Los 8 Mayores Errores de los Inversionistas.
“Los errores comunes se pueden ir sumando. En última instancia, ellos disminuyen el valor de su cartera de inversión. Mi meta es aumentar la consciencia de los inversionistas sobre las trampas comunes y ayudarlos a proteger sus valiosos recursos económicos.”
¿Es Usted un inversionista auto-dirigido? Si es así, ¿está Usted completamente satisfecho con el actual desempeño de sus inversiones? O, ¿ha Usted batallado para alcanzar consistentemente sus metas de inversión a través del tiempo?
Existe la probabilidad de que Usted sienta que algún nivel de mejoría puede ser logrado. Todos nosotros típicamente buscamos el mismo objetivo general: maximizar nuestros retornos de inversión mientras, al mismo tiempo, nos protegemos del riesgo de pérdidas. Sin embargo, para muchos se está convirtiendo mucho más difícil alcanzar este objetivo, ya que ellos están inundados con más información y se enfrentan a más alternativas de inversión. En última instancia, el panorama se ha vuelto más complejo.
Afortunadamente, muchos principios fundamentales de la inversión han permanecido sin cambios. A partir de más de 30 años en el manejo de dinero de muchas instituciones e individuos prestigiosos, he aprendido algunas lecciones importantes sobre lo que es necesario para lograr el éxito –y sobre lo que puede llevar al fracaso.
Mediante esta guía, mi objetivo es ayudar a los inversionistas a darse cuenta de estos errores comunes –y proveer una sabia visión sobre cómo evitarlos. Al hacer esto, estoy confiado en que la guía puede ayudarle a aumentar sus probabilidades de alcanzar sus metas de inversión.
Kenneth L. Fisher.
Director Ejecutivo (Chief Executive Officer) (CEO) y Director General de Inversión (Chief Investment Officer), Fisher Investments (Inversiones Fisher).
Columnista sobre Estrategia de Cartera de Inversión en la Revista Forbes.
Error No. 1: Subestimar el horizonte de tiempo de tus recursos económicos.
¿Cuánto tiempo Usted piensa que vivirá?
¿Y qué sobre su esposo/a?
La mayoría de la gente son exageradamente demasiado pesimistas al estimar la longitud de sus vidas, un problema que ocurre al planear su futuro financiero.
…Y cómo evitarlo.
Es un hecho simple. Los grandes avances y descubrimientos en la Medicina ocurren tan a menudo, y aún así nosotros frecuentemente ni siquiera oímos hablar acerca de ellos. Así como el progreso ha ocurrido en la efectividad del tratamiento de la enfermedad, la mejoría en la nutrición en general y los mayores estándares de vida, la mayoría de la gente ahora vive por más tiempo del que ellos piensan que vivirán.
Esto significa que hay nuevos y costosos métodos de cuidados de la salud que ahora están disponibles para aumentar la extensión de vida del mismo modo que la población envejece, lo cual aumenta los costos del cuidado de la salud y de mayor vida.
Por estas razones, encontramos que la mayoría de la gente estima en un bajo perfil cuando esto tiene que ver con cuánto tiempo ellos vivirán. Como un resultado de esto, muchos fracasan en implementar planes financieros para acomodar sus mayores extensiones de vida. Hoy muchos corren el riesgo de mermar sus fondos mucho antes que sus vidas hayan terminado.
Es importante tener una estrategia financiera sólida, una estrategia que proveerá para su estabilidad financiera y sus necesidades de ingresos a lo largo de su vida entera. La planificación financiera sólida es igualmente importante para aquéllos cuyas metas consisten en aumentar sus recursos económicos de tal manera que ellos puedan legar una herencia a sus seres queridos y los miembros de su familia que les sobrevivan. En cualquier caso, un horizonte de tiempo de expectativa de vida realista es vitalmente importante.
Error No. 2: Alineando incorrectamente los objetivos de inversión y la estrategia de cartera de inversión.
Alineando su estrategia de cartera de inversión con sus objetivos es un factor crítico para determinar el éxito a largo plazo de la inversión. Esto puede sonar obvio, pero muchos inversionistas realmente emplean estrategias que funcionan en contra de sus objetivos.
…Y cómo evitarlo.
“…objetivos de horizonte a corto plazo están a menudo exageradamente expuestos al riesgo…”
Un error común del inversionista es juzgar inadecuadamente el riesgo. Generalmente, a un mayor horizonte de tiempo de los recursos económicos de un inversionista, hay un riesgo mayor que ellos son capaces de asumir. Sin embargo, muchos inversionistas terminan tomando demasiado poco riesgo. Al enfocar sobre la volatilidad a corto plazo en vez del horizonte a largo plazo de sus recursos económicos, los inversionistas se vuelven miopes e inevitablemente ignoran las variadas probabilidades de lograr sus objetivos. Como un resultado de esto, muchos inversionistas no alcanzan sus metas.
Por ejemplo, algunos inversionistas sobrecargan sus carteras de inversión con bonos de la Tesorería de cupones bajos, debido al temor de que las acciones caerán en un plazo corto. Entonces, ellos a menudo apenas generan un retorno que está por encima de la tasa de inflación. Esto reduce las probabilidades de lograr una meta a largo plazo de crecimiento –especialmente si los retiros de fondos son también anticipados.
Por el contrario, aquellos inversionistas con objetivos de horizonte de corto tiempo están a menudo exageradamente expuestos al riesgo, lo cual crea un peligro de los recursos económicos durante un período de corto plazo de volatilidad. Esto puede poner todo su futuro financiero en peligro.
Error No. 3: Confundir las necesidades de ingreso con las necesidades de flujo de efectivo.
El ingreso y el flujo de efectivo no son la misma cosa, aunque muchos inversionistas piensan que lo son. De hecho, los dos diferentes conceptos y las distinciones entre ellos son extremadamente importantes.
…Y cómo evitarlo.
Expuesto con simpleza, el flujo de efectivo es cuánto dinero Usted necesita para los gastos para vivir y otros usos personales del efectivo. El ingreso, por el otro lado, es la cantidad de dividendos e interés ganados por una cartera de inversión que, en el caso de una cuenta sujeta a impuestos, Usted pagará actualmente los impuestos sobre el ingreso o impuestos sobre la renta. Aquí está la diferencia importante:
La manera en que Usted genere ingreso puede tener un efecto tangible en el crecimiento de sus recursos económicos, así como en los impuestos que Usted paga, y ambos impactan su habilidad para conseguir flujos de efectivo.
Es un error pensar que Usted debería conseguir el nivel de flujo de efectivo que necesita solamente de su ingreso y nunca tocar el capital principal. Este es un prejuicio emocional que para muchos simplemente no pueden vencerlo. En vez de esto, su enfoque debería estar en el retorno total después del pago de los impuestos. Por ejemplo, vender acciones para satisfacer necesidades de ingreso pueden permitirle mantenerse completamente en la inversión y crear dividendos “auto-cultivados” al vender valores (securities) selectos.
Cuando son comparados con algunos dividendos, así como con el interés del ingreso fijo, vender acciones puede ofrecer ventajas fiscales o de impuestos, porque la transacción podría ser gravada con impuestos en las ganancias del capital en vez de la tasa marginal del cliente. Cosechar pérdidas también puede ser ventajoso respecto a los impuestos.
Error No. 4: Dejar de ver factores de riesgo no intencionales.
Muchos inversionistas no se dan cuenta que manejar una cartera de inversión diversificada de recursos económicos puede estar cargada con riesgos ocultos. Muy a menudo, encontramos que las carteras de inversión están expuestas exageradamente a ciertos factores de riesgo que nunca fueron apropiadamente reconocidos. No permita que esto le pase a Usted.
…Y cómo evitarlo.
La concentración no intencional produce exceso de riesgo. Esto le expone a mayores fluctuaciones y a la posibilidad de pérdidas aceleradas. Factores como sector, país, moneda, valuaciones y tamaño juegan todos un papel en una cartera de inversión diversificada apropiadamente. Más aún, algunos valores (securities) son altamente correlacionados por otras razones (como movimientos de la tasa de interés o precios de la materia prima).
Por ejemplo, supongamos que a Usted le pertenece una acción japonesa y una acción inglesa. Estas parecen no tener relación, ¿verdad? Sin embargo, ¿ha considerado la fuente de ganancias para cada compañía? ¿Son ambas sensitivas a las fluctuaciones de tasa de interés? Tal vez el desempeño de cada una está vinculado de una forma similar a los movimientos de la moneda.
¡Una concentración demasiado elevada de cualquiera de estos u otros factores puede exponer sus recursos económicos a riesgos que Usted nunca tuvo la intención de asumir!
Error No. 5: Ignorar los mercados de valores (securities) extranjeros.
Contrario a la creencia doméstica popular, los Estados Unidos no es el único país con condiciones favorables de inversión. De hecho, en términos de capitalización de mercado, los Estados Unidos sólo representa menos de la mitad del valor (value) de todas las acciones globales.
Como un resultado del desarrollo y la expansión económicos globales, una multitud de compañías innovadoras y de oportunidades de inversión están disponibles alrededor del mundo.
…Y cómo evitarlo.
Es un error creer que su cartera de inversión está apropiadamente diversificada simplemente porque Usted ha elegido acciones en diferentes sectores. Eso no es suficiente. El retorno de las acciones está parcialmente relacionado con el desempeño económico general y el clima político del país natal. Una economía doméstica decadente hace difícil que muchas compañías localizadas allí prosperen. Sin darle consideración al país y a la región, Usted puede incurrir en riesgos excesivos asociados con hacer negocios en ese país.
Muchos inversionistas promedio sufren del “prejuicio del país natal”, lo cual significa que ellos tienden a invertir sólo en el país en que ellos viven. Por ejemplo, si Usted fuera a comprar acciones diversificadas a través de todos los sectores localizados dentro de los Estados Unidos, el desempeño podría depender más sobre cómo el país se desempeña que en la calidad de las compañías individuales seleccionadas.
La diversificación es una parte clave al construir una cartera de inversión bien edificada que aumentará sus recursos económicos. Invertir en el extranjero ayuda a fortalecer su cartera de inversión al expandir la frontera eficiente. También crea un mayor conjunto de posibilidades para encontrar inversiones valiosas.
Error No. 6: Olvidar la importancia fundamental de la oferta y la demanda.
