With effect from 21 September 2017, the Dominican Tax Administration (DGII) has requested all companies and entities, such as trusts, mutual funds and similar entities, to identify their respective ultimate beneficial owners pursuant to Law 155-07 against Money Laundering and Terrorism Financing.  For this purpose, the DGII has updated the form RC-02 for the registration and updating of information on legal entities.

Form RC-02 now includes a new Annex D, which must be completed by all taxpayers at the moment of their incorporation or when they are modifying information on the National Taxpayer Registry.

New Form RC-03 needs to be completed when registering or updating data on trusts, investment funds and similar legal vehicles, especially it’s Annex C, which specifically requires the disclosure of data on ultimate beneficial owners.

Moreover, since1  October 2017, corporations are being required to complete a new IR-2 form for their Annual Tax Declarations, while non-profit organizations have to use a new ISFL form for their annual informative tax declaration. The IR-2 Form includes new annexes H-1 and H-2, while the ISFL form includes a new annex C, which require the identification of ultimate beneficial owners.

The implementation of these new forms and procedures by the DGII, is part of a strategy to strengthen the formal duty to register and update information on the National Taxpayer Registry, enhance fiscal transparency, the exchange of information for tax purposes and the prevention of money laundering and terrorism financing.