| Login | |
| Currency | |
| Weather | |
| |
Tax exemption for salaries up to RD$ 33,326.92
posted on: Feb 1 2012 8:16 by The Reporter. Viewed 233 times.
Salaries of up to RD$ 33,326.
92 (US$ 860) per month are now exempt from income tax (ISR), in accordance with the annual adjustment for inflation, published in the revenue table by the Dominican Income Tax Department (DGII), this year.
The measure applies retroactively to January 1 of each year and will mean a saving in workers' monthly salaries.
In 2011 the tax exemption was for wages up to RD$ 30,880 monthly. For example, a salary of RD$ 30,950.00 paid RD$ 3.45 in 2011 and this year will pay nothing. A salary of RD$ 33,350.00 paid RD$ 363.45 last year and now will only pay RD$ 3.46 per month in tax, equivalent to a saving of RD$ 300.
A salary of RD$ 40,000 paid tax of RD$ 1,360.95 and today pays RD$ 1,000.96. A salary of RD$ 50,000 paid tax of RD$ 3,041.42 and will now be taxed by RD$ 2,501.43, a monthly saving of RD$ 539.99 .
A salary in 2011 of RD$ 65,000 will now save RD$ 568.47 per month.
The new salary income tax bands take into account inflation in the year 2011 of 7.76% of GDP, according to the Central Bank.
The ISR applied to physical persons has several scales, 15%, 20% up to a maximum of 25%. Legal persons pay a rate of 29% of their income, a measure which was modified by law 139-11.
Salary indexing (adjustment) is covered in Article 327 of the tax code and point 105 in the income tax rules 139-98.
In the Dominican Republic, 92% of salaries (1.2 million employees) are now exempt from paying income tax, i.e. 92% of workers earn monthly salaries less than RD$ 33,326.92 every month.
The tax provision is generally made in the first 15 days of the first month of each year. The adjustment for inflation is made every year automatically, and along with it a new wage scale, which is published on the DGII's website.
Digg it!
del.icio.us
MySpace
Facebook
Fark
Reddit
Newsvine