Dominican Republic: Transfer pricing studies | KPMG | US

Dominican Republic: Transfer pricing studies, interest deductibility of related-party transactions

Dominican Republic: Transfer pricing studies

The General Agency for Internal Taxes (Dirección General de Impuestos Internos—DGII) is requesting that taxpayers provide certain documents to verify their compliance with guidelines for interest deductibility.

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The DGII, acting in its tax collector capacity, is requesting that taxpayers provide documentation regarding:

  • Transactions with related parties
  • Financial loans entered into locally or abroad
  • Interest paid to third parties during fiscal years open for tax audit

Request for transfer pricing studies

Specific documentation being requested includes:

  • Transfer pricing studies
  • Audited financial statements, with their corresponding notes
  • Information from financing entities (name, tax ID number, address, etc.) when applicable
  • Information as to whether the financing entities are related parties
  • Financial loan agreements translated to Spanish
  • The most recent corporate income tax return filed by foreign financing entities
  • Certificates from the tax authorities of the financing entity’s jurisdiction, indicating the taxes paid
  • Trial balances
  • Expenses or income accounts transfers
  • A list of interest paid in connection with loans
  • Tax adjustments
  • For each loan agreement, information regarding the lender, the amount, the interest rate agreed upon, the agreement’s initial and end-date, and other information

 

Read a March 2018 report [PDF 374 KB] prepared by the KPMG member firm in the Dominican Republic

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