue generated here in the D.R. is taxed around %15 and we do not get double taxed on our Dominican incomes by the Canadian gov't , in my case.

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