Dominican Republic (DO)

Jurisdiction Overview

IDQuestionAnswer
479 *LO Update: Is the update of legal ownership information mandatory for all partners? Yes
 Data Date: 2019

Notes

 
Partnerships must update changes in the partners identity with the commercial registry and with the tax authorities (GF 2016: 37-38). In 2019, the Global Forum confirms that ownership information must be updated "in the event of any changes to the information supplied at the time of registration" (GF 2019: 46)
 
Otherwise, the GF informs that out of the 142 131 companies registered with the tax authority (GF 2019: 38), there are 5 656 inactive companies and 80 710 withdrawn companies (inactive for more than 5 years and potentially subject to liquidation) of which 3 389 in process of dissolution/liquidation (GF 2019: 34). Importantly: "the Dominican Republic reported that inactive and withdrawn companies still have a legal existence, and may continue to conduct business outside of the Dominican Republic. This is also the case for companies which failed to renew their business certificate with the Mercantile Registry (GF 2019: 34). Thus, 58% of companies registered with tax authorities are non-compliant with tax filing obligations (either inactive or "withdrawn", and not in process of dissolution). However, the Global Forum informs that "the DGII [tax authority] is in the process of liquidating about 77 000 companies [54% of registered] that never updated their legal status following the reform of the Commercial Entities Law, or that are considered withdrawn." (GF 2019: 35 [TJN's note]). We consider that although non-compliance with filing of ownerhsip information through tax returns is high, the initiative of the tax administration to liquidate such copmanies shows that compliance is being enforced.

Sources

GF 2016: 37-38; GF 2019: 34, 35, 38, 46