January-May collections grew by 14.9 % over the previous year

The General Directorate of Internal Taxes (DGII) reports that the collection for the period January-May 2024 amounts to RD 370,178.7 million, representing a growth of 14.9% with respect to the same period of the previous year.

Therefore, in the absence of non-recurring revenues, the collection grows 12.4 %, RD 39,310.5 million more than January-May 2023. This period shows a compliance of 102.8 % with respect to the estimate.

The collection of January-May 2024 experienced a greater dynamism of the Dominican economic activity. This positive behavior is observed in the main taxes, such as the Tax on Transfers of Industrialized Goods and Services (ITBIS), Corporate Income Tax, and Tax on Assets and Tax on Individuals. These three taxes show double-digit year-on-year growth.

As for the recently concluded first semester, the accumulated collections for the period January-June 2024 amount to RD 431,940.7 million, which represents a growth of 9.9% with RD 38,913.2 million more than the same period of 2023. In addition to a tax compliance of 102.1% with RD 8,815.5 million above the initially estimated amount.

In view of the above, it should be clarified that the article published by N Digital: “Hard blow for tax collections, down -1.2 % in 2024 despite DR growth” – N Digital uses data from only the month of May and is confused with the accumulated collection. This is evident in the third paragraph, where they speak of a collection of RD 67,779.8 million for January-May, when the collection for the period is almost RD 400,000 million. Although the month of May (not the accumulated) indeed shows a decrease of 1.2 %, this is not a reason for concern, since it is explained by a change in the deadline for the Corporate Income Tax.

This declaration had a May deadline last year and this year it was declared in April. Given the above, it would not be a fair comparison to compare May year-on-year, considering the differences in obligations. Especially, when considering that almost 90% of the companies obliged to file their income tax returns in that period (April 2024 or May 2023).

This tax administration headed by the general director, Luis Valdez Veras, remains open to the citizenship and always willing to share with the media the truthful collection data that the institution has and that are monthly disclosed to the whole society.

Source:Presidencia.gob.do

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Dominican Republic Live Editor

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