PST, a useful tool for SMMEs

X useful tool for the tax compliance is the PST (simplified programme of taxation), because applies not only for individuals with annual incomes of up to RD$ 6.8 million, but for small businesses (SMEs).

The PST applies for the payment of tax on income (ISR) and the tax on the transfer of industrial goods and services (Itbis), through two schemes: income-based or based on purchases.

To join the PST is necessary to fill out a form by the virtual path or attending a Bureau of internal revenue, which is must wait response of the body of at least 60 days.

Once accepted by the DGII, the taxpayer received the income-based regime should be his sworn statement of income at the latest date at which must pay the first installment of the income tax that is the last day of February. The second installment of the ISR must be u000apaid until the last day of August of the same year of the Declaration, with the advantage that there is no need to show the numbers of tax receipts (NCF).

Natural persons or businesses of sole owner, therefore, are free from payment of income tax during the first half of the year, but also free of payment of advances, and the tax on assets.

The amount payable is that resulting from 40 per cent less than the income taxed.

One important fact is that natural persons who are salaried and benefit the contributory exemption of the income tax which, by the end of this year would cover the RD$ 33,260, taking into account that annual inflation is 7.8% of GDP at the end of 2011. However, even the DGII has not published table of retention of the ISR.

The PST applies to industries with sales of up to RD$ 30 million annual (supplies, pharmacies, bakeries and other stores colmadones).

Natural persons or u000asole owner, without organized accounting business, includes salon, liberal professionals (lawyers, doctors, journalists and others).

Stakeholders must manage their income with 90 days prior to the fiscal year, which means they can have time for the deadline afforded by the DGII to respond if holds or not the application for admission.

Shopping
the PST based on purchases, the DGII determines the gross sales of the taxpayer, to which applies a magen of profitability according to the business of the taxpayer.

The first is 50% of the resulting value of the PST, at the latest on July 31 of each year, the second 25% of the value at the latest on 15 October, and the third quota, the remaining 25%, at the latest on 15 December of each year, in accordance with law regulations.

Information
according to information published by Inland Revenue, only eligible for the PST the u000ataxpayers whose tax closure is December 31, but also keep up to date in some of their taxes.

Taxpayers operations correspond to the fiscal period from January 1 to December 31 of each year and once registered to leave the taxpayer PSRT.

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