5 steps to settle your debts with the DGII

Dominicans, both personally and in business, are increasingly responsible when it comes to managing our finances. I always tell my clients that the best recipe for good accounting is planning and prevention. However, on many occasions and for very different reasons, we cannot avoid running into problems such as taking on debt.

When someone asks me “what can I do to settle my debts?”, my recommendation is always the same: reach an agreement with the Dirección General de Impuestos Internos (DGII), the Dominican tax authority. With this solution, you can pay your debts in equal instalments.

These agreements can be requested by both individuals and legal entities, using the forms established by the DGII. The institution details all the conditions in its taxpayer guides.

What are the conditions to request an agreement?

1. You must pay an initial amount of at least 10 % of the total debt.
2. You must have real estate or vehicles registered in your name with the DGII.
3. If you do not meet the previous condition, you must sign a notarised promissory note detailing the concept of the debt and the amount covered by the payment agreement.
4. You must not have overdue instalments from previous agreements.
5. The maximum is 12 instalments. In my experience, a good way to secure this maximum is to request more, for example 18 instalments.

Once the agreement with the DGII is reached, it is very important not to fall behind on the instalments, since late payments carry a 1.73 % interest surcharge.

I hope you find these tips useful. If you have any questions, write to us.