Los principios fundamentales de la oferta y la demanda de los valores (securities) son fácilmente desapercibidos u obviados. Los analistas y los expertos citan una lista interminable de teorías acerca de qué mecanismos guían los precios de las acciones. Sin embargo, el hecho simple permanece: la oferta y la demanda de los valores (securities) siempre serán la guía fundamental de los precios de las acciones.
…Y cómo evitarlo.
La teoría económica básica establece que la relativa oferta y demanda de bienes en un mercado abierto determinará sus precios. Por ejemplo, manteniendo la oferta igual, la demanda de equipo para esquiar aumenta alrededor de los meses de invierno, y así el precio de los equipos para esquiar aumenta en ese tiempo. En los meses del año cuando la gente esquía menos, la demanda disminuye y los precios bajan. Las acciones no son diferentes: pensamos que es sentido común que sus precios fluctúen basados en la demanda a corto plazo.
La oferta de valores de renta variable (equities) es relativamente fija a corto plazo porque toma tiempo para las compañías crear nuevas ediciones de acciones; por consiguiente, los cambios en la demanda son la causa primaria del movimiento de precio a corto plazo. Sin embargo, a largo plazo, la oferta tiene casi una habilidad infinita para cambiar. Las Ofertas Públicas Iniciales (Initial Public Offerings) (IPOs), las divisiones de acciones, las re-compras de acciones, las fusiones y las adquisiciones se combinan para hacer la oferta el factor dominante en los precios de acciones a través de períodos de tiempo mayores. Entender la relación entre la oferta y la demanda de valores (securities) es vital para elegir entre invertir o no en acciones.
La habilidad de rastrear, analizar y evaluar exactamente este principio fundamental de la teoría económica es vital, desde nuestro punto de vista, para hacer pronósticos exitosos en los mercados, porque esto le permite eliminar ruido sin importancia.
Error No. 7: Hacer apuestas de inversión solamente basándose en información ampliamente conocida.
¿Cuáles fuentes de información utiliza Usted cuando considera hacer una inversión? Con la posible excepción del “consejo práctico caliente” que Usted obtuvo en la cena para invitados, su información probablemente viene de fuentes que están ampliamente disponibles. Ese es un problema.
…Y cómo evitarlo.
“…Usted debe conocer algo que todos los demás desconocen.”
Si es del periódico matutino, de investigación de su corredor o agente de Bolsa de Valores, de comentario en la radio, televisión o el Internet, u otra fuente cualquiera que está disponible al público, todas ellas esencialmente no tienen utilidad.
¿Por qué? Porque los mercados son descontadotes eficientes de toda la información ampliamente conocida. Esto significa que tan pronto una pieza de información se hace disponible con mucha amplitud al público, ésta se refleja en los precios de las acciones de las compañías. Pese a este hecho, muchos inversionistas todavía cometen el error de hacer intercambios comerciales basados en información ampliamente conocida.
Para generar consistentemente retornos en exceso, creemos que Usted debe conocer algo que todos los demás no conocen o interpretar la información ampliamente conocida de un modo diferente y correcto al de la multitud. En otras palabras, Usted debe conocer algo que no está reflejado ya en los precios de las acciones de las compañías. La habilidad para generar este conocimiento requiere de experiencia, investigación y disciplina.
Error No. 8: Experimentar una confianza exagerada en sus habilidades de inversionista.
Al invertir recursos económicos personales, es natural para los inversionistas experimentar mucha emoción mientras ellos observan las subidas y bajadas de los mercados. Después de todo, sus futuros financieros están en juego.
Esta emoción típicamente trae en juego un número grande de prejuicios cognitivos, obnubilando el juicio de los inversionistas y obstaculizando su habilidad de hacer decisiones racionales y objetivas.
…Y cómo evitarlo.
Reconozcámoslo: el cerebro humano no está configurado para invertir. Nuestros antecesores de la Edad de Piedra evolucionaron y sobrevivieron enfocándose en lo que fuera que los ayudara a cazar y colectar alimento. Sus prejuicios le dieron forma a sus creencias, creando y reforzando su entendimiento del mundo.
El hecho es que, como nuestros antecesores, nosotros vemos el mundo hoy a través de una pantalla de prejuicios. Por ejemplo, la mayoría de los inversionistas se enfocarán en sus éxitos y tratarán de olvidar los errores que han cometido, confirmando consistentemente sus puntos de vistas personales en vez de mantener la objetividad.
Una carencia particular de los inversionistas es su tendencia innata en tener una confianza exagerada. Naturalmente nosotros levantamos barreras que nos permiten olvidar los errores que hemos cometido en el pasado. Al mismo tiempo, tendemos a enfocarnos en las inversiones exitosas que hemos realizado –lo cual nos hace tener una confianza exagerada. Esto nos guía a tomar riesgos excesivos en las carteras de inversión.
Ninguno de nosotros somos inmunes a estos prejuicios. Por eso es que resulta vital crear un ambiente de inversión que esté desprendido de la emoción y que se base en datos y análisis imparciales para hacer las decisiones correctas para su futuro financiero.
¿Ha cometido algunos de estos errores?
Es difícil de evitar todas las trampas de la inversión –aún para los más inteligentes de los inversionistas. Esa es la razón por la que muchos inversionistas simplemente no tienen tiempo para procesar la vasta cantidad de información disponible hoy y luego aplicarla a sus necesidades individuales y complejas de inversión.
Por más de dos décadas, Fisher Investments (Inversiones Fisher) ha estado ayudando a individuos de alto valor neto lograr sus metas de inversión. A través de los mercados en alza y en baja nosotros aplicamos un enfoque dinámico e individualizado en la gerencia de la cartera de inversión. Nuestro récord de historial a largo plazo habla por sí mismo. Además, nuestros clientes valoran nuestro excepcionalmente alto nivel de servicios, personalización y estructura de tarifa transparente.
Le invitamos a descubrir más acerca de lo que hace único a Fisher Investments. Aún si no está considerando actualmente en hacer nada diferente con sus inversiones, Usted debería conocer más acerca de nuestros servicios como una alternativa potencial. Simplemente llámenos gratuitamente, 1-800-568-5082, para hablar con un representante de Fisher Investments.
Kenneth L. Fisher ha escrito cuatro libros sobre Finanzas y numerosos artículos en revistas especializadas en los negocios y de temas académicos. Él es mayormente conocido por su columna en la Revista Forbes intitulada “Portfolio Strategy” (“Estrategia de Cartera de Inversión”), la cual ha estado escribiendo por más de 22 años.
Notas Legales: Fisher Investments es el nombre de negocios de Fisher Assets Management, LLC.
Las inversiones en valores (securities) implican el riesgo de pérdida.
El desempeño pasado no es garantía de retornos futuros.
Las inversiones en valores (securities) extranjeros pueden implicar riesgos adicionales tales como las pérdidas relacionadas con otras monedas y los mercados de valores (securities).
Anuncio Publicitario:
Los expertos financieros están aclamando el libro mejor vendido del diario New York Times del columnista Ken Fisher de la Revista Forbes, intitulado “The Only Three Questions That Count” (“Las Únicas Tres Preguntas Que Valen La Pena”), con un preámbulo del legendario Jim Cramer.
“Creo que leer este libro puede ser la mejor cosa que Usted pudiera hacer este año para hacerse un mejor inversionista.”
-James J. Cramer.
Columnista de TheStreet.com, columnista de New York Magazine, anfitrión del programa de TV Mad Money de CNBC, anfitrion del programa de radio Real Money de CBS.
“El maestro gerente del dinero Ken Fisher ha estado iluminando con ganancias a nuestros lectores con sus columnas por más de 20 años. Los inversionistas encontrarán que este libro brillante es una experiencia que abre los ojos y produce ganancias en el capital.”
-Steve Forbes.
Director Ejecutivo (CEO) y Editor Jefe de la Revista Forbes.
¡Ahora disponible en el Internet y en las librerías de todas partes! ¡Consigue tu ejemplar hoy!
De acuerdo a Jim Cramer, “este pudiera ser la clase de libro que cambia por entero la faz de la inversión de aquí en adelante…”
Portada del libro: Autores: Ken Fisher con Jennifer Chou y Lara Hoffmans.
Sub-título del libro: “Invirtiendo al conocer lo que otros no conocen.”
Nota Legal:
El libro no es sobre ninguno de los servicios de consejos provistos por Fisher Investments o retornos de desempeño por clientes de Fisher Investments. Fisher Investments maneja las cuentas de sus clientes usando una variedad de técnicas y estrategias de inversión que no son necesariamente discutidas en el libro.
Traducido por Orlando Alcántara
Thursday, August 30, 2007
INVESTMENT GUIDE
Source: Instituto Español de Comercio Exterior (ICEX) (Spanish Foreign Commerce Institute).
Web page:
http://www.icex.es/FicherosEstaticos/auto/0307/GUIA%20ORGANISMOS%20APOYO%20INVERSION%20-%20REP%20DOMINICANA_27224_.pdf
ICEX: INVESTMENT GUIDE OF SUPPORT ORGANISMS: Dominican Republic.
DOMINICAN REPUBLIC.
Note from the Adviser.
The sector with the highest Spanish implementation is tourism, where the investments continue to be implemented both from the already established groups as well as from investors. It is estimated that more than half of the approximately 60,000 hotel rooms in the country belong to Spanish companies. There are also investments in energy, banking, insurance, service concessions, industry, and other services. It is observed, in addition, that there is an increasing Spanish presence in the real estate sector in Santo Domingo and in the tourism zones in the East of the country, and in non-hotel real estate promotions.
The most frequent problems of the Spanish investors happen with the acquisition of lands. Due to shortcomings in the formalities of the Registry of property, the cases of the appearance of alleged new owners of already acquired lands are frequent. There are also cases where lots had been occupied illegally.
These and other problems are aggravated sometimes due to the functioning of the system of Justice administration. Without dealing with possible cases of corruption in the courtrooms, aired often in the mass media, the system allows dilatory tactics in a way that the investor’s rights of property cannot be exercised, giving a disproportionate negotiating power to the opposing party.
It is advised, therefore, to contact the Commercial Office and get advice from a specialized law firm with good reputation.
Luis Ruiz Arberola.
Economic and Commercial Adviser.
1.- INVESTMENT SUPPORT ORGANISMS.
