Santo Domingo, Dominican Republic. – Effective September 21st 2017, the Dominican Tax Authority (DGII), has been requiring all corporations, and entities without legal personality, such as trusts, investments funds and similar legal vehicles, to identify their respective ultimate beneficial owners pursuant to Law 155-07 against Money Laundering and Terrorism Financing. To this end, the DGII has updated Form RC-02 for the registration and update of information on legal entities (Formulario de Declaración Jurada de Registro y Actualización de Datos de Personas Jurídicas) and created a new Form (RC-03) for the registration and update of information on separate patrimonies (Formulario de Declaración Jurada de Registro y Actualización de Datos de Patrimonios Separados).
Form RC-02 now includes a new Annex D, which must be completed by all taxpayers at the moment of their incorporation or when they are modifying information on the National Taxpayer Registry (Registro Nacional de Contribuyentes). New Form RC-03 needs to be completed when registering or updating data on trusts, investment funds and similar legal vehicles, specially its Annex C, which specifically requires the disclosure of data on ultimate beneficial owners.
Moreover, since October 1, 2017, corporations are being required to complete a new IR-2 form for their Annual Tax Declarations, while non-profit organizations have to use a new ISFL form for their annual informative tax declaration. The IR-2 Form includes new annexes H-1 and H-2, while the ISFL form includes a new annex C, which require the identification of ultimate beneficial owners.
The implementation of these new forms and procedures by the DGII, is part of a strategy to strengthen the formal duty to register and update information on the National Taxpayer Registry, enhance fiscal transparency, the exchange of information for tax purposes and the prevention of money laundering and terrorism financing.