What the hell are taxes?

What are taxes? They are contributions that citizens and companies must pay so that the State can cover common needs and are established by law.

Main taxes in the Dominican Republic: ITBIS: It is the Tax on Transfers of Industrialized Goods and Services. The general rate of this tax is 18%.

The goods are taxed at the general ITBIS rate, 18%, because they have gone through an industrialization process.

Some goods are not taxed by the ITBIS, because they have not gone through an industrialization process, they are in their natural state or they belong to the family basket. There are also services for which the ITBIS is not paid, such as: water, electricity, health and education. Those goods and services are exempt.

Yogurt, butter, coffee, edible animal or vegetable fats, sugar, cocoa and chocolate have a reduced rate of 16%.

Income Tax (ISR): It is the tax that people must pay on their income and companies on their profits.

Taxes on Motor Vehicles: Covers all procedures and transactions that are carried out with motor vehicles, such as: renewing the License Plate or assigning the first license plate, among others.

With the resources collected, public goods are built and maintained, such as schools, parks, hospitals, streets and highways; It also allows the payment of public servants and services such as the emergency response system (9-1-1), aqueducts and public transportation. It is our duty to give good use and take care of everyone's property.