Local July 10, 2024 | 8:24 am

Senate approves bill modifying inheritance and donation tax

Santo Domingo.- The Senate of the Republic has urgently approved a bill in two consecutive readings that modifies Article 6 of Law 2569 of 1950, concerning the Tax on Inheritances and Donations. The new regulation aims to amend Law 288-04 on tax reform to eliminate the inheritance tax, benefiting the poorest segments of the population.

This initiative was presented by Senators Dionis Sánchez, Ramón Rogelio Genao, Santiago José Zorrilla, Franklin Romero, Ginnette Bournigal de Jiménez, Cristóbal Castillo, Franklin Peña, and Valentín Medrano.

Under the revised Article 6, the donation tax rate, after applicable deductions, will be set at 25% of the donation’s value. It also specifies that the resources and sanctions for this tax will align with those established in the Tax Code.

The second recital states that succession or inheritance typically involves the transfer of assets on which the original owner has already met tax obligations, both during transfer and recurring payments, thus satisfying state obligations.

The third article specifies that heirs have three months, with possible extensions, to pay succession tax rights. Due to various situations, family agreements, or lack of resources, heirs sometimes cannot complete legal procedures or gather sufficient funds to pay inheritance rights.

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