Omar Fernández reintroduces bill to eliminate tax advance for MSMEs

Santo Domingo.- Senator Omar Fernández, who represents the National District, has reintroduced a bill in the Senate seeking to eliminate the advance payment of income tax for micro, small and medium-sized enterprises (MSMEs) in the Dominican Republic. The proposal, presented for the fourth time, aims to improve liquidity for small businesses and encourage the creation and sustainability of new enterprises.

The advance payment is a mandatory prepayment of income tax based on projected profits. Fernández argues that this system forces many companies to pay taxes on income they have not yet earned, limiting their financial capacity. He noted that more than 85% of registered companies in the country are micro or small businesses, making it essential to create a more favorable tax environment for their growth.

According to the senator, removing the advance payment for MSMEs would have minimal impact on government revenue while helping stimulate economic activity. He also reintroduced other legislative proposals, including measures to eliminate double taxation on property taxes for homeowners over 65, remove mortgage taxes, eliminate advance payments for the agricultural sector, facilitate tax compliance and modernize the country’s commercial and judicial systems.