NewsWhore
03-26-2009, 06:20 PM
The Minister of Hacienda and the director general of the Department of Taxes (DGII) announced yesterday that they are proposing that the Presidency authorize a 24% reduction in taxes on deposits repatriated from bank accounts overseas. The deposits would only be taxed at 1% on earnings of deposits from funds that are brought back to the country.
Bengoa said that the suggestion about returning overseas money has been motivated by the fact that many people have approached the ministry and the DGII to ask about conditions for repatriating money deposited overseas. These people were motivated, in turn, by the uncertainty surrounding the economic climate of the international financial institutions. He indicated that after the 2003 banking crisis, caused by the failure of several banks, and the resulting IMF intervention, local banks underwent a process of strengthening, resulting in an index of solvency of 14%, while the index required by the Basel Accords is just 8%, and the level demanded by Dominican standards is 10%. Moreover, Bengoa said that only 10% of the Dominican financial system's assets are in the hands of foreign banks, so that from his point of view there is no risk of direct contamination by the world crisis.
Hacienda Minister Vicente Bengoa and DGII director Juan Hernandez said that they are also asking for a deduction for tax purposes on expenses related to health issues of Dominican families. They said that they would include these measures as part of a bill being introduced into Congress that calls for permitting deductions for the cost of children's education that are not working. Bengoa added that the ability to deduct health expenses from income tax would benefit the middle class.
Senate president Reinaldo Pared Perez said the Senate would convene on Tuesday to study the bills.
More... (http://www.dr1.com/index.html#2)
Bengoa said that the suggestion about returning overseas money has been motivated by the fact that many people have approached the ministry and the DGII to ask about conditions for repatriating money deposited overseas. These people were motivated, in turn, by the uncertainty surrounding the economic climate of the international financial institutions. He indicated that after the 2003 banking crisis, caused by the failure of several banks, and the resulting IMF intervention, local banks underwent a process of strengthening, resulting in an index of solvency of 14%, while the index required by the Basel Accords is just 8%, and the level demanded by Dominican standards is 10%. Moreover, Bengoa said that only 10% of the Dominican financial system's assets are in the hands of foreign banks, so that from his point of view there is no risk of direct contamination by the world crisis.
Hacienda Minister Vicente Bengoa and DGII director Juan Hernandez said that they are also asking for a deduction for tax purposes on expenses related to health issues of Dominican families. They said that they would include these measures as part of a bill being introduced into Congress that calls for permitting deductions for the cost of children's education that are not working. Bengoa added that the ability to deduct health expenses from income tax would benefit the middle class.
Senate president Reinaldo Pared Perez said the Senate would convene on Tuesday to study the bills.
More... (http://www.dr1.com/index.html#2)