tax question

[madera4]

I am planning to move to R.D.
Are you being taxed on your worldwide income or only on income earned in R.D. ?
Do you have to declare assets outside the R.D. ?
Any info welcome,Thanks

[Ken]

If you are employed in the DR you will be taxed on that. If you have other income from outside the DR, you will not be taxed on it. For example, I am retired and my retirement benefits are deposited in my account in the US. To get money, I write checks on the account and they are cashed in pesos with a local banco de cambio. I am not taxed on that income by the DR, but do need to declare it in the US.

You don't have to declare outside assets, but if you apply for residency you need to show that you have a source of income. That is not the same as declaring all your assets, however.

[Lambada]

I think one is supposed to declare pensions if asked. When I went to Rentas Internas to do the "Declaracion Jurada" for the I.V.S.S. (luxury tax) on our house, I was asked about my income. I explained it was a pension paid into my UK bank account & that I did not possess any papers on it! They wanted a statement of how much I accessed monthly, so I produced ATM receipts (dated 15th. & 30th. of that month) which in total did not exceed the baseline here for income tax. This was acceptable & I do not pay D.R. income tax on my pension (which is taxed at source in uk anyway). From the way the conversation was going, I surmised that if my ATM documentation had exceeded the income tax levels here, then that would have been factored into their equation. This question was only put to me once, a few years ago, & now they just assume I am not liable. I am not sure of the law on this, but like everything here, the practise is a grey area, which is malleable to manipulation.

[Fabio J. Guzman]

Foreigners residing legally in the Dominican Republic, must pay taxes on their worldwide income from financial investments after their third year of residency in the country (Articles 269 and 271 of the Tax Code). The same applies to Dominicans but without the 3-year grace period. The key text here is "de inversiones y ganancias financieras" ("of financial investments and earnings"). Would pension and social security benefits from abroad be included under that definition? I'm not sure what the answer would be. I do know however that Internal Revenue has not enforced this provision, not even against Dominicans with assets abroad.

[aos]

If you operate as a non-Dominican business are the revenues taxed? For instance if I operate out of the DR and service clients in the US and Canada is the revenue taxed by the Dominican tax authorities?

Also, isn't the Dominican Republic advertised as a Carribean Tax Free Zone>

[Wales]

Originally Posted by Lambada

I think one is supposed to declare pensions if asked. When I went to Rentas Internas to do the "Declaracion Jurada" for the I.V.S.S. (luxury tax) on our house, I was asked about my income. I explained it was a pension paid into my UK bank account & that I did not possess any papers on it! They wanted a statement of how much I accessed monthly, so I produced ATM receipts (dated 15th. & 30th. of that month) which in total did not exceed the baseline here for income tax. This was acceptable & I do not pay D.R. income tax on my pension (which is taxed at source in uk anyway). From the way the conversation was going, I surmised that if my ATM documentation had exceeded the income tax levels here, then that would have been factored into their equation. This question was only put to me once, a few years ago, & now they just assume I am not liable. I am not sure of the law on this, but like everything here, the practise is a grey area, which is malleable to manipulation.

Marjory :

I have a pension paid from the UK. I do not pay any tax on it, Why do you?
Brian

[Dominican Babe]

I have a pension paid from the UK. I do not pay any tax on it

If you have a UK pension, the only way in which you will not pay tax on it is if it is below the taxable income threshold (I think currently £4610 per annum). If your annual pension income is higher than that you will definitely be paying tax on it, your annuity provider will be deducting it from your income.

[AnnaC]

Originally Posted by Wales

Marjory :

I have a pension paid from the UK. I do not pay any tax on it, Why do you?
Brian

If you are still living in Canada that would be the reason you are not paying taxes to the U.K. If you file a Canadian income tax return you would have to declare it. The DR doesn't have any agreement with other countries regarding pensions that I know of.