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What are Companies’ Accounting and Tax Requirements in the Dominican Republic?

What are Companies’ Accounting and Tax Requirements in the Dominican Republic?

When it comes to setting up a business in the Dominican Republic, you must consider all local regulations, including accounting and tax requirements. In this way, you will ensure a smooth market entry and avoid compliance issues. To support your company incorporation and ongoing operations in the Dominican Republic, be aware of and comply with the following accounting and tax requirements. Accounting and tax requirements Executives doing business in the Dominican Republic must be aware of accounting and tax requirements. The Directorate General of Internal Taxes (DGII) is the main tax authority in the Dominican Republic. Tax obligations and rights are established by law and are allocated based on the taxpayer's turn on activities. These are provided from registration to the national Taxpayer Registry (RNC) and must be presented on the established dates. In the Dominican Republic, there are several tax requirements that companies doing business in the country must take into account, such as: IR2- Annual Affidavit of Corporate Income Tax (ISR): Companies that receive income during the financial year must pay 27% on taxable income from legal entities domiciled in the country, this excludes rebates.IR1- Annual Affidavit of Personal Income Tax: Persons who received an income through wages or investments, loans, property, or services must file for the deadline of March 31st each year. ACT-Taxable Assets: Applicable property assets are taxed by 1% on the total value of the property held by the taxpayer. The tax payable must be paid in two equal instalments. ITBIS-Tax on the...

Peru and the UK Sign Reconstruction Agreement

Peru and the UK Sign Reconstruction Agreement

In June 2020, the UK government won Peru’s bid for the “Integral plan for the reconstruction of the damaged infrastructure of the Northern regions of Peru affected by floods in 2017", also called the Reconstruction Agreement or Programme. This government-to-government agreement involves the reconstruction of Peruvian infrastructure and the construction of preventative measures against natural disasters. Parties involved in the Peru-UK Reconstruction Agreement The Reconstruction Agreement involves an investment of approximately US$2.020 billion. The Reconstruction Agreement was signed on 22 June 2020, between the Peruvian government, represented by the Authority for Reconstruction with Changes (ARCC), and the UK government, represented by the Department for International Trade (DIT). The investment is worth S/7 billion (approximately US$2.020 billion) and will last for 2 years, with allowance for a third year. The project will be carried out by 3 companies forming the UK Delivery Team: Mace Limited, Arup Limited and Gleeds International Limited. The Peru-UK partnership is an enduring one. The UK was Peru’s lead partner while delivering the Lima 2019 Games, the fourth largest sports event in the world. Following the success of this partnership, the Reconstruction Agreement only further strengthens these regional commitments. Reconstruction projects The 2017 Coastal El Niño is a natural disaster that severely affected many Peruvian regions. Heavy rains, landslides, and floods destroyed infrastructure and crops, leaving people homeless. The Peru-UK Reconstruction Agreement...

Changes to Bolivia’s Tax System During COVID-19 Response

Changes to Bolivia’s Tax System During COVID-19 Response

Understand key changes to Bolivia's tax system during the government's response to COVID-19. Importantly, deadlines for filing certain key corporate compliance documents have been deferred. Temporary measures aim to support businesses facing challenges with cash flows or having problems reporting their monthly and annual obligations In order to confront the consequences of the government's response to the COVID-19 outbreak, these temporary measures aim to support companies, small businesses and individuals facing difficult times with their cash flows or having problems reporting their monthly and annual obligations at the country's Tax Office (Servicio de Impuestos Nacionales). Find out these new deadlines and how your business may be impacted by these measures, and seek expert local accounting guidance to get support for your business during this time. Deadlines deferred in Bolivia’s tax system The government has announced a number of changes to Bolivia’s tax system to help the taxpayers affected by quarantine regulations in the country. Key relevant changes for businesses to take note revolve around tax declarations. The government has set the following deferred deadlines for tax declarations in Bolivia: Taxes and other obligationsRegular date for declarationNew date for declarationValue Added Tax (VAT)February-May 2020July 2020Transfer TaxFebruary-May 2020July 2020Income Tax Fiscal year 201929 April 2020 For taxpayers with fiscal year ending on 31 December 201929 May 2020  for Great and Main Contributors (GRACO and PRICO).31 July 2020 for taxpayers catalogued as...

What are the Largest Industries in Guatemala for Business?

What are the Largest Industries in Guatemala for Business?

