Dominican Republic tops region’s tax dodging; no cure ‘possible’
Santo Domingo.- Despite the non-compliance with the ITBIS (VAT) tax declined to 43% in recent years the Dominican Republic still has the highest evasion in Latin America and the Caribbean.
Internal Taxes (DGII) director Magín Díaz, made the statement Wed. in the lecture on fiscal reforms for the Herrera and Santo Domingo Province Industrial Association ( AEIH).
Diaz said compared to other countries in the region, only Guatemala is close to that percentage, with 40.3% and the other countries are under 30%. “It is clear that from the Latin American countries mentioned in an ECLAC study last year, we have the highest noncompliance.”
He said the percentage of non-compliance with the Income Tax in companies and individuals exceeds 60%.
Despite the high evasion rate, the official said there’s no measure that makes it possible to reduce the illegality.