President Fernández signed into law the long debated tax reform bill. The tax package is intended to replace the funds that will be lost as a result of the implementation of the free trade agreement with the United States and Central America (DR-CAFTA), which provides for reductions in import duties and tariffs. The most important aspects of the bill are the following :
a) Application of the 16% ITBIS (VAT) to more than 100 new products.
b) Increase from 25 to 30% of the corporate tax rate and highest bracket for individuals.
c) 1.5% tax on gross sales for corporations.
d) New 17% vehicle registry tax.
e) New 1% tax on corporate assets. |