The investment promotion activities in the country are done by Centro de Exportación e Inversión de la República Dominicana (CEI-RD) (Exports and Investment Center for the Dominican Republic). Within this organism, there is the Departamento de Normas e Incentivos (Norms and Incentives Department), whose main objectives are the following up of the existing normative in the matter of investment and exports, as well as to offer the information and consultation services related to existing norms and incentives in both sectors.
CEI-RD has regional offices that give exporters and investors all of the services that the institution has to offer, serving theses support branches in the promotion of the exporting offering of the country and attracting local and foreign investment.
Among its functions, CEI-RD takes part in an active way of the execution of financing programs and technical assistance for the promotion of investors and exporters, promotes the approval of new investments through the inter-institutional channels of the country, and recommends to the Executive Power the adoption of measures in order to improve the investment climate, cooperating in the international negotiations of multilateral, regional and bilateral agreements that have an influence in the exports and investment sectors.
On the other hand, it manages the registry of investments and exports of the Dominican Republic, it serves as a center of compilation and distribution of information about exports, investments and other communication materials, and it is a main point of contact with probable investors, and lastly, it facilitates the technical and specialized consultancy for producers, exporters or investors in the development of their investment initiatives and/or access to both national and international markets.
ORGANISM:
CENTRO DE EXPORTACION E INVERSION DE LA REPÚBLICA DOMINICANA (CEI-RD).
CONTACT INFORMATION:
Address: Av. 27 de Febrero esq. Gregorio Luperón, in front of the Plaza de la Bandera (Flag’s Plaza),
Santo Domingo, Dominican Republic.
Phone: (809) 530-5505.
Fax: (809) 530-8208.
E-mail: webmaster@cei-rd.gov.do
Web page: http://www.cei-rd.gov.do
2.- INVESTMENT INCENTIVES.
The judicial framework of foreign investment in the Dominican Republic is comprised of Law 16-95 sobre Inversión Extranjera (on Foreign Investment) and its implementing regulation approved through the Presidential Decree 380-96, modified at the same time by the Presidential Decree 163-97.
The principles that apply to foreign investment in the Dominican Republic are the following ones:
-Equity in the treatment of the foreign investor in relation to the national investor, according to his/her rights as well as his/her duties on the matter of investment.
-Liberalized regime without restrictions about the destiny of capitals and dividends, which can be taken out of the country in currency that can be exchanged freely.
-The investors can have the direct representation of his/her manufactured products abroad or in the country.
-Simplified system of implementation, which means saving of time and reduction of the discretionality in the actions of the competent authorities. These formalities are limited to the registry with the purpose of statistics, which has to be done at CEI-RD.
In Spain and the Dominican Republic there is the Acuerdo de Promoción y Protección Recíproca de Inversiones (Agreement of Mutual Promotion and Protection of Investments), in effect since October 7th, 1996, in which it is proposed to create the favorable conditions for investments made by investors of each one of the Contracting Parties in the territory of the other party.
There are special and tax laws that establish specific incentives destined to foreign investment, in favor of determined types of investments. The most relevant ones are specified as follows:
2.1.- INCENTIVES LAWS FOR FOREIGN INVESTMENT.
Among the most important laws, we can enumerate the following ones:
-The companies that are suppliers of goods and services for exports established as Free Duty Zones (Law 8-90 and Implementation Regulation No. 366-97) are benefited by the special regime of customs controls and tax incentives of up to 100%.
-The companies located in Special Zone of Frontier Development (created by Law 28-01) can be benefited with the exemption of all of the taxes during 20 years.
The entity that it’s in charge of giving the Certificado de Empresa Fronteriza (Certificate of Frontier Enterprise) is Consejo de Coordinación de la Zona Especial de Desarrollo Fronterizo (Coordination Council of the Special Zone of Frontier Development) (more information at Dirección General de Desarrollo Fronterizo (General Directorate of Frontier Development), http://www.dgdf.gov.do ). This organism receives, evaluates the development projects, and emits the certificate of Frontier Enterprise, establishing a set of incentives for the national and foreign private investment in order to benefit the installation of new companies.
-Law 150-97 establishes a zero rate for the raw materials, equipment and machinery for the production, applicable exclusively to the companies that are established in the country for agricultural projects.
-The Law 183-02 sobre Código Monetario y Financiero (on Monetary and Financial Code) opens up the sector of financial services to the foreign investors, and it was promulgated with the objective of establishing a regulatory regime of the national monetary and financial system in order to procure an efficacious performance of the system in an environment of competitiveness and free market.
2.2.- PROGRAM OF RESIDENCY FOR INVESTORS.
The Programa de Permiso de Residencia (Residency Permit Program) through investment, created through the Decree No. 950-01, has the objective of benefiting the foreigners that make a significant investment in the Dominican Republic, giving them a special residency, with the same rights that Law No. 95 on Immigration gives to foreigners living in the country.
In order to get more information about these and other incentives programs, consult the following websites:
http://www.cei-rd.gov.do
http://www.bancentral.gov.do
http://www.presidencia.gov.do
FREDDY MIRANDA
Translated by ORLANDO ALCANTARA
Web page:
http://www.icex.es/FicherosEstaticos/auto/0307/GUIA%20ORGANISMOS%20APOYO%20INVERSION%20-%20REP%20DOMINICANA_27224_.pdf
ICEX: INVESTMENT GUIDE OF SUPPORT ORGANISMS: Dominican Republic.
DOMINICAN REPUBLIC.
Note from the Adviser.
The sector with the highest Spanish implementation is tourism, where the investments continue to be implemented both from the already established groups as well as from investors. It is estimated that more than half of the approximately 60,000 hotel rooms in the country belong to Spanish companies. There are also investments in energy, banking, insurance, service concessions, industry, and other services. It is observed, in addition, that there is an increasing Spanish presence in the real estate sector in Santo Domingo and in the tourism zones in the East of the country, and in non-hotel real estate promotions.
The most frequent problems of the Spanish investors happen with the acquisition of lands. Due to shortcomings in the formalities of the Registry of property, the cases of the appearance of alleged new owners of already acquired lands are frequent. There are also cases where lots had been occupied illegally.
These and other problems are aggravated sometimes due to the functioning of the system of Justice administration. Without dealing with possible cases of corruption in the courtrooms, aired often in the mass media, the system allows dilatory tactics in a way that the investor’s rights of property cannot be exercised, giving a disproportionate negotiating power to the opposing party.
It is advised, therefore, to contact the Commercial Office and get advice from a specialized law firm with good reputation.
Luis Ruiz Arberola.
Economic and Commercial Adviser.
1.- INVESTMENT SUPPORT ORGANISMS.
The investment promotion activities in the country are done by Centro de Exportación e Inversión de la República Dominicana (CEI-RD) (Exports and Investment Center for the Dominican Republic). Within this organism, there is the Departamento de Normas e Incentivos (Norms and Incentives Department), whose main objectives are the following up of the existing normative in the matter of investment and exports, as well as to offer the information and consultation services related to existing norms and incentives in both sectors.
CEI-RD has regional offices that give exporters and investors all of the services that the institution has to offer, serving theses support branches in the promotion of the exporting offering of the country and attracting local and foreign investment.
Among its functions, CEI-RD takes part in an active way of the execution of financing programs and technical assistance for the promotion of investors and exporters, promotes the approval of new investments through the inter-institutional channels of the country, and recommends to the Executive Power the adoption of measures in order to improve the investment climate, cooperating in the international negotiations of multilateral, regional and bilateral agreements that have an influence in the exports and investment sectors.
On the other hand, it manages the registry of investments and exports of the Dominican Republic, it serves as a center of compilation and distribution of information about exports, investments and other communication materials, and it is a main point of contact with probable investors, and lastly, it facilitates the technical and specialized consultancy for producers, exporters or investors in the development of their investment initiatives and/or access to both national and international markets.
ORGANISM:
CENTRO DE EXPORTACION E INVERSION DE LA REPÚBLICA DOMINICANA (CEI-RD).
CONTACT INFORMATION:
Address: Av. 27 de Febrero esq. Gregorio Luperón, in front of the Plaza de la Bandera (Flag’s Plaza),
Santo Domingo, Dominican Republic.
Phone: (809) 530-5505.
Fax: (809) 530-8208.
E-mail: webmaster@cei-rd.gov.do
Web page: http://www.cei-rd.gov.do
2.- INVESTMENT INCENTIVES.
The judicial framework of foreign investment in the Dominican Republic is comprised of Law 16-95 sobre Inversión Extranjera (on Foreign Investment) and its implementing regulation approved through the Presidential Decree 380-96, modified at the same time by the Presidential Decree 163-97.
The principles that apply to foreign investment in the Dominican Republic are the following ones:
-Equity in the treatment of the foreign investor in relation to the national investor, according to his/her rights as well as his/her duties on the matter of investment.
-Liberalized regime without restrictions about the destiny of capitals and dividends, which can be taken out of the country in currency that can be exchanged freely.
-The investors can have the direct representation of his/her manufactured products abroad or in the country.
-Simplified system of implementation, which means saving of time and reduction of the discretionality in the actions of the competent authorities. These formalities are limited to the registry with the purpose of statistics, which has to be done at CEI-RD.
In Spain and the Dominican Republic there is the Acuerdo de Promoción y Protección Recíproca de Inversiones (Agreement of Mutual Promotion and Protection of Investments), in effect since October 7th, 1996, in which it is proposed to create the favorable conditions for investments made by investors of each one of the Contracting Parties in the territory of the other party.
There are special and tax laws that establish specific incentives destined to foreign investment, in favor of determined types of investments. The most relevant ones are specified as follows:
2.1.- INCENTIVES LAWS FOR FOREIGN INVESTMENT.
Among the most important laws, we can enumerate the following ones:
-The companies that are suppliers of goods and services for exports established as Free Duty Zones (Law 8-90 and Implementation Regulation No. 366-97) are benefited by the special regime of customs controls and tax incentives of up to 100%.
-The companies located in Special Zone of Frontier Development (created by Law 28-01) can be benefited with the exemption of all of the taxes during 20 years.
The entity that it’s in charge of giving the Certificado de Empresa Fronteriza (Certificate of Frontier Enterprise) is Consejo de Coordinación de la Zona Especial de Desarrollo Fronterizo (Coordination Council of the Special Zone of Frontier Development) (more information at Dirección General de Desarrollo Fronterizo (General Directorate of Frontier Development), http://www.dgdf.gov.do ). This organism receives, evaluates the development projects, and emits the certificate of Frontier Enterprise, establishing a set of incentives for the national and foreign private investment in order to benefit the installation of new companies.
