New D.R. Business

vpmiami · #1 01-21-2003, 04:28 PM

Mr. Guzman,

I have a question...

My husband just got his DR residency this week. He got it quick, because his parents were born in DR.

What will he require to set up an S corporation in DR? Which office should he start off at in DR? How much will it cost... It cost $385.00 here in the U.S.

Now that he is moving to DR to live, will he be required to report income in the US? or does he just follow the laws and tax filing like everyone else that lives and owns a business in DR?

Any information you may have on this, will be greatly appreciated.

Please note, that we do not consider ourselves as a foreign investors? Being he now has residency and is moving there... will this be the correct assumption?

Thank you...

Fabio J. Guzman · #2 01-21-2003, 07:24 PM

Residency in a few days! It should not have happened. I hope it was done correctly.

As an American citizen, your husband is subject to American tax laws even as a resident of the DR. You should consult with an American attorney or CPA about the consequences of establishing residency in the DR and doing business here. (I confess that I have some basic notions about this issue but I'm hesitant to give opinions on subjects not within my expertise. I am not an American attorney.)

As a Dominican resident your husband will have to pay taxes on all Dominican income immediately. Beginning the third year after obtaining residency, he should also pay taxes on income from abroad derived from financial sources (Art. 271 of the Dominican Tax Code).