Dominican Republic: Tax Administration and all-inclusive hotel sector sign an APA

Tax Insights ()
The Tax Administration (Dirección General de Impuestos Internos — DGII, for its acronym in Spanish) and the Association of Hotels and Tourism of the Dominican Republic (ASONAHORES, for its acronym in Spanish) signed an Advance Pricing Agreement (APA) that sets out the general framework for companies in the all-inclusive hotel sector to establish individual APAs. The agreement includes the transfer pricing method that would be used to analyze the all-inclusive transactions conducted with related parties abroad. The agreement also establishes the prices from which VAT (Impuesto a la Transferencia de Bienes Industrializados — ITBIS, for its acronym in Spanish) and Income Tax (Impuesto sobre la Renta — ISR) would be calculated for the fiscal years 2013 through 2015.