As a corporate obligation, all commercial companies must hold an Annual Ordinary General Meeting with the main objective to know and discuss the financial position of the company. Said Assembly shall be held within ninety (90) days (for Societies in Collective Name-Sociedades en Nombre Colectivo, Simple Limited Partnerships-Sociedades en Comandita Simple, and Individual Limited Liability Companies-Empresas Individuales de Responsabilidad Limitada) or one hundred and twenty (120) days (in the case of Limited Shares Partnerships-Sociedades en Comandita por Acciones, Limited Liability Companies-Sociedades de Responsabilidad Limitada, Corporations-Sociedades Anónimas, and Simplified Corporations-Sociedades Anónimas Simplificada), counted from the date of closing of the fiscal year in accordance with the provisions of Articles 31, 39, 69, 110, 190 and 457 of the General Law No. 479-08 of Companies and Individual Limited Liability Companies, as amended (“Companies Law”). The closure dates established by law for companies are: March 31st, June 30th, September 30th, and December 31st.
Likewise Law No. 11-92 that creates the Tax Code of the Dominican Republic, as amended, establishes the formal duties and rights for taxpayers so that they can meet their tax obligations promptly. Companies domiciled in the country, domestic or foreign, are subject to the payment of an Income Tax (Impuesto Sobre la Renta) corresponding to 29% of their annual taxable income. The taxable amount is determined after deducting from the overall gross income those deductions allowed by law, such as taxes, insurance premiums, uncollectable accounts, interests, among others. The deadline to file and pay this tax is of one hundred and twenty (120) days after the closing of the company’s fiscal year.
Failure to comply with these obligations can lead to penalties and fines for the society and its directors, managers and/or directors.
Based on the above, we suggest reviewing corporate and accounting records, in order to hold and update, if necessary, legal and fiscal obligations herein. We consider appropriate to emphasize that the Tax Authority (Dirección General de Impuestos Internos) has the power to inspect the company for the last three (3) fiscal years.
Should you require more information and/or legal assistance for the review, updating and preservation of the commercial and tax obligations of your company, you may contact me at fortiz010@gmail.com.
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