Changes in the Income Tax return filing Process

March 20, 2017

Tax Newsletter

With the purpose of facilitating the fulfillment of its tax obligations, as of March 1, 2017, the DGII incorporated improvements to the filing process of the Tax Return on the Income Tax of Legal Persons (IR-2) and its Attachments and of the Assets Tax (ACT for its Spanish acronym). These improvements aim to ensure: consistency and quality of information; accuracy and organization in the completing of the forms; and quickness in the process.

The attachments of the IR-2 will be visualized according to the economic sector to which they belong and in the sequential order that they must be presented. Once the attachments are filled, the IR-2 declaration will be enabled. As long as the IR-2 has not been submitted, the attachments can be modified as many times as necessary. In the same sense, in case that you start filling the IR-2 and its attachments and cannot finish, you can save the information and access it again at another time.

The IR-2 will be completed automatically by validating the values placed in the linked boxes of the corresponding attachments. These attachments (B1, B2, B3, B4 and D) will validate the sum of the types of goods and services sent in Form 606 (purchases of goods and services) of the period and will generate an alert in case of inconsistencies. In that same sense, the IR-2 declaration will validate the information sent through Format 623 (State retentions).

On the other hand, taxpayers who belong to Special Laws or have contracts with the Dominican State, must carry out the process of updating their registry. The Tax Returns of Assets will validate the amounts declared in boxes from Attachment A of the IR-2 declaration.

Hereinafter, from these modifications, the new order of presentation will be as follows: D2, D1, D, A1-A3, B1-B3, E, G and finally the IR-2, as mentioned above. The information that is linked between forms must match exactly in their fill order, otherwise it will generate an inconsistency warning.

Finally, the items validated between Attachment B1 vs. Form 606 are as follow:

  1. Box 36 Local Purchases of the Fiscal Period (Attachment D) vs. Form 606 purchases that make up the cost of sales.
  2. Boxes 7 Attachment B (except boxes 7.2 and 7.3 for being abroad) vs Expenses for Works and Supplies of form 606.
  3. Boxes 8 Attachment B vs Form 606 Leases.
  4. Boxes 10 Attachment B vs. Representation Expenses form 606.
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