Times nearly up!!!! Tax confusion!!!

[laurajane]

We are a small business and due to the bad advice recieved and naivity on my part, we are behind with our Itibis payments, i need to try and calculate how much my itibis bill will be for year 2007/2008 which has to be paid this friday (i believe)!!! Someone wants to charge me rd$40,000 plus itibis to work it out, but if they are not going to save me more than that, can i do it myself?

For every month late with itbis, what penalties are incurred?

How are deductions calculated?

Am so confused, i cant believe we have left it so late. stupidity i guess!

any advice from an accountant or someone that runs their own business could really help me !!!

[Robert]

I suggest you get yourself an accountant ASAP.

RD$30-40,000 is normal for an accountant to charge to present the yearly accounts.

Fines. I "think" they are 10% the first month missed and a sliding scale each month after that.

If you need a competent account, give Eric Castro a call. Tel: (809) 472 4113.

If you need an outstanding accounting firm, give Raymi Mejia at Mejia Lora & Asociados a call. Tel: (809) 482 0838

Both speak very good English and come highly recommend by DR1.

[laurajane]

Thank you for your help. I will give them a call tomorrow.

[Raymi J Mejia]

B]Fines are up to RD$19,500 per trimester, 10% Late charge for the first month and 4% for each additonal month and also an interest of 1.73% per month.

Example:


If you have not paid the itbis for february, let's says you had to paid RD$10,000., the penalties and charges will be:

Penalties/fine of RD$19,500
Late Charges: 10% for march, 4% for april and 4% for may (till 5/20) = 18%
Interests: 1.73% per month = 5.19%

grand total:

10,000. Itbis
1,800. Charges for late presentation (18%)
573. Delay Interest (5.73%)
19,500. Fine

31,873. Total Tax and penalties

Deductions for the itbis is basicly the itbis charge to your company in the diferent services/acquisitions/expenses you receive/have.

For this to be valid all of the invoices/bills received must have the NCF (Factura Con valor/Credito Fiscal) and they have to be addresed to your company, including your RNC and the supplier's. RNC stands for Registro Nacional de Contribuyentes = Tax identification Number.




QUOTE=laurajane;630501]We are a small business and due to the bad advice recieved and naivity on my part, we are behind with our Itibis payments, i need to try and calculate how much my itibis bill will be for year 2007/2008 which has to be paid this friday (i believe)!!! Someone wants to charge me rd$40,000 plus itibis to work it out, but if they are not going to save me more than that, can i do it myself?

For every month late with itbis, what penalties are incurred?



How are deductions calculated?


Am so confused, i cant believe we have left it so late. stupidity i guess!

any advice from an accountant or someone that runs their own business could really help me !!![/quote]

[planner]

Well explained response! It is not often that tax issues are explained so clearly. Thanks.

[Robert]

Raymi is a partner in a local accounting firm. They know the tax laws inside out and use to dealing with foreign based firms that are doing business in the DR.

They look after our books and accounting needs here at DR1, so come highly recommended.

[planner]

Any chance they do business on the north coast? Or Santiago at least?

[Raymi J Mejia]

planner,

We serve the whole island, we have several clients in Santiago, Samana, Moca, La Vega as in other parts of the island.

Please feel free to contact us.

I'll be out of the office the next week, but if you need asistance you can contact Sayka or Firelli Mejia.

Raymi Mejia
Partner

MEJIA LORA & ASOCIADOS / BKR INTERNATIONAL
809-482-0838
raymi@mejialora.com
Dominican Republic, Accountants, audits, taxes
BKR International

[planner]

Thank you so much. I appreciate the contact information!

[laurajane]

[quote=Raymi J Mejia;634028]B]Fines are up to RD$19,500 per trimester, 10% Late charge for the first month and 4% for each additonal month and also an interest of 1.73% per month.

Example:


If you have not paid the itbis for february, let's says you had to paid RD$10,000., the penalties and charges will be:

Penalties/fine of RD$19,500
Late Charges: 10% for march, 4% for april and 4% for may (till 5/20) = 18%
Interests: 1.73% per month = 5.19%

grand total:

10,000. Itbis
1,800. Charges for late presentation (18%)
573. Delay Interest (5.73%)
19,500. Fine

31,873. Total Tax and penalties

Deductions for the itbis is basicly the itbis charge to your company in the diferent services/acquisitions/expenses you receive/have.

For this to be valid all of the invoices/bills received must have the NCF (Factura Con valor/Credito Fiscal) and they have to be addresed to your company, including your RNC and the supplier's. RNC stands for Registro Nacional de Contribuyentes = Tax identification Number.



Thank you for your clear information, we have now found a accountant that is helping us. Hopefullly all will be sorted soon, i wish i had checked my post sooner and contacted you, however i will keep your details should the need arise. Thank you