-Law 150-97 establishes a zero rate for the raw materials, equipment and machinery for the production, applicable exclusively to the companies that are established in the country for agricultural projects.
-The Law 183-02 sobre Código Monetario y Financiero (on Monetary and Financial Code) opens up the sector of financial services to the foreign investors, and it was promulgated with the objective of establishing a regulatory regime of the national monetary and financial system in order to procure an efficacious performance of the system in an environment of competitiveness and free market.
2.2.- PROGRAM OF RESIDENCY FOR INVESTORS.
The Programa de Permiso de Residencia (Residency Permit Program) through investment, created through the Decree No. 950-01, has the objective of benefiting the foreigners that make a significant investment in the Dominican Republic, giving them a special residency, with the same rights that Law No. 95 on Immigration gives to foreigners living in the country.
In order to get more information about these and other incentives programs, consult the following websites:
http://www.cei-rd.gov.do
http://www.bancentral.gov.do
http://www.presidencia.gov.do
FREDDY MIRANDA
Translated by ORLANDO ALCANTARA
Tuesday, August 21, 2007
FAQ REAL ESTATE TAXES
Source: Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) (Internal Revenue Service –IRS- in the United States).
Webpage:
http://www.dgii.gov.do/publicaciones/pregfrecuentes.html
Title: Frequently Asked Questions.
Tax on the Assets (Impuesto Sobre los Activos).
What is the Tax on the Assets?
It is an annually applicable tax on the goods in possession of the taxpayers, who could be Legal Persons (with operations or not) or Physical Persons with businesses of sole proprietorship and organized accounting.
What is burdened by this tax?
The total value of the assets, including in an explicit way the real estate, that appear in the taxable balance of the taxpayer, that is not fixed by inflation and after the deduction of depreciation, amortization and reserves implemented for uncollectible accounts.
Which Assets are included in the tax basis?
Cash in Cash Desk and Bank.
Accounts Receivable - Clients (minus authorized reserve).
Accounts Receivable - Administration Employees and Employees.
Accounts Receivable - Shareholders.
Inventories.
Merchandise in Transit.
Paid in advance expenses.
Buildings (net and not fixed by inflation).
Improvements in Renting (net).
Lands.
Automobiles and Equipment (net).
Other Net Fixed Assets.
Fixed Credit Investments.
Intangible Assets.
What Assets do not comprise the tax basis?
Investments in shares in other companies.
Lands located in the rural zone.
Real estate that by their nature are used for agricultural operations.
Advance taxes or advance payments.
Is there some exemption for the payment of the Tax on the Assets?
The Legal Persons who are free of the payment of this tax are those ones who, according to the implementation of the Código Tributario (Taxes Code), Special Laws or Contracts approved by the National Congress, are totally free of the payment of the Impuesto Sobre la Renta (ISR) (Income Tax in the United States).
Who can ask for a temporary exclusion?
Those companies whose acquired net fixed assets are higher than 50% of the total assets.
Those companies whose investments, that by the nature of their activity have a cycle of installation, production and beginning of their operations greater than one (1) year, so that determined assets are excluded from the tax basis of this tax.
Those taxpayers with losses by causes of greater or extraordinary force will be able to request for this year the temporary exemption of the Tax on the Assets.
What is the Rate to be paid?
The tax rate will be of one percent (1%) annually, calculated on the total amount of the taxable assets.
How is the payment of this tax determined?
It is determined with data of the General Balance Sheet that is enclosed with the Declaración Jurada (Sworn Financial Statement) of the ISR (Income Tax) that the taxpayer presents.
A form is filled up (back of IR-2) to make the calculation.
When is this tax paid?
The payment of this tax, if it applies, will take place in two quotas, beginning the first in the same date limit fixed for the payment of the ISR (Income Tax), and the second to the counted term of six (6) months from the expiration of the first quota.
In what case does the Tax on the Assets have to be paid?
In case that the amount of the Tax on the Assets is higher than the amount of the ISR (Income Tax), the taxpayer will pay the difference in favor of the tax collecting agency in the two anticipated quotas, divided in equal parts.
On the contrary, that is to say, if the ISR (Income Tax) were equal or higher, the obligation of the payment of the Tax on the Assets.will consider itself to be extinguished.
Can the taxpayer compensate Balances in Favor by effect of the excess in the payment of advance payments of the ISR (Income Tax)?
The taxpayer will be able to ask to the DGII (IRS in the United States) the compensation of this balance with the Tax on the Assets generated according to the previous point.
What implementation will happen with the payments of the Impuesto a la Propiedad Inmobiliaria (IPI) (Tax to the Real Estate Property) in relation to this tax?
For the taxpayers with the closing date of December 31st, the amount to be paid by concept of the IPI during year 2006 will take into account a credit against the Tax on the Assets corresponding to the tax period 2006, whose statements must be presented in the year 2007.
What does it happen if it is paid after the established date?
If it is paid after the deadline date, a surcharge of 10% for lateness in payment will be implemented to the value of the tax to be paid, by the first month or fraction of month; 4% of a progressive and indefinite surcharge by every month or fraction of subsequent month; and 2,58% cumulative compensatory interest by every month or fraction of month, on the amount to be paid of the late quota.
From January 1st, 2007, compensatory interest will increased to a 1,73%
Withholdings.
Is the payment of the Retenciones de Asalariados (Withholdings of Wage-Earners) due to be made on the same day that the payment of the Social Security?
No, the payments of Withholdings of Wage-Earners will continue to be carried out no later than the 10th day of every month.
To name of whom the checks for the payment of the withheld ISR (Income Tax) of the wage-earners must be emitted?
The checks for payments of the liquidation of Withholdings of Wage-Earners must be emitted to the name of: Colector de Impuestos Internos (Collector of Internal Taxes).
Must the checks for the payment of Withholdings of the Wage-Earners be certified although they are paid in the same banks where the taxpayers have accounts?
No, in case that the taxpayer who is going to make the payment has an account in the same bank he/she does not have to certify the check.
Which is the procedure to modify the wages of the employees through the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment) in order to liquidate the ISR (Income Tax)?
The taxpayers must access the SUIR system of the Tesorería de la Seguridad Social (TSS) (Treasury of the Social Security), in the webpage http://www.tss.gov.do, with his class and choose the link of Novedades (New Features) where they will be able to make the modifications that are required.
In which article of Law 11-92 is it mentioned that the employees who work in different companies must choose an employer as Agent of Withholding?
Article 73 of the Regulation of the ISR (Income Tax) states that the wage-earners that receive income of other employers must choose as his/her Agent of Withholding the company where he/she earns a greater wage, as his/her only Agent of Withholding, with prior authorization of the DGII.
Is it possible to update Novedades (New Features) of the payroll in the SUIR system via telephone through the DGII?
Yes, through the Centro de Atención Telefónica (Telephone Assistance Center) of the DGII (809-689-3444 and 1-809-200-6060 from the interior of the country without charges –toll free-) the taxpayers will be able to update Novedades (New Features).
Which is the procedure for the taxpayers to make the payment of the ISR (Income Tax) according to the system of the TSS?
The taxpayers must go to the affiliated commercial banks (Bancos Popular, Bancos León, Bancos BHD, and Bancos de Reservas –Reserves Banks-) with the payment voucher, emitted through the webpage of the Tesorería de la Seguridad Social (Treasury of the Social Security) (www.dgii.gov.do).
How will the taxpayers receive the liquidation and payment voucher of the Withholdings of Wage-Earners?
The taxpayers will receive the voucher for the payment of their liquidation through the TSS; it can be printed from the webpage of the TSS or in the affiliated banks.
What document must present the taxpayers in the banks for the payment of the Withholdings of the Wage-Earners?
The taxpayers can pay their Withholdings presenting the liquidation of the ISR (Income Tax) payment, with the reference number or the voucher of payment that is generated through the SUIR system of the TSS.
What is the procedure for implementing the ISR (Income Tax) to the employment bonuses that receive the wage-earners with the new method of sending them through SUIR?
The representatives must access the SUIR system through the webpage of the TSS (www.tss.gov.do), choose the option Novedades, Cambio de Salario y Otros (New Features, Change of Wages and Others), insert the number of the Cédula de Identidad y Electoral (Electoral and Identification Card) of the employee who will receive the employment bonus in the company, click on Buscar (Search), confirm the data of the employee, insert the value of the employment bonus in the corresponding space, then click on the options of Insertar (Fill Up) and Aplicar (Implement) Novedades (New Features).
Through which disposition can the taxpayers obtain more information about the agreement between the TSS and the DGII?
The taxpayers can obtain all the information about the agreement between the Tesorería de la Seguridad Social (Treasury of the Social Security) and the Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) through Norm 10-04.
Note: Norm 10-04 is published in the section of General Norms of our webpage (http://www.dgii.gov.do/legislacion/normas2004.html).
What is the procedure for taxpayers to send the payroll’s data through the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment) that the TSS operates?
The taxpayers must be enrolled in the Tesorería de la Seguridad Social (Treasury of the Social Security) and to update the payroll’s data of their companies.
Can the taxpayers register in the TSS through the DGII?
At the moment, only the Tesorería de la Seguridad Social (Treasury of the Social Security) is registering in the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment).
How must be placed the wages in the space Salario Cotizable (Quotable Wages) for the ISR (Income Tax) of the SUIR system with or without the Social Security implemented?
In the space Salario Cotizable (Quotable Wages) of the ISR (Income Tax) the wages that the employee earns without having deducted the Social Security to him/her must be placed.
What is the procedure for sending Otras Retenciones IR-17 (Other Withholdings IR-17) through SUIR?
The representatives must access SUIR through the webpage of the TSS, in option DGII, choose IR-17, fill up the form, confirm the data that have been inserted, and then click in the option Declarar (To Make the Statement).
Through what link can be accessed the form IR-17 of Otras Retenciones (Other Withholdings) in the SUIR Plus?
The taxpayers must access the webpage of the TSS through the link http://www.tss2.gov.do/Login.aspx?log=r, insert the RNC (National Registry of Taxpayers number), ID number and password, and log in the system, and then choose DGII and click on Declaración IR-17 (Statement IR-17) (Form IR-17).
