UNE proposes tax system reforms to improve business liquidity
The National Union of Entrepreneurs (UNE) has put forward a series of proposals aimed at transforming the current tax structure in the Dominican Republic. The main objective of these suggestions is to alleviate the financial pressure faced by companies, specifically regarding ITBIS withholdings and Income Tax (ISR) advances.
Julio García Batista, president of the organization, emphasized the importance of transitioning toward a fiscal model capable of distinguishing between the behavior and risk level of each taxpayer, thereby promoting a more equitable environment for the productive sector.
Main points of the business proposal
- Adjustment in ITBIS withholdings: The UNE suggests that these withholdings be adapted to the compliance history of each company, allowing businesses with an impeccable track record to have a lower administrative and financial burden.
- Review of ISR advances: It is proposed that the payment of advances be adjusted to the operational reality of businesses during the fiscal year, avoiding the commitment of capital essential for the daily operation of companies.
- Optimization of refunds: The business sector requests greater agility in the processes for offsetting credit balances, as the immobilization of these resources for long periods directly affects working capital.
Relieving those who comply and closing the gap with those who do not are not opposing objectives. They are, in reality, the same task viewed from two angles.
Julio García Batista, president of the UNE.
García Batista emphasized that, by facilitating compliance with obligations for responsible taxpayers, the tax administration can focus its audit efforts more efficiently on those sectors where there is a higher risk of non-compliance. This strategy, according to the entity, not only improves the cash flow of companies but also encourages the formalization of the business fabric.
Administrative efficiency and electronic invoicing
Another pillar of the UNE’s proposal is the use of technology. With the advancement of electronic invoicing, the organization maintains that the Tax Administration possesses sufficient information to prevent taxpayers from having to provide the same data repeatedly through different platforms.
At Alofoke Deportes, we closely follow these initiatives that seek to strengthen the business climate in the country, promoting a fiscal administration that is more proportional, agile, and adapted to current economic challenges.
