Santo Domingo.- Senator Omar Fernández reintroduced a bill aimed at modifying the Tax Code to exempt micro-enterprises from paying the annual advance tax to the General Directorate of Internal Revenue (DGII). The proposal also seeks to reduce the advance payment requirement for small and medium-sized businesses, adjusting it to 50% of the taxes paid based on the previous year’s operations. This measure is intended to stimulate economic growth by supporting the creation and sustainability of new businesses.
The advance payment is based on projected company profits and is currently mandatory. Fernández argued that this system decapitalizes companies, particularly micro-enterprises with fewer than ten employees, putting them at risk of bankruptcy. Under the proposed law, only businesses with up to 250 employees would continue making advance payments, but at a reduced rate.
During his presentation, Fernández noted that most advance payments—90%—come from large companies, which account for just 5% of the business sector. The bill, aimed at reducing the tax burden on entrepreneurs, was referred to the Finance Committee for further discussion in future legislative sessions.