What is the procedure to follow in order to make a correction of form IR-17 through SUIR Plus?
In order to modify the data filled up in form IR-17, the interested user must access SUIR Plus through the webpage of the TSS before the 10th day of every month, and in option DGII, choose IR-17, fill up the form, confirm again the data that have been filled up, and then click on the option “Actualizar Declaración” (“Update Statement”).
What withholding must the companies implement as an item of income when the owners are physical persons?
The withholding that the companies must implement to the physical person as an item of income is 10% according to Law 288-04.
Impuesto a la Propiedad Inmobiliaria (IPI) (Tax to the Real Estate Property) / Impuesto sobre las Viviendas Suntuarias y los Solares Urbanos no Edificados (IVSS) (Tax on the Sumptuary Houses and the Non-Built Urban Lots).
What are the Taxes that are due to be paid for real estate transfers?
The Taxes that are due to be paid for real estate transfers are the following ones:
3% of the value of the real estate property.
Law 80-99 (Impuestos sobre Documentos) (Taxes on Documents) on the value of the real estate property.
What are the requirements for declaring real estate property in the IPI and where must they be presented?
The interested party will have to go to the Administration or a Local Agency that corresponds to him/her with the following documents:
Communication informing the exact address of the real estate property and the owner;
Copy of the Title of Property, Letter of Certainty from the Registrar of Titles, Sentence of the Tribunal Superior de Tierras (Superior Court of Lands) or Act of Sale of the real estate property;
Copy of the Mensura Catastral (Cadastral Measure) (if it exists);.
Copy of the draft of the Improvement built in the lot; and
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card) in the case of Physical Persons; Tarjeta Tributaria de Identificación (Taxes Identification Card), in the case of Companies; and Passport in the case of Foreigners or Dominicans living abroad who do not have Cédula de Identidad y Electoral (Electoral and Identification Card).
What is the rate to be paid for the IPI?
One percent (1%) on the excess of the amount of five million pesos, which are exempted.
Will the commercial lots and premises be taxed with a 1% of the excess of the amount of RD$5.000.000,00 with the Reforma Fiscal (Tax Reform) (Law 288-04)?
Yes, according to Law 288-04 the non-built lots and those ones where in their lands there is a building are burdened with this tax; the real estate property destined for housing and commercial premises, when they exceed the amount of RD$5,000,000.00 (five million pesos). The commercial premises are excluded, because they are taxed by the Impuesto Sobre Activos (Tax on the Assets). (Translator’s note: There is a contradiction here with the information given by the DGII regarding the commercial premises. It is pertinent that the reader consult by himself/herself this information directly with the DGII.)
What is taxed by the IPI/IVSS?
Houses and commercial establishments in urban or rural zones, and non-built urban lots, which are the property of Physical Persons or Companies of Sole Proprietorship without organized accounting.
What is exempted from the IPI/IVSS?
Houses whose value is lower than the amount of five million pesos (RD$5,000,000.00).
Houses whose owners are sixty and five (65) years old, in the case that this house has not been transferred to another owner in the last fifteen (15) years, and the owner has only this house as his/her real estate property.
The buildings and lots in the name of the Dominican State, Charitable Institutions, Religious Organizations and Diplomatic Delegations.
Who must pay the IPI/IVSS?
The owners of houses and lots whose value exceeds the amount of five million pesos (RD$5,000,000.00).
When is it due to be presented and paid for?
It must be presented annually in the Declaración Jurada (Sworn Financial Statement) within the first sixty (60) days of the year, and it must be paid in two (2) semester quotas, the first on March 11th, and the second on September 11th.
Motor Vehicles.
What are the requirements to make sales transfer of motor vehicles and how much must I pay?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) the following documents:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of both the seller and the buyer of the vehicle.
Original Matrícula (Motor Vehicle Certificate), properly endorsed.
Notarized and legalized Act of Sale.
Certification of Plan Piloto (Translator’s note: Plan Piloto is a Police Department office in Santo Domingo).
Payment of the Sales Transfer Tax of 2% of the value of the vehicle (according to the rates table).
Receipt of payment of RD $100,00 for printing of the Matrícula (Motor Vehicle Certificate).
Receipt of payment for service of RD $300.00.
Receipt of payment required by Law 80-99 out of the value of the vehicle (according to rates table).
What are the requirements to request license plates duplicates and what is the rate to be paid?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) a communication requesting the elaboration of a new License Plate, annexing:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of the vehicle’s owner.
Certification of Complaint to the Policía Nacional (National Police).
Publication of loss of License Plate in a newspaper of national circulation, certified by 3 consecutive days.
Collection of services for RD$300.00.
Original Matrícula (Motor Vehicle Certificate).
Receipt of payment (License Plate emission) of RD$2,500.00 for automobiles and RD$200.00 for motorcycles.
Receipt of payment of the RP-01 (printing of Matrícula –Motor Vechicle Certificate-) for RD$100.00.
What are the requirements for requesting duplicates of Matrículas (Motor Vehicle Certificates) and what is the rate to be paid?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) the following documents:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of the vehicle’s owner.
Copy of the Tarjeta de Identificación Tributaria (Taxes Identification Card) in the case of Companies.
Publication of loss of Matrícula (Motor Vehicle Certificate) in a newspaper of national circulation (certified by the newspaper).
Certification of Complaint to the Policía Nacional (National Police).
Receipt of payment for RP-01 (printing of Matrícula –Motor Vechicle Certificate-) of RD$100.00.
Collection of services for RD$300.00.
The duplicate must be requested by the vehicle’s owner, or an authorized representative by means of a legalized power.
Legal Successions and Donations.
What are the requirements for presenting Declaraciones Sucesorales (Legal Successions Statements)?
The interested party will have to go to Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) with the following documents:
Death Certificate (indispensable).
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card) of the deceased.
Birth Certificate of the inheritors or heirs (indispensable).
Marriage Certificate (if it applies).
Documents related to the funeral expenses and the pending debts to be paid.
Testament or Will (if it exists).
Financial Certificate and Bank Account Books.
Titles of Property.
Declaración Jurada (Sworn Financial Statement) (form SD-1 and Annexes).
What is the Tax that is due to be paid for Donations?
The Tax to be paid for Donations according to Law 2569 (modified by Laws 288-04 and 557-05) is 25% of the value of the donation.
Are the Donations received by the Not-For-Profit Organizations exempted from the payment of the ISR (Income Tax)?
The Donations obtained by the Not-For-Profit Organizations are exempted of the payment of ISR (Income Tax) whenever such income and the social patrimony are destined to the aims of their creation and in no case they are distributed directly or indirectly among the associates; according to what it is stated on Article 299 of Law 11-92. However when these Organizations generate income originating from activities of a different nature from the intentions for which they were created, these incomes will be subject to this tax.
What percentage can be deducted by the companies out of the Donations that they make?
The companies can deduct themselves up to 5% of the taxable net income of the exercise, after carrying out the compensation of loss originating in previous exercises, when it corresponds when they make donations to Not-For-Profit Organizations properly registered, according to Articles 287 of Law 11-92 and 31 of the Reglamento (Regulation).
What are the requirements for the companies to make donations to Non-Governmental Organizations (NGOs)?
The companies that wish to make donations will have to comply with the following norms:
The donations can be made in money or species, tangible and intangible goods, real estate property and in quantifiable services.
The value of the donations made in non-real-estate property, real estate property or other species, which constitute capital assets, registered in joint accounts of Categories 2 or 3, will have to agree with the value in books whereupon these goods are entered by the taxpayer when making the donations. The donations made in stocks or shares, bonds, certificates and similar ones, will be computed according to their value in book, updated with the premiums, discounts, dividends or interests receivable.
The donor will have to credit, with the respective receipt or document given by the beneficiary organization, the amount and destiny of the donation that has been made.
In order for a donation to be deducted to a donor, the beneficiary organizations will have to be enrolled previously in a special registry that will be kept by the Administration. This registration will have to be renewed every three years, previous verification of the fact that the organization is fulfilling the aims of its creation and the formal duties that correspond to it as stated in the Código Tibutario (Taxes Code).
Not later than March 15th of every year, the referred organizations will have to inform to the Administration of the donations received in the previous year, including the statement of the donors, the donated amounts and goods.
In the case of donations in money, the deduction will only be able to be computed when the respective amount indeed is given to the organization receiving the donations, if the donation is made in cash; or once the checks, letras de cambio (letters of transfer) or other similar documents of payment are received by the beneficiary organization, if the donation takes place by means of titles, values or document of credit.
The donations will have to fulfil, in addition, the effective legal dispositions for the validity of the donations.
What is burdened by this tax?
All transfers of non-real-estate property or real estate property caused by death or donation.
Who must pay?
The testament/will inheritors or heirs, successors and beneficiaries.
Donees.
Who are exempted?
The amount of the transfer is lower than five hundred pesos (RD$500.00).
The homestead instituted by law.
Life insurances of the deceased.
The goods bequeathed by testament to public and charitable institutions, charity or public utility institutions recognized by the State.
When is it due to be presented and to be paid?
Within thirty (30) days after the death, it is required to present documentation, for liquidation of the legal file.
What form is it required to be presented?
The required form is Form SD-01 and Annexes in original format.
Translator’s Disclaimer: This document has been translated for general information purposes. For official information, please, contact the DGII or a qualified lawer.
Webpage:
http://www.dgii.gov.do/publicaciones/pregfrecuentes.html
Title: Frequently Asked Questions.
Tax on the Assets (Impuesto Sobre los Activos).
What is the Tax on the Assets?
It is an annually applicable tax on the goods in possession of the taxpayers, who could be Legal Persons (with operations or not) or Physical Persons with businesses of sole proprietorship and organized accounting.
What is burdened by this tax?
The total value of the assets, including in an explicit way the real estate, that appear in the taxable balance of the taxpayer, that is not fixed by inflation and after the deduction of depreciation, amortization and reserves implemented for uncollectible accounts.
Which Assets are included in the tax basis?
Cash in Cash Desk and Bank.
Accounts Receivable - Clients (minus authorized reserve).
Accounts Receivable - Administration Employees and Employees.
Accounts Receivable - Shareholders.
Inventories.
Merchandise in Transit.
Paid in advance expenses.
Buildings (net and not fixed by inflation).
