Cut taxes to allow return of Dominican capital

The tax agencies will submit a bill that allows the entrance of capitals that Dominicans hold abroad, by paying only a 1% tax instead of the current 25%.

Hacienda minister Vicente Bengoa and Internal Taxes director Juan Hernandez, made the announcement in a press conference yesterday, where they said the measure aims to make it easy for Dominicans to bring their capitals to invest them here and withdraw them from the international financial sector, where massive bankruptcies have occurred.

Bengoa clarified that the measure implies some conditions, such as that the funds must be deposited in foreign banks and not of doubtful origin, to keep the tax break from being used as a source of money laundering.

He said the suggestion responds to the interest by Dominican businesspersons who’ve expressed their desire to bring their capital abroad, but haven’t done so because of the high taxes they would have to pay.

The legislation would be submitted to Congress as soon as president Leonel Fernandez approves the suggestion.