The Country-by-Country Report (CbCR) must be filed in the Dominican Republic by 31 May 2024.
The General Norm 08-2021 was released by The Dominican Republic’s Tax Administration (DGII) on the CbCR in October 2021.
The provisions established in General Norm 08-2021 apply to Ultimate Parent Entity (UPE), or Constituent Entity of a Multinational Group (MNE Group) tax residents in the Dominican Republic, and have consolidated annual revenue equal to or higher than DOP38.8b.
The CbCR must be filed by UPE of an MNE no later than 12 months after the last day of the Reporting Fiscal Year of the MNE Group.
In addition, according to paragraph I of Article 4 of the General Norm 08-2021, a Constituent Entity that resides for tax purposes in the Dominican Republic, and that is not the UPE, is required to submit the CbCR no later than 12 months after the last day of the Reporting Fiscal Year of the MNE Group, if any one of the following conditions are met:
- The Ultimate Parent Entity of the Multinational Group is not obligated to file the CbCR in its tax residence jurisdiction.
- The jurisdiction in which the UPE is resident for tax purposes has a current International Agreement to which the Dominican Republic is a party, but does not have a Qualifying Competent Authority Agreement (QCAA) in effect.
- The DGII has notified the Constituent Entity that is resident for tax purposes in the Dominican Republic when there has been a Systemic Failure of the UPE’s jurisdiction of tax residence.
According to paragraph II of Article 4 of General Norm 08-2021, however, it is not required to file the CbCR by the Constituent Entity if it was filed through a Surrogate Parent Entity of the MNE Group.
The entity must then notify the DGII that the CbCR was filed in the Surrogate Parent Entity’s jurisdiction of tax residence, and the Surrogate Parent Entity’s jurisdiction of tax residence:
- Requires filing of the CbCR aligned with Article 18 of Decree 78-14 (modified by Decree 256-21) and Article 6 of General Norm 08-21.
- Has a Qualifying Competent Authority Agreement (QCAA) in effect, where the Dominican Republic is a party.
- Has not announced a Systemic Failure to the DGII.
- Has been notified that it is the Surrogate Parent Entity by the Constituent Entity.
Failure to comply with the CbCR obligations will result in penalties, in accordance with Article 281 Ter. of the Dominican Tax Code and its modifications. Additionally, the fines can triple for noncompliance with a formal obligation.