Improvements in Renting (net).
Lands.
Automobiles and Equipment (net).
Other Net Fixed Assets.
Fixed Credit Investments.
Intangible Assets.
What Assets do not comprise the tax basis?
Investments in shares in other companies.
Lands located in the rural zone.
Real estate that by their nature are used for agricultural operations.
Advance taxes or advance payments.
Is there some exemption for the payment of the Tax on the Assets?
The Legal Persons who are free of the payment of this tax are those ones who, according to the implementation of the Código Tributario (Taxes Code), Special Laws or Contracts approved by the National Congress, are totally free of the payment of the Impuesto Sobre la Renta (ISR) (Income Tax in the United States).
Who can ask for a temporary exclusion?
Those companies whose acquired net fixed assets are higher than 50% of the total assets.
Those companies whose investments, that by the nature of their activity have a cycle of installation, production and beginning of their operations greater than one (1) year, so that determined assets are excluded from the tax basis of this tax.
Those taxpayers with losses by causes of greater or extraordinary force will be able to request for this year the temporary exemption of the Tax on the Assets.
What is the Rate to be paid?
The tax rate will be of one percent (1%) annually, calculated on the total amount of the taxable assets.
How is the payment of this tax determined?
It is determined with data of the General Balance Sheet that is enclosed with the Declaración Jurada (Sworn Financial Statement) of the ISR (Income Tax) that the taxpayer presents.
A form is filled up (back of IR-2) to make the calculation.
When is this tax paid?
The payment of this tax, if it applies, will take place in two quotas, beginning the first in the same date limit fixed for the payment of the ISR (Income Tax), and the second to the counted term of six (6) months from the expiration of the first quota.
In what case does the Tax on the Assets have to be paid?
In case that the amount of the Tax on the Assets is higher than the amount of the ISR (Income Tax), the taxpayer will pay the difference in favor of the tax collecting agency in the two anticipated quotas, divided in equal parts.
On the contrary, that is to say, if the ISR (Income Tax) were equal or higher, the obligation of the payment of the Tax on the Assets.will consider itself to be extinguished.
Can the taxpayer compensate Balances in Favor by effect of the excess in the payment of advance payments of the ISR (Income Tax)?
The taxpayer will be able to ask to the DGII (IRS in the United States) the compensation of this balance with the Tax on the Assets generated according to the previous point.
What implementation will happen with the payments of the Impuesto a la Propiedad Inmobiliaria (IPI) (Tax to the Real Estate Property) in relation to this tax?
For the taxpayers with the closing date of December 31st, the amount to be paid by concept of the IPI during year 2006 will take into account a credit against the Tax on the Assets corresponding to the tax period 2006, whose statements must be presented in the year 2007.
What does it happen if it is paid after the established date?
If it is paid after the deadline date, a surcharge of 10% for lateness in payment will be implemented to the value of the tax to be paid, by the first month or fraction of month; 4% of a progressive and indefinite surcharge by every month or fraction of subsequent month; and 2,58% cumulative compensatory interest by every month or fraction of month, on the amount to be paid of the late quota.
From January 1st, 2007, compensatory interest will increased to a 1,73%
Withholdings.
Is the payment of the Retenciones de Asalariados (Withholdings of Wage-Earners) due to be made on the same day that the payment of the Social Security?
No, the payments of Withholdings of Wage-Earners will continue to be carried out no later than the 10th day of every month.
To name of whom the checks for the payment of the withheld ISR (Income Tax) of the wage-earners must be emitted?
The checks for payments of the liquidation of Withholdings of Wage-Earners must be emitted to the name of: Colector de Impuestos Internos (Collector of Internal Taxes).
Must the checks for the payment of Withholdings of the Wage-Earners be certified although they are paid in the same banks where the taxpayers have accounts?
No, in case that the taxpayer who is going to make the payment has an account in the same bank he/she does not have to certify the check.
Which is the procedure to modify the wages of the employees through the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment) in order to liquidate the ISR (Income Tax)?
The taxpayers must access the SUIR system of the Tesorería de la Seguridad Social (TSS) (Treasury of the Social Security), in the webpage http://www.tss.gov.do, with his class and choose the link of Novedades (New Features) where they will be able to make the modifications that are required.
In which article of Law 11-92 is it mentioned that the employees who work in different companies must choose an employer as Agent of Withholding?
Article 73 of the Regulation of the ISR (Income Tax) states that the wage-earners that receive income of other employers must choose as his/her Agent of Withholding the company where he/she earns a greater wage, as his/her only Agent of Withholding, with prior authorization of the DGII.
Is it possible to update Novedades (New Features) of the payroll in the SUIR system via telephone through the DGII?
Yes, through the Centro de Atención Telefónica (Telephone Assistance Center) of the DGII (809-689-3444 and 1-809-200-6060 from the interior of the country without charges –toll free-) the taxpayers will be able to update Novedades (New Features).
Which is the procedure for the taxpayers to make the payment of the ISR (Income Tax) according to the system of the TSS?
The taxpayers must go to the affiliated commercial banks (Bancos Popular, Bancos León, Bancos BHD, and Bancos de Reservas –Reserves Banks-) with the payment voucher, emitted through the webpage of the Tesorería de la Seguridad Social (Treasury of the Social Security) (www.dgii.gov.do).
How will the taxpayers receive the liquidation and payment voucher of the Withholdings of Wage-Earners?
The taxpayers will receive the voucher for the payment of their liquidation through the TSS; it can be printed from the webpage of the TSS or in the affiliated banks.
What document must present the taxpayers in the banks for the payment of the Withholdings of the Wage-Earners?
The taxpayers can pay their Withholdings presenting the liquidation of the ISR (Income Tax) payment, with the reference number or the voucher of payment that is generated through the SUIR system of the TSS.
What is the procedure for implementing the ISR (Income Tax) to the employment bonuses that receive the wage-earners with the new method of sending them through SUIR?
The representatives must access the SUIR system through the webpage of the TSS (www.tss.gov.do), choose the option Novedades, Cambio de Salario y Otros (New Features, Change of Wages and Others), insert the number of the Cédula de Identidad y Electoral (Electoral and Identification Card) of the employee who will receive the employment bonus in the company, click on Buscar (Search), confirm the data of the employee, insert the value of the employment bonus in the corresponding space, then click on the options of Insertar (Fill Up) and Aplicar (Implement) Novedades (New Features).
Through which disposition can the taxpayers obtain more information about the agreement between the TSS and the DGII?
The taxpayers can obtain all the information about the agreement between the Tesorería de la Seguridad Social (Treasury of the Social Security) and the Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) through Norm 10-04.
Note: Norm 10-04 is published in the section of General Norms of our webpage (http://www.dgii.gov.do/legislacion/normas2004.html).
What is the procedure for taxpayers to send the payroll’s data through the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment) that the TSS operates?
The taxpayers must be enrolled in the Tesorería de la Seguridad Social (Treasury of the Social Security) and to update the payroll’s data of their companies.
Can the taxpayers register in the TSS through the DGII?
At the moment, only the Tesorería de la Seguridad Social (Treasury of the Social Security) is registering in the Sistema Único de Información, Recaudo y Pago (SUIR) (Unique System of Information, Collection, and Payment).
How must be placed the wages in the space Salario Cotizable (Quotable Wages) for the ISR (Income Tax) of the SUIR system with or without the Social Security implemented?
In the space Salario Cotizable (Quotable Wages) of the ISR (Income Tax) the wages that the employee earns without having deducted the Social Security to him/her must be placed.
What is the procedure for sending Otras Retenciones IR-17 (Other Withholdings IR-17) through SUIR?
The representatives must access SUIR through the webpage of the TSS, in option DGII, choose IR-17, fill up the form, confirm the data that have been inserted, and then click in the option Declarar (To Make the Statement).
Through what link can be accessed the form IR-17 of Otras Retenciones (Other Withholdings) in the SUIR Plus?
The taxpayers must access the webpage of the TSS through the link http://www.tss2.gov.do/Login.aspx?log=r, insert the RNC (National Registry of Taxpayers number), ID number and password, and log in the system, and then choose DGII and click on Declaración IR-17 (Statement IR-17) (Form IR-17).
What is the procedure to follow in order to make a correction of form IR-17 through SUIR Plus?
In order to modify the data filled up in form IR-17, the interested user must access SUIR Plus through the webpage of the TSS before the 10th day of every month, and in option DGII, choose IR-17, fill up the form, confirm again the data that have been filled up, and then click on the option “Actualizar Declaración” (“Update Statement”).
What withholding must the companies implement as an item of income when the owners are physical persons?
The withholding that the companies must implement to the physical person as an item of income is 10% according to Law 288-04.
Impuesto a la Propiedad Inmobiliaria (IPI) (Tax to the Real Estate Property) / Impuesto sobre las Viviendas Suntuarias y los Solares Urbanos no Edificados (IVSS) (Tax on the Sumptuary Houses and the Non-Built Urban Lots).
What are the Taxes that are due to be paid for real estate transfers?
The Taxes that are due to be paid for real estate transfers are the following ones:
3% of the value of the real estate property.
Law 80-99 (Impuestos sobre Documentos) (Taxes on Documents) on the value of the real estate property.
What are the requirements for declaring real estate property in the IPI and where must they be presented?
The interested party will have to go to the Administration or a Local Agency that corresponds to him/her with the following documents:
Communication informing the exact address of the real estate property and the owner;
Copy of the Title of Property, Letter of Certainty from the Registrar of Titles, Sentence of the Tribunal Superior de Tierras (Superior Court of Lands) or Act of Sale of the real estate property;
Copy of the Mensura Catastral (Cadastral Measure) (if it exists);.
Copy of the draft of the Improvement built in the lot; and
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card) in the case of Physical Persons; Tarjeta Tributaria de Identificación (Taxes Identification Card), in the case of Companies; and Passport in the case of Foreigners or Dominicans living abroad who do not have Cédula de Identidad y Electoral (Electoral and Identification Card).
What is the rate to be paid for the IPI?
One percent (1%) on the excess of the amount of five million pesos, which are exempted.
Will the commercial lots and premises be taxed with a 1% of the excess of the amount of RD$5.000.000,00 with the Reforma Fiscal (Tax Reform) (Law 288-04)?
