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  #1  
Old 06-17-2001, 01:01 PM
Onofre
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Default Taxes on Pensions

I will be moving to DR withing the next 3-4 months. I will have a pension of over $7,000 (US) a month. My question is, will I have to pay any taxes?
I plan to allocate $500 (US) a month to help children of poor families go to private school. Will I be able to claim this if I have to pay taxes.
I will be building a 450 square meter home. Do I have to pay property tax?
I am a Dominican citizen.

Onofre
  #2  
Old 06-18-2001, 02:49 AM
"The Tourist Watcher"
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Default Re: Taxes on Pensions

From what I know, there is no mechanism I know of that the government can use to tax pension plans from the U.S.

Of course, anything you declare here now may cost you, because the government has changed into a very agressive collector and creator of new taxes, and they will figure out a way to get you.
Dominican polititians are eager to get their hands on your hard earned money any way they can to stuff their pockets.

Dont show off too much here or someone will snap your dough.
Houses pay taxes. The bigger the more you pay. There is a luxury tax on residences of 1% of assesses value a year. For instance, a house that is assessed at $2,000,000 pesos will pay to the Internal Revenue Department $20,000 pesos a year. When you build your place you will have to title it. That will cost about $10,000. Taxes will be heavy if you buy or purchase cash, but if you take a loan from a savings and loan association, the taxes will be much lower(about 2% I think)

There are changes being made to the laws now. Recently the luxury limit was raised from 1.3 mil. to 1.5 mil.It could very well be that they may have to increase it more because almost any house here exceeds $1.5 million.
  #3  
Old 06-18-2001, 08:36 AM
Fabio J. Guzmán
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Default Re: Taxes on Pensions

Property taxes on sumptuous homes and unbuilt city lots ("IVSS" tax) must be paid every year on March 11 and October 11. The law considers "sumptuous" any home or condo worth more than RD$1,400,000 pesos (approx. US$85,000). This figure is adjusted for inflation annually. The tax rate is 0.25% p.a. of appraised value for homes and condos and 0.50% p.a. for unbuilt lots. Penalties for late payment are steep: 10% of the tax due for the first month and 4% for each subsequent month.

Residents of the Dominican Republic (both Dominicans and foreigners) are only taxed on their worldwide income coming from financial sources (i.e. bank deposits and investments abroad). For foreign residents, taxes are due only after their third year of residency in the country.
 

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