New tax move

[NewsWhore]

The Department of Taxes (DGII) has instructed all businesses that they will need to withhold the ITBIS tax (local VAT) even for the category of so-called informal suppliers. The order is for businesses to issue invoices with the Tax Receipt Number of the informal provider in order to back their purchases. The measure is contained in the General Rule 08-2010 that the DGII issued in order to strengthen the control mechanisms in the process of collection of the ITBIS, in the transactions by informal providers of sales of taxable goods. Diario Libre says that the new rule, which enters into force beginning on 1 December, establishes that the businesses should retain 75% of the tax that is supposed to be applied on the invoice and send the information to the DGII in the manner outlined in General Rule 01-2007, which means that 25% would go to the company, according to commentaries. The DGII is empowered by the tax code, in articles 8 and 35, to establish as withholding agents for taxes, physical and legal entities, which due to the nature of their activities intervene in activities or operations in which they carry out the collection at the source that produces the withholding of the tax.

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