Dominican Republic (DO)

Jurisdiction Overview

IDQuestionAnswer
477 *BO Record: Does the registration of domestic limited partnerships comprise information on the beneficial ownership of all partners? Yes, all partnerships require recording of all partners’ beneficial ownership.
 Data Date: 2019

Notes

 
In 2019, the Global Forum informs that the new law (No. 155-17) provides that "all legal entities and arrangements are required to identify their beneficial owner, and declare it to the DGII [tax authority] by 1 May 2018. This includes foreign entities and arrangements when they have a permanent establishment or a place of effective management in the Dominican Republic (art. 50c(1), Tax Code)" (GF 2019: 39 [TJN's note]). Furthermore, the Global Forum notes: "The Tax Code and Regulation No. 139-98 establish that all Dominican or foreign companies obtaining income derived from Dominican sources are obliged to present their annual income tax declaration. If the company did not receive any income, it must complete an informative declaration including the information requirements established in Law No. 155-17 with the amendment of Art. 50, which sets the obligation to identify the beneficial ownership regardless of whether it has operations or not in Dominican Republic, as well as any update" (GF 2019: 39-40 [footnote]).
 
In the Dominican Republic, beneficial ownership is defined under Law 155-77 of June 2017 (GF 2019: 39). In 2019, the Global Forum considers that the definition conforms to the standard: "The beneficial owner is defined as the natural person who has the effective control or is the ultimate owner of a legal entity or an entity without legal personality (art. 104 paragraph 2, Law 155-17). A beneficial owner may be the natural person who will benefit from the person(s) making a transaction, even when the natural person does not appear as the owner or as the person formally controlling that operation. In the case of an ownership chain of titles, the law provides that natural person(s) holding or controlling directly or indirectly 20% of the shares of a legal entity, or the person with effective control or on whose behalf the transaction is made, must be identified as beneficial owner. Control can be exercised through the making of relevant or strategic decisions that affect the legal person. Persons who benefit from the capital or assets of the company must also be identified (paragraph 3). In case it is not possible to identify the beneficial owner applying the definition contained in the law, a senior managing official should be identified (art. 38, Regulation 408-17)" (GF 2019: 39).

Sources

GF 2016: 23; GF 2019: 39