Soon to be new DR resident

MikeKO · #1 04-12-2002, 09:23 PM

Hi,

I will be moving to the DR sometime late this year or early 03. I've managed to track down most of the information I am interested in, but a few items remain. If someone could help me fill in some of these holes I would appreciate it.

1. I will be maintaining a moderate amount of money in a local DR bank. Does anyone have recomendations on which ones are good (or bad)?

2. I haven't found a good location for information on DR taxes. Could someone point me to a reasonable source?

3. Does anyone know how the US IRS treats investment income from investments in the DR?

4. What is the situation for internet access in the DR?

5. I know that the DR has some pretty high import duties on various items. Does this include books? Can books be ordered from Amazon etc?

6. What sort of Sat TV service is available. I know about DirecTV Latin America, but are there others?

Thanks
Mike

Ken · #2 04-13-2002, 10:11 AM

I'll take a crack at several of your questions:

1. You won't go wrong using Banco Popular. It is a long-established solid bank with branches in a great many locations. There are a few other banks that could be recommended, but my preference would be Banco Popular.

2. No problem with internet access in the areas where you are likely to locate. I use Codetel, but there may be other providers as well. Codetel has dial up and ADSL, which I am using.

3. If you are talking about books for your personal use, there should be no problem ordering from Amazon or similar providers. I have gotten several books this way. Little if any duty charged. If you are talking about importing in large quantity for resale, that is another matter.

4. Regarding taxes, you should indicate what sort you are thinking about. It is especially important to indicate whether you are asking about taxes a business must pay or taxes that might be collected from an individual.

Hillbilly · #3 04-13-2002, 12:10 PM

You can get Satellite services, both legal and illegal....

books? No problem, except if you use one of the commercial forwarders: Business Mail or EPS you get taken for an arm and a leg on the weight. Better try and sign up with one of the missionary organizacions that fly in stuff on a regular basis.

As for US IRS on taxes..How can they tax what they don't know about?

Same thing for DR taxes. You are sooo poor, you can only just make your house payments....

Unless you are going to flaunt your wealth, you will probably pass right thru the cracks.....

Remember that punch line >?? "Don't make waves" ???

HB

hansbert · #4 04-13-2002, 06:22 PM

I agree that Banco Popular is by far the most serious commercial bank and holds even a good position in a Forbes ranking comprising banks all over Latin America. Baninter, Banco del Progreso and BHD are also serious and recommendable.
As far as DR taxes are concerned you pay income taxes provided that you are domiciled in this country like any other Dominican or foreigner. As a natural person (individual) for income generated in the country net income lower than appr. 120000 RD Peso per year is taxfree.These figures are adjusted periodically. For income exceeding this amount you pay 15% to 25%. For income generated outside the DR if it comes from investments the first two years you do not pay taxes, beginning with the third year of residence -according to the valid laws- theoretically you do pay taxes but they do not apply it so far. For income generated outside the DR by work you do not pay anything.

MikeKO · #5 04-14-2002, 12:25 AM

Quote:

Originally posted by Hillbilly
You can get Satellite services, both legal and illegal....

books? No problem, except if you use one of the commercial forwarders: Business Mail or EPS you get taken for an arm and a leg on the weight. Better try and sign up with one of the missionary organizacions that fly in stuff on a regular basis.

As for US IRS on taxes..How can they tax what they don't know about?

HB

Hillbilly,

If I could impose a bit more.. couple of followups.

1. Who are the missionary organizations you refer to? I've seen references to them before (I've been lurking for a few weeks).

2. Let's start legal... Who are the Sat providers? I'd like to look up the services available.

Thanks
Mike

Escott · #6 04-14-2002, 10:01 AM

Quote:

Originally posted by hansbert
I agree that Banco Popular is by far the most serious commercial bank and holds even a good position in a Forbes ranking comprising banks all over Latin America. Baninter, Banco del Progreso and BHD are also serious and recommendable.
As far as DR taxes are concerned you pay income taxes provided that you are domiciled in this country like any other Dominican or foreigner. As a natural person (individual) for income generated in the country net income lower than appr. 120000 RD Peso per year is taxfree.These figures are adjusted periodically. For income exceeding this amount you pay 15% to 25%. For income generated outside the DR if it comes from investments the first two years you do not pay taxes, beginning with the third year of residence -according to the valid laws- theoretically you do pay taxes but they do not apply it so far. For income generated outside the DR by work you do not pay anything.

I understand that no taxes are due on either interest earned in the DR nor any monies that are earned abroad to the DR.

Banks in the DR do NOT report to the US IRS which of course is your responsibility to either report or NOT report. They only require a valid passport or Cedula in order to open a account. Some banks require a letter of recommendation from another bank.

Hope this helps.

Escott

Franky · #7 01-17-2003, 08:08 PM

Quote:

Originally posted by hansbert
For income generated outside the DR if it comes from investments the first two years you do not pay taxes, beginning with the third year of residence -according to the valid laws- theoretically you do pay taxes but they do not apply it so far. For income generated outside the DR by work you do not pay anything.

Can you explain the comment "they do not apply it so far"?

As an official resident of the DR, don't you have to file a tax return and if your not claiming any income (investment or otherwise), wouldn't they (Gov't) wonder how your able to afford living in DR?

Ken · #8 01-17-2003, 08:41 PM

I have been a resident of the DR for 16 years and have never filed a tax statement with the DR government. There are a great many ways that I could be getting my income to live on, most of them not subject to taxation by the Dominican government.

As a US citizen, the tax statement I must file is with IRS.