On 4 February 2021, the Directorate General of Internal Revenue (DGII) published Resolution No. DDG- AR1-2021-00002, which provides various tax issues, including new transfer pricing thresholds and updates to its tax haven list.
Transfer pricing reporting
According to the Resolution, the transfer pricing documentation threshold for 2021 is increased from DOP 11,552,402 to DOP 12,193,982. Entities who are below this threshold are not required to prepare a transfer pricing study and disclose the arm’s length range on the disclosure form. However, this threshold does not apply if a controlled transaction is carried out with a low tax jurisdiction.
Tax haven list
The resolution provides an updated list of countries, that the DGII does not consider as having a preferential tax regime, with low/no taxation, or a tax haven. However, the tax authority may partially consider a state and territory if it maintains a specific preferential or low or no tax regime, in which case, a specific notice will be issued.
Personal income tax
Under the resolution, individual income tax brackets and rates for 2021 are given a follows:
| Annual income | Tax rate |
| Income up to DOP 416,220.00 | Exempt |
| Income from DOP 416,220.01 to DOP 624,329.00 | 15% of the surplus of DOP 416,220.01 |
| Income from DOP 624,329.01 to DOP 867,123.00 | DOP 31,216.00 plus 20% of the surplus of DOP 624,329.01 |
| Income from DOP 867,123.01 onwards | DOP 79,776.00 plus 25% of the surplus of DOP 867,123.01 |
Other issues
The resolution informs that the inflation adjustment multiplier for the fiscal year ended on December 31, 2020, will be 1.0555. Also, the resolution establishes single payment of tax of lotteries and sports betting.