Guatemala is the largest economy in Central America. Therefore, taking a look at the largest industries in Guatemala is worthwhile for those, who are seeking business opportunities in this country.More than half of Guatemala's economic activity takes place in four sectors: manufacturing (20%), commerce (18%), private sector (14%), and agriculture (12%). In addition, Guatemala has the 80th largest export economy in the world. Statistics estimate the value of its exported goods at approximately US$ 11.8 billion.In this article, we will expose some of the largest industries in Guatemala.  Investors recently have planned a new highway in Guatemala as a private investment project.  The private sector in Guatemala The private sector is the driving force of the Guatemalan economy. In fact, the private sector is responsible for around 85% of the national GDP. The majority of this sector is active in the following fields: industry, agriculture, and tourism. Being one of Guatemala’s largest industries, this sector is steadily growing and has even taken on some traditionally public services in recent years. This increase in the private sector has led to a decrease in government size. Services such as airports, banking institutions, and even public utilities are now managed by private companies. As an example, private investors recently have planned a new highway in Guatemala as a private investment project.  Manufacture and agriculture sectors The industrial, manufacturing, and agricultural sectors are part of the largest industries in Guatemala. These sectors...

Why are Foreign Companies Choosing to Do Business in Uruguay?

Why are Foreign Companies Choosing to Do Business in Uruguay?

Find out the benefits and incentives to do business in Uruguay in 2020. Despite turbulent economic times in Latin America due to COVID-19 restrictions, Uruguay remains an increasingly popular destination for expanding businesses. Uruguay is a small country with approximately 3,500,000 inhabitants. It is a founding member of Mercosur and for the last decade its political and economic stability has attracted the attention of foreign investors seeking to incorporate a company and do business in Uruguay. In Uruguay, foreign direct investment (FDI) has reached record levels, making the country one of the top receivers of FDI, in terms of GDP in South America. This growth in foreign investment is associated to its attractive free zones, free trade agreements, as well as its participation in Mercosur, ALADI and other regional blocks. Doing business in Uruguay is promising in 2020 given its pro-investment policies. Doing business in Uruguay The country has a pro-investment policy that eliminates restrictions on the use of foreign capital, allowing for free movement of capital and bank secrecy. In September 2019, the creation of a new legal entity, a Sociedad Anónima Simplificada, or SAS, sought to boost business in Uruguay. This new structure minimizes the costs of incorporation, streamlines the process of creating companies in Uruguay by promoting the use of digital platforms in all phases of the process, and allows companies already incorporated in the country to transform their legal entity to a SAS. Laws that promote business in Uruguay The Uruguayan...

Top Sectors for Business Between Canada and Mexico

Top Sectors for Business Between Canada and Mexico

Business opportunities between Canada and Mexico are often overshadowed by trade with the United States. Despite this, according to the World Integrated Trade Solution, Mexico is Canada’s fifth-largest trading partner. Mexico also has the eleventh-largest economy in the world with a population of almost 300 million. Business between Canada and Mexico has strengthened since creating the North American Free Trade Agreement (NAFTA) in 1994. NAFTA is a free trade region between Canada, Mexico and the United States.  We outline top sectors and opportunities for business between Canada and Mexico. Trade and business between Canada and Mexico According to the World Integrated Trade Solution, Mexico is Canada’s fifth-largest trading partner. There are two major trade agreements that have created stronger economic ties between Canada and Mexico. The Canada-United States-Mexico Agreement (CUSMA, also known as T-MEC or USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) provide Canada and Mexico with preferential access to each other’s markets. The best sectors for business between Canada and Mexico have the highest growth potential, policy openness and leverage Canadian strengths. Top sectors include:  AerospaceMiningOil & gasAgriculture, food and beverages Aerospace In this sector, business between Canada and Mexico initiated in 2004 with the establishment of the Canadian aerospace company, Bombardier, in Mexico. This later sparked international interest towards the potential in the aerospace sector in Mexico. Since then, the...

Changes to Accounting Obligations in Ecuador During COVID-19

Changes to Accounting Obligations in Ecuador During COVID-19

Learn how Ecuador has modified some of its accounting obligations for companies due to the current situation and economic uncertainty facing the country. Ecuador, like many other countries, has been affected economically, politically and socially by COVID-19. However, despite the current situation and existing restrictions, companies operating in the country have continued their commercial activities and must comply with the accounting obligations established by the government. The Ecuadorian government has taken a series of measures and issued important resolutions on accounting obligations in Ecuador in order to support entrepreneurs and prevent them from going bankrupt. President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. Economic measures in place During the last months, President of Ecuador Lenin Moreno has announced economic measures focused on outlining the financial steps to sustain business and the economy during the pandemic. These measures include: US$4 billion reduction in public spendingThe single tax on vehicles with an appraisal greater than US$20,000 must pay a contribution of 5% of the appraisal value.Creation of a fund for loaning to small and medium-sized companies at 5% interest, with a 3-month grace period and a 36-month term.Merge the Ministries of Telecommunications and Transport Additionally, Lenin Moreno announced that Ecuador received an international collaboration for around US$60 million as exclusive funds to face the needs that have...

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