Dominican Republic
Overview of CbC reporting requirements
First reporting fiscal year: Commencing on or after 1 January 2022
Consolidated group revenue threshold: DOP 38,800,000,000
Filing deadline: 12 months following the end of the reporting fiscal year
The domestic legal and administrative framework
The Dominican Republic’s 2020/2021 peer review confirmed that the Dominican Republic has a legislative filing requirement in effect, but did not include a review of that legislation. The Dominican Republic’s legislation has now been reviewed.
The Dominican Republic has a legislative filing requirement which applies to all Ultimate Parent Entities of MNE Groups above a certain threshold and which requires inclusion of all constituent entities.1 2
A CbC reporting filing obligation applies in the Dominican Republic for fiscal years commencing in 2022 and filing is required 12 months after the reporting year end. The Dominican Republic has enforcement requirements to ensure compliance with rules on CbC reporting.
There is one recommendation related to improving the legislation.
The local filing provision
The Dominican Republic has a legislative requirement for local filing which is in line with the standard but which is in effect despite the Dominican Republic not yet meeting all of the consistency, confidentiality and appropriate use conditions. It is therefore recommended that the Dominican Republic take steps to ensure that local filing only occurs in the circumstances permitted under the minimum standard.
The exchange of information framework
The Dominican Republic has no bilateral relationships in place for the exchange of CbC reports nor processes to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework.
It is recommended that the Dominican Republic take steps to have qualifying competent authority agreements in effect with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions and with which the Dominican Republic has an international exchange of information agreement in effect that allows for the automatic exchange of tax information. This recommendation remains in place since the 2019/2020 peer review.
It is recommended that the Dominican Republic take steps to implement the necessary processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework. This recommendation remains in place since the 2019/2020 peer review.
Appropriate use of CbC reports
The Dominican Republic does not yet have controls in place to ensure the appropriate use of CbC reports.
It is recommended that the Dominican Republic take steps to ensure that the appropriate use condition is met ahead of the first exchanges of information. This recommendation remains in place since the 2019/2020 peer review.