Dominican Republic (DO)

Jurisdiction Overview

480 *BO Update: Is the update of beneficial ownership information mandatory for all partners? Yes
 Data Date: 2019


According to the Global Forum report of 2019: "Legal entities and arrangements are required to identify and maintain updated information on their beneficial owner(s) with the DGII (i) at the time of registration in the RNC through the completion of a specific form (annex D of the form RC-02), (ii) when a change in beneficial ownership occurs (within ten days), and (iii) every year when filing an income tax return (form IR2)" (GF 2019: 40).
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of the 142 131 companies registered with the tax authority (GF 2019: 38), there are 5 656 inactive companies and 80 710 withdrawn companies (inactive for more than 5 years and potentially subject to liquidation) of which 3 389 in process of dissolution/liquidation (GF 2019: 34). Importantly: "the Dominican Republic reported that inactive and withdrawn companies still have a legal existence, and may continue to conduct business outside of the Dominican Republic.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58% of companies registered with tax authorities are non-compliant with tax filing obligations (either inactive or "withdrawn", and not in process of dissolution).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that never updated their legal status following the reform of the Commercial Entities Law, or that are considered withdrawn."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.


GF 2019: 34, 35, 38, 40