Yes, according to Law 288-04 the non-built lots and those ones where in their lands there is a building are burdened with this tax; the real estate property destined for housing and commercial premises, when they exceed the amount of RD$5,000,000.00 (five million pesos). The commercial premises are excluded, because they are taxed by the Impuesto Sobre Activos (Tax on the Assets). (Translator’s note: There is a contradiction here with the information given by the DGII regarding the commercial premises. It is pertinent that the reader consult by himself/herself this information directly with the DGII.)
What is taxed by the IPI/IVSS?
Houses and commercial establishments in urban or rural zones, and non-built urban lots, which are the property of Physical Persons or Companies of Sole Proprietorship without organized accounting.
What is exempted from the IPI/IVSS?
Houses whose value is lower than the amount of five million pesos (RD$5,000,000.00).
Houses whose owners are sixty and five (65) years old, in the case that this house has not been transferred to another owner in the last fifteen (15) years, and the owner has only this house as his/her real estate property.
The buildings and lots in the name of the Dominican State, Charitable Institutions, Religious Organizations and Diplomatic Delegations.
Who must pay the IPI/IVSS?
The owners of houses and lots whose value exceeds the amount of five million pesos (RD$5,000,000.00).
When is it due to be presented and paid for?
It must be presented annually in the Declaración Jurada (Sworn Financial Statement) within the first sixty (60) days of the year, and it must be paid in two (2) semester quotas, the first on March 11th, and the second on September 11th.
Motor Vehicles.
What are the requirements to make sales transfer of motor vehicles and how much must I pay?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) the following documents:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of both the seller and the buyer of the vehicle.
Original Matrícula (Motor Vehicle Certificate), properly endorsed.
Notarized and legalized Act of Sale.
Certification of Plan Piloto (Translator’s note: Plan Piloto is a Police Department office in Santo Domingo).
Payment of the Sales Transfer Tax of 2% of the value of the vehicle (according to the rates table).
Receipt of payment of RD $100,00 for printing of the Matrícula (Motor Vehicle Certificate).
Receipt of payment for service of RD $300.00.
Receipt of payment required by Law 80-99 out of the value of the vehicle (according to rates table).
What are the requirements to request license plates duplicates and what is the rate to be paid?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) a communication requesting the elaboration of a new License Plate, annexing:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of the vehicle’s owner.
Certification of Complaint to the Policía Nacional (National Police).
Publication of loss of License Plate in a newspaper of national circulation, certified by 3 consecutive days.
Collection of services for RD$300.00.
Original Matrícula (Motor Vehicle Certificate).
Receipt of payment (License Plate emission) of RD$2,500.00 for automobiles and RD$200.00 for motorcycles.
Receipt of payment of the RP-01 (printing of Matrícula –Motor Vechicle Certificate-) for RD$100.00.
What are the requirements for requesting duplicates of Matrículas (Motor Vehicle Certificates) and what is the rate to be paid?
The interested party will have to deposit in the Oficinas de Servicios Personalizados de Vehículos de Motor (Motor Vehicles Offices of Personalized Services) the following documents:
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card), or Passport (in case of foreigners) of the vehicle’s owner.
Copy of the Tarjeta de Identificación Tributaria (Taxes Identification Card) in the case of Companies.
Publication of loss of Matrícula (Motor Vehicle Certificate) in a newspaper of national circulation (certified by the newspaper).
Certification of Complaint to the Policía Nacional (National Police).
Receipt of payment for RP-01 (printing of Matrícula –Motor Vechicle Certificate-) of RD$100.00.
Collection of services for RD$300.00.
The duplicate must be requested by the vehicle’s owner, or an authorized representative by means of a legalized power.
Legal Successions and Donations.
What are the requirements for presenting Declaraciones Sucesorales (Legal Successions Statements)?
The interested party will have to go to Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) with the following documents:
Death Certificate (indispensable).
Copy of the Cédula de Identidad y Electoral (Electoral and Identification Card) of the deceased.
Birth Certificate of the inheritors or heirs (indispensable).
Marriage Certificate (if it applies).
Documents related to the funeral expenses and the pending debts to be paid.
Testament or Will (if it exists).
Financial Certificate and Bank Account Books.
Titles of Property.
Declaración Jurada (Sworn Financial Statement) (form SD-1 and Annexes).
What is the Tax that is due to be paid for Donations?
The Tax to be paid for Donations according to Law 2569 (modified by Laws 288-04 and 557-05) is 25% of the value of the donation.
Are the Donations received by the Not-For-Profit Organizations exempted from the payment of the ISR (Income Tax)?
The Donations obtained by the Not-For-Profit Organizations are exempted of the payment of ISR (Income Tax) whenever such income and the social patrimony are destined to the aims of their creation and in no case they are distributed directly or indirectly among the associates; according to what it is stated on Article 299 of Law 11-92. However when these Organizations generate income originating from activities of a different nature from the intentions for which they were created, these incomes will be subject to this tax.
What percentage can be deducted by the companies out of the Donations that they make?
The companies can deduct themselves up to 5% of the taxable net income of the exercise, after carrying out the compensation of loss originating in previous exercises, when it corresponds when they make donations to Not-For-Profit Organizations properly registered, according to Articles 287 of Law 11-92 and 31 of the Reglamento (Regulation).
What are the requirements for the companies to make donations to Non-Governmental Organizations (NGOs)?
The companies that wish to make donations will have to comply with the following norms:
The donations can be made in money or species, tangible and intangible goods, real estate property and in quantifiable services.
The value of the donations made in non-real-estate property, real estate property or other species, which constitute capital assets, registered in joint accounts of Categories 2 or 3, will have to agree with the value in books whereupon these goods are entered by the taxpayer when making the donations. The donations made in stocks or shares, bonds, certificates and similar ones, will be computed according to their value in book, updated with the premiums, discounts, dividends or interests receivable.
The donor will have to credit, with the respective receipt or document given by the beneficiary organization, the amount and destiny of the donation that has been made.
In order for a donation to be deducted to a donor, the beneficiary organizations will have to be enrolled previously in a special registry that will be kept by the Administration. This registration will have to be renewed every three years, previous verification of the fact that the organization is fulfilling the aims of its creation and the formal duties that correspond to it as stated in the Código Tibutario (Taxes Code).
Not later than March 15th of every year, the referred organizations will have to inform to the Administration of the donations received in the previous year, including the statement of the donors, the donated amounts and goods.
In the case of donations in money, the deduction will only be able to be computed when the respective amount indeed is given to the organization receiving the donations, if the donation is made in cash; or once the checks, letras de cambio (letters of transfer) or other similar documents of payment are received by the beneficiary organization, if the donation takes place by means of titles, values or document of credit.
The donations will have to fulfil, in addition, the effective legal dispositions for the validity of the donations.
What is burdened by this tax?
All transfers of non-real-estate property or real estate property caused by death or donation.
Who must pay?
The testament/will inheritors or heirs, successors and beneficiaries.
Donees.
Who are exempted?
The amount of the transfer is lower than five hundred pesos (RD$500.00).
The homestead instituted by law.
Life insurances of the deceased.
The goods bequeathed by testament to public and charitable institutions, charity or public utility institutions recognized by the State.
When is it due to be presented and to be paid?
Within thirty (30) days after the death, it is required to present documentation, for liquidation of the legal file.
What form is it required to be presented?
The required form is Form SD-01 and Annexes in original format.
Translator’s Disclaimer: This document has been translated for general information purposes. For official information, please, contact the DGII or a qualified lawer.
Monday, August 13, 2007
TAX ELIMINATION
Newspaper: Diario Libre.
Web page: http://diariolibre.com/app/article.aspx?id=114764
July 29th, 2007, 10:22 p.m.
New Law forces DGII (IRS in U. S.) to eliminate 17 taxes.
The reductions will be applied as of August, according to the legal ads published by the Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) (IRS in U. S.).
23 services of certifications will be free of charge for the applicants.
Santo Domingo. With the approval of Law 173-07, on Tax Collecting Efficiency, the Dirección General de Impuestos Internos (DGII) (IRS in U. S.) will eliminate at least 17 small taxes in rates of services by the State, in addition to the fact that it reduces four taxes in the areas of real estate, business and vehicles.
In a legal ad published by the DGII (IRS in U. S.), it is expressed also that 23 services of certifications that the institution grants now will be free of charge for the applicants.
The taxes on tickets of public shows, documents, medical certificate, seals of national and imported alcoholic beverages, and the copies of abstracts of civil act and divorces are included among the taxes that as of August of this year are eliminated.
More reductions
Also, the legislation establishes the reduction of the tax to real estate transfers from 4,3% to 3%, whereas the tax for sale transfer of vehicles is lowered from 3,3% to 2%.
The taxes for the constitutions of companies are reduced from 1,83% to 1% on the capital decided in the contract or agreement that gives birth to the Company. A similar reduction will also be applied to the taxes for the increases of capital of the companies.
In addition, they will be free of charge the certifications Presentation of Declarations, Payment of Taxes and Exemptions, Tax to the Real Estate Property, Exemption of the Tax on the Sumptuary Houses and the Non-Built Urban Lots (IVSS), Motor Vehicles, Companies, Refund of Checks, Reimbursements and Deposits in Consigment and Non Objection, Transfers of Non-Real-Estate and Real Estate Titles.
Freddy Miranda,
Translated by Orlando Alcántara
Web page: http://diariolibre.com/app/article.aspx?id=114764
July 29th, 2007, 10:22 p.m.
New Law forces DGII (IRS in U. S.) to eliminate 17 taxes.
The reductions will be applied as of August, according to the legal ads published by the Dirección General de Impuestos Internos (DGII) (General Directorate of Internal Taxes) (IRS in U. S.).
23 services of certifications will be free of charge for the applicants.
Santo Domingo. With the approval of Law 173-07, on Tax Collecting Efficiency, the Dirección General de Impuestos Internos (DGII) (IRS in U. S.) will eliminate at least 17 small taxes in rates of services by the State, in addition to the fact that it reduces four taxes in the areas of real estate, business and vehicles.
In a legal ad published by the DGII (IRS in U. S.), it is expressed also that 23 services of certifications that the institution grants now will be free of charge for the applicants.
The taxes on tickets of public shows, documents, medical certificate, seals of national and imported alcoholic beverages, and the copies of abstracts of civil act and divorces are included among the taxes that as of August of this year are eliminated.
