Tax Refunds Eased for Exporters

The General Direction of Internal Taxes (DGII) announced adjustments in its procedure for filing tax returns from the Transfer of Industrialized Products and Services (ITBIS), which will allow them to ease the refund process to exporters of exempt products as well as the implementation of refunds on other taxes established by the Law of Competition. Tax form IT-1 will include a section to be filled out by all exporters when they file their taxes for the period of January 2008, indicating the value of the export, in order to establish the ITBIS refund as established under the law. The DGII explained that the tax form is available on the Internet and can be accessed through their website at: www.dgii.gov.do

Up until now the current ITBIS tax reporting system has not had export data, which made it difficult to obtain information on the proportion of taxes that should be returned to exporters who were exempt from this tax burden. With the export value form, the GDII will have information about movement within the export sector and will be able to ease the process and any follow-up procedures by cross-checking data from the General Customs Office if forms filled out by the exporters are sworn statements.

As such, refunds can be established for the following taxes: Telecommunications Use, Security Expenditures, Fuel Consumption established under Law Number 495-06 and taxes on checks.

The DGII explained that in all countries where refunds are returned on Value Added Tax (VAT) items, the ITBIS in the Dominican Republic, this information is included in the exempt sales.