Successful investors have been able to pay less taxes, resulting in an increase in their assets, which has allowed them to build wealth by generating higher rental income.
Where do you have savings when buying on behalf of a company?
- Interest on loans.
- Legal and closing costs.
- Book depreciation of real estate.
- Payment of taxes, such as IPI payments
- It avoids or reduces the payment of inheritance taxes due to death, the company survives.
- Expenses generated by the property are deducted, such as,
- Payment of maintenance
- Extra fees for repairs.
- Purchase of household appliances.
- Acquisition of furniture.
- Payment of internet, cable and electricity services.
Different items are presented before the DGII as company expenses that when purchasing as an individual it is not possible to present as expenses.
Corporations, businesses or companies in the Dominican Republic have benefited from government policies that lend resources at attractive rates to companies to stimulate the economy.
𝐃𝐄𝐒𝐕𝐄𝐍𝐓𝐀𝐉𝐀𝐒
1- Shares are personal property, and as such, transfers of shares are subject to withholding tax of 2% of the value of the transfer, when the seller is an individual.
2- Companies are subject to the payment of tax on assets, equivalent to 1% per year of the value of the sum of assets, except for land located in rural areas.
Types of companies that can be incorporated in the Dominican Republic.
The legislation that is related to companies is in the Code of Commerce. According to the list published in the Contadores Dominicanos website, these are the types of companies by their legal formation:
- Limited Liability Company (LLC).
- Individual Limited Liability Company (EIRL).
- Simplified Joint Stock Company (SAS).
- Public Limited Company (SA).
- Partnership in collective name.
- Limited partnership.
- Limited partnership by shares.