More reductions
Also, the legislation establishes the reduction of the tax to real estate transfers from 4,3% to 3%, whereas the tax for sale transfer of vehicles is lowered from 3,3% to 2%.
The taxes for the constitutions of companies are reduced from 1,83% to 1% on the capital decided in the contract or agreement that gives birth to the Company. A similar reduction will also be applied to the taxes for the increases of capital of the companies.
In addition, they will be free of charge the certifications Presentation of Declarations, Payment of Taxes and Exemptions, Tax to the Real Estate Property, Exemption of the Tax on the Sumptuary Houses and the Non-Built Urban Lots (IVSS), Motor Vehicles, Companies, Refund of Checks, Reimbursements and Deposits in Consigment and Non Objection, Transfers of Non-Real-Estate and Real Estate Titles.
Freddy Miranda,
Translated by Orlando Alcántara
CONSPIRACY AGAINST THE CARIBBEAN
Newspaper: Diario Libre.
Web page: http://www.diariolibre.com/app/article.aspx?id=114687
July 29th, 2007, 6:51 P.M.
Tourist conspiracy against the Caribbean.
In the Caribbean they are getting together against protected zones.
Bahía de las Águilas (Bay of Eagles): an appraised booty for tourism.
Santo Domingo. The Society for the Conservation and Study of Caribbean Birds (SCSCB), the greatest regional organization dedicated to the conservation of biodiversity, concluded its 16th meeting in Viejo San Juan, Puerto Rico. The conference lasted 5 days, and it discussed the impact of the Climatic Change in the towns and birds of the Caribbean, and on the increasing threat of tourist development to the biodiversity of the region. Representative organizations of 19 countries described as critic the situation in the Caribbean islands.
The delegates became perplexed when listening to the report of which it seems to be a campaign without precedents of Caribbean governments to change the legal status of areas previously protected for being important sites of conservation, and to take step to a devastating tourist development. Two of the denounced cases involve the chain of hotels Four Seasons Hotels and Resorts Group. The government of Grenada has plans of selling to this partnership the Mount Hartman National Park, which was created in 1996 to save the Dove of Grenada, its national bird, which is in critical danger of extinction. Studies show that almost a 25% of the hardly counted 80 individuals of this species live in the small coastal restricted zone of Mount Hartman. The area is, then, vital for their survival.
In Puerto Rico, the Corredor Ecológico del Norte (Ecological Strip of the North), habitat of the threatened species of Yaguasa of the Caribbean, endemic duck of the region, the migratory Playero Silbador (Singing Beach Bird), and an important place of nesting of the Tinglar turtle, is objective of tourist development by the group Four Seasons, that has become a threat for the exclusive biodiversity of the insular Caribbean. This ecological zone is a natural area located in the already degraded Reserva Nacional de El Yunque (El Yunque National Reserve), one of the first forest reserves of the Western Hemisphere, that is the main habitat of the Cotorra of Puerto Rico (Puerto Rico Parrot), the most threatened of its sort.
In the Dominican Republic.
In the Dominican Republic, a law in 2002 was promulgated that changes the limits and categories of several protected areas, in order to build hotels in sites of great ecological value like Bahía de las Águilas (Bay of Eagles), a coastal area of the Parque Nacional Jaragua (Jaragua National Park), that is part of the Reserve of Jaragua-Bahoruco-Enriquillo Biosphere areas, which includes three parks, and it is considered to be one of the areas with more biodiversity in the island. As always, the strategy consists of altering the legal status of the protected area to facilitate the construction of hotels. Local Non-Governmental Organizations (NGOs) objected the constitutionality of this law before the Supreme Court of Justice, but the Court did not pay due attention to the demand. The Secretary of State of Environment and Natural Resources has denounced the plot to new modifications of this law.
Andrew Dobson, President of the SCSCB, considers that it is an unjustifiable backward movement at a time at which the coastal conservation of the forests and areas is essential to mitigate the impacts of the climatic change. According to him, this type of development will only be able to damage the reputation of the Caribbean as an atmosphere-friendly tourist destiny. It adds that this type of tourist projects without future vision will accelerate the effects of climatic change on the Antillean forests, and the singular biodiversity that they lodge will be the main victim, since 85% of the natural forests of the Caribbean has already been destroyed. According to the last report of the United Nations on Climatic Change, the Antilles run an enormous short term risk of being struck by these changes.
Impact
85% of the Antillean forests has already been destroyed.
The climatic change will strike harder if we continue destroying the forests.
A tourist company glides to construct hotels in protected areas.
guerrero.simon@gmail.com
- Simón Guerrero
Freddy Miranda,
Translated by Orlando Alcántara
Web page: http://www.diariolibre.com/app/article.aspx?id=114687
July 29th, 2007, 6:51 P.M.
Tourist conspiracy against the Caribbean.
In the Caribbean they are getting together against protected zones.
Bahía de las Águilas (Bay of Eagles): an appraised booty for tourism.
Santo Domingo. The Society for the Conservation and Study of Caribbean Birds (SCSCB), the greatest regional organization dedicated to the conservation of biodiversity, concluded its 16th meeting in Viejo San Juan, Puerto Rico. The conference lasted 5 days, and it discussed the impact of the Climatic Change in the towns and birds of the Caribbean, and on the increasing threat of tourist development to the biodiversity of the region. Representative organizations of 19 countries described as critic the situation in the Caribbean islands.
The delegates became perplexed when listening to the report of which it seems to be a campaign without precedents of Caribbean governments to change the legal status of areas previously protected for being important sites of conservation, and to take step to a devastating tourist development. Two of the denounced cases involve the chain of hotels Four Seasons Hotels and Resorts Group. The government of Grenada has plans of selling to this partnership the Mount Hartman National Park, which was created in 1996 to save the Dove of Grenada, its national bird, which is in critical danger of extinction. Studies show that almost a 25% of the hardly counted 80 individuals of this species live in the small coastal restricted zone of Mount Hartman. The area is, then, vital for their survival.
In Puerto Rico, the Corredor Ecológico del Norte (Ecological Strip of the North), habitat of the threatened species of Yaguasa of the Caribbean, endemic duck of the region, the migratory Playero Silbador (Singing Beach Bird), and an important place of nesting of the Tinglar turtle, is objective of tourist development by the group Four Seasons, that has become a threat for the exclusive biodiversity of the insular Caribbean. This ecological zone is a natural area located in the already degraded Reserva Nacional de El Yunque (El Yunque National Reserve), one of the first forest reserves of the Western Hemisphere, that is the main habitat of the Cotorra of Puerto Rico (Puerto Rico Parrot), the most threatened of its sort.
In the Dominican Republic.
In the Dominican Republic, a law in 2002 was promulgated that changes the limits and categories of several protected areas, in order to build hotels in sites of great ecological value like Bahía de las Águilas (Bay of Eagles), a coastal area of the Parque Nacional Jaragua (Jaragua National Park), that is part of the Reserve of Jaragua-Bahoruco-Enriquillo Biosphere areas, which includes three parks, and it is considered to be one of the areas with more biodiversity in the island. As always, the strategy consists of altering the legal status of the protected area to facilitate the construction of hotels. Local Non-Governmental Organizations (NGOs) objected the constitutionality of this law before the Supreme Court of Justice, but the Court did not pay due attention to the demand. The Secretary of State of Environment and Natural Resources has denounced the plot to new modifications of this law.
Andrew Dobson, President of the SCSCB, considers that it is an unjustifiable backward movement at a time at which the coastal conservation of the forests and areas is essential to mitigate the impacts of the climatic change. According to him, this type of development will only be able to damage the reputation of the Caribbean as an atmosphere-friendly tourist destiny. It adds that this type of tourist projects without future vision will accelerate the effects of climatic change on the Antillean forests, and the singular biodiversity that they lodge will be the main victim, since 85% of the natural forests of the Caribbean has already been destroyed. According to the last report of the United Nations on Climatic Change, the Antilles run an enormous short term risk of being struck by these changes.
Impact
85% of the Antillean forests has already been destroyed.
The climatic change will strike harder if we continue destroying the forests.
A tourist company glides to construct hotels in protected areas.
guerrero.simon@gmail.com
- Simón Guerrero
Freddy Miranda,
Translated by Orlando Alcántara
CENTRAL BANK IMF
Newspaper: Diario Libre.
Web page: http://diariolibre.com/app/article.aspx?id=114760
July 29th, 2007, 10:19 p.m.
Banco Central (BC) (Central Bank) says that all the goals were fulfilled with the IMF.
Santo Domingo. The Government informed that throughout this year it has fulfilled and exceeded all the quantitative goals decided with the International Monetary Fund (IMF). A report given by the Banco Central (BC) (Central Bank), indicates that the prudent handling of the monetary and fiscal authorities, and the commitment with the maintenance of the macroeconomic stability helped in the fulfillment “with comfort” of all the quantitative criteria of performance.
It adds that during the period January-June 2007 the balance of the non-finance public sector reached a surplus of DR$13,653 million pesos, including the deposits of Verizon, with which surpassed the goal of DR$7,600 million pesos.
In the first semester, the Government had the commitment to transfer to the Banco Central (Central Bank) DR$2,900 million pesos, but it surpassed the amount and it gave DR$2,945 million pesos to reduce the quasi-fiscal deficit.
Freddy Miranda,
Translated by Orlando Alcántara
Web page: http://diariolibre.com/app/article.aspx?id=114760
July 29th, 2007, 10:19 p.m.
Banco Central (BC) (Central Bank) says that all the goals were fulfilled with the IMF.
Santo Domingo. The Government informed that throughout this year it has fulfilled and exceeded all the quantitative goals decided with the International Monetary Fund (IMF). A report given by the Banco Central (BC) (Central Bank), indicates that the prudent handling of the monetary and fiscal authorities, and the commitment with the maintenance of the macroeconomic stability helped in the fulfillment “with comfort” of all the quantitative criteria of performance.
It adds that during the period January-June 2007 the balance of the non-finance public sector reached a surplus of DR$13,653 million pesos, including the deposits of Verizon, with which surpassed the goal of DR$7,600 million pesos.
In the first semester, the Government had the commitment to transfer to the Banco Central (Central Bank) DR$2,900 million pesos, but it surpassed the amount and it gave DR$2,945 million pesos to reduce the quasi-fiscal deficit.
Freddy Miranda,
Translated by Orlando Alcántara
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