Taxes in DR

Hi jrclub,

Welcome on Expat-blog!

I hope you get replies very soon.

I wish you good luck
Christine

To my understanding there are no taxes on income earned outside of the DR.  This may be differnet if you become a citizen of the DR in the future.

BobK

Thank you Christine and Bob K for the info.
jrclub

There is no taxation on income from a pension outside of the DR regardless of residency status.  Unfortunately, if we have a pension from Canada we still have to file there regardless of residing in another country.  There are some financial products from abroad that are taxed after three years residing in the country.

Here is further info:  (the tax rates are from 2007, but I don't believe the laws have changed)
An Overview of Dominican Tax Law

Pension income is not taxable  to you here and yes you will continue to pay your tax on it in Canada.

After  3 years you  do need to report and pay tax on other  income received in DR.  Our law is territorial in nature.  You live here it is  earned here.....   so the tax laws will apply.

You  will also report that income for taxation in Canada - if you follow the  letter of the law.   

However there is a tax  treaty in place  so you should not face double  taxation.

Of course many  do not report  income   earned outside of this country. And many do not report income earned in this  country   back  in  Canada.......

Make sense?!

Thank you Planner and Usedcarinspector for the replies. I read somewhere that law 171/07 was passed on 13 July 2007 that allows pensioners and rentees not to pay any income taxes on their revenues from a foreign source. Is this true, or still true?

jrclub wrote:

Thank you Planner and Usedcarinspector for the replies. I read somewhere that law 171/07 was passed on 13 July 2007 that allows pensioners and rentees not to pay any income taxes on their revenues from a foreign source. Is this true, or still true?

Applies to pension or retirement type incomes only.

Thanks Planner.
Reading the law 171/07, clearly states that any income from any foreign source, such as interest, dividends, stocks, bonds,etc is not taxable in DR under that law. Am I missing something?
Thanks again

jrclub wrote:

Thanks Planner.
Reading the law 171/07, clearly states that any income from any foreign source, such as interest, dividends, stocks, bonds,etc is not taxable in DR under that law. Am I missing something?
Thanks again

I  asked my lawyer  and he says this: retirement or pension specific  income is not taxable.

Under the new  law encouraging  retirees- with your residencia you get  a 3 year  period where other income is not taxable.

Hi Planner!
Sorry, but after your 3rd DEEMED year living here you are liable
for taxes here on investment income in other countries.
"deemed" means living here for 6 months total each year, for 3.
That's a quote from KPMG in 2014.

Based on new rules or old rules? Based on retiree incentive or not?  I don't trust KPMG........or any of em......LOL But hell they might be right.  It depends on interpretation.

Hey Planner!
Well, it's just like anything legalistic here.
You need a lawyer to interpret.
2 lawyers, 2 interpretations!
One of the joys of living here!
We are enjoying a little rain right now!!!

Sooooo  true......

Actually you need three lawyers as one is needed to break the tie

Bob K

Hahahahahahaha   3 lawyers might create a brawl.....

You might be right Bob, but I'm thinkin' you
would get a third interpretation.

As for Planners suggestion, then it's off to court
& the same thing goes on. More judges with each
their own verdicts, different of course!
Ahhhh, I do love my new country!

What is not to love

Bob K

Get a lawyer who is real tight with an out of town judge.  That is what I did for my divorce.   Fast, easy & cheap.  She never saw it coming and it hit her like a run away Caribe Tours bus!    Don't feel bad for her, she was a truly bad person.

As expats we do not suggest that.....

Glad it worked for you... for me not the way to go

Bob K

it wasn't illegal or unethetical. (sp)   The judge was not paid off.  All that it did was to eliminate several layers of bureaucratic  B.S.   1 lawyer was sufficient for the process.   Make no assumptions,  everything was accomplished legally.   I don't mean to imply otherwise.  I shall not take umbrage with your veiled comments casting shadows of doubt upon my personal integrity and respect for realistic laws.     We are born naked & die naked.   In between, we are clothed with other peoples ideas of propriety.   I am not always comfortable with their choices.  This happens to be one of them.    Don't worry, lots-o-rain is a coming folks.   Enjoy your weekend y proximo semana!

Excellent reply Gypsy!
You & the rest of us know your case was the exception, unfortunately.
We need MORE rain chum!

Thanks Tomas.  It appears that you are the only one to understand it..    To those that didn't, what else are you missing in life?   A PM to you "T" on the morrow   with some more to the point thoughts.  Thanks again for your smarts.

We could not understand honey cause it sounded how it sounded............  it appeared you cut steps and used "a lawyer who was tight with  a judge"  almost always means a bribe here.   

So if it was on the up and up everyone should be able to do it........... 

Hey Gypsy, I just calls 'em like I see 'em.
For me, it was quite clear & the only way to proceed.
Ya done good.

Know enough people and sometimes the greedy out stretched palms  get eliminated.  It doesn't always work, but can often save aggravation, time & money.   By "real tight", I was referring to them being golfing buddies.   I had not given or even hinted at a "tip" for the man.   Never assume that the shoe fits.  Judge me not.... for the ye shall be judged!    We each pick which bus to ride.   Do not attempt to board mine unless you can pay the fare.   Nuff said!   Bring on the rain.1111

Well we have now beaten this to death.  We all agreed, lets move on.

Can we move on to rain, or back to taxes Planner?

This would  be the taxes thread......

just askin'

and just  sayin......LOL

How does the DR know if you have an offshore banking account earning interests on your investments
so that you could use for your cost of living.  If they do, than 25% most likely for expats is a big hit

Unfortunately, ALL Governments have hackers working for them too.
The only way to beat the Man is cash only.
Very dangerous though.
Give them enough to satisfy them & cross your fingers.

if deposited in off shore accounts, accessed by credit or debit cards, ( cash)  how do they know? Is it illegal/

On this site we stick to what is "legal"   we encourage staying within the law so we don 't get into any trouble.  So,  you are supposed to report your income.   That being said, it is really really hard to track income from outside the country. 

In fact lets just note that a minimum of  55% of this countries economic activity  is underground!  The government is looking for ways to capture and tax that income and those profits.

Of course Planner.
Legal is best.
Unfortunately, as you say, 55 percent of (our?) economy
isn't legal. So when you buy something and ITBIS is not
added, what do you do? Send it to the Government?
Our Government is what, directly or indirectly, 60-70
percent of the economy

Gypsy, paper trails are what catch most illegal transactions.

We have a conundrum here.
Oh, what to do?

For me, there is no problem. I don't make enough to have to pay income tax. I would much rather make enough to have to pay income tax.  If I won a large amount in the lottery, the US, unlike other countries, takes the tax out & you get the rest minus taxes. On game shows before you can take possession of your prize you must pay the taxes on its value.  Ie. $20,000 car you pay up front  about $4,000.  cei la vie. (sp)

55% underground ... Sounds like a government controlled/run operation

Bob K