Dominican Republic Enhances Banking Compliance Procedures

The Dominican Republic is taking significant steps to strengthen its financial infrastructure and reduce tax evasion by implementing new banking compliance procedures. As part of these efforts, the government has introduced a standardized electronic invoicing system, which will become mandatory for all taxpayers in the country.

New Invoicing Model: fE-Invoicing/CTC Model

The new regulations require both issuers and receivers of invoices to use the “fE-Invoicing/CTC Model” for post-clearance procedures. This model is provided by the Dirección General de Impuestos Internos (DGII), the country’s tax administration authority.

Key Features of the Electronic Invoicing System

• The system will be based on a local XML format.
• Both issuers and receivers must use electronic signatures, which are now mandatory.
• Businesses will be required to maintain records of invoices for a period of 10 years.
• Provisions allow for the archiving of such documents abroad under certain conditions.

Implementation Timeline

The use of the electronic invoicing system will become mandatory in stages:

• Large taxpayers: January-May 2024
• Medium-sized taxpayers: January-May 2025
• Small and micro-taxpayers: January-May 2026

These new regulations aim to enhance banking compliance procedures and reduce tax evasion in the Dominican Republic. By implementing a standardized electronic invoicing system, the country is taking a significant step towards strengthening its financial infrastructure and promoting transparency in business transactions.