The Directorate General of Internal Revenue (DGII) has published Resolution No. DDG- AR1-2021-00001, which provides the general multiplier for inflation adjustments for the fiscal year ending 31 December 2021, including new transfer pricing documentation thresholds and updates to its tax haven list.

Inflation adjustments

The Resolution includes the general multiplier for inflation adjustments for the fiscal year ending 31 December 2021, and the exchange rates for the treatment of exchange differences.

Transfer pricing documentation

According to the Resolution, the threshold for the transfer pricing documentation is increased from 12,193,981.70 to DOP 13,229,945.70 for the year 2022. Entities who are below this threshold are not required to file master file, local file, or 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. As compared to the prior list, 8 jurisdictions have been removed, including Kazakhstan, Lesotho, Malta, Micronesia, Papua New Guinea, Romania, Saint Lucia, and Sint Maarten.