Dominican Republic: Transfer pricing compliance; free trade zone waivers

Dominican Republic, free trade zones

Taxpayers conducting intercompany transactions must file an annual special transfer pricing return (Declaración Informativa de Operaciones entre Relacionados—DIOR) as well as a transfer pricing study that includes an independent analysis of the reported intercompany transaction(s).

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The free trade zone rules do not expressly providing an exception to these reporting requirements. However, the tax administration (Dirección General de Impuestos Internos—DGII) is allowing entities located in free trade zones to apply for a ruling request for a compliance waiver. A waiver would allow entities operating in free trade zones to be exempt from the filing of the DIOR and of the transfer pricing study.

 

Read a December 2016 report (English) [PDF 215 KB] and (Spanish) [PDF 210 KB] prepared by the KPMG member firm in the Dominican Republic: Free Trade Zones’ Transfer Pricing Compliance Obligations 

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