This is a compilation of some terms used in tax matters.
TO
PAY: Make a note on the right side of the account or to the credit of the same. Register or download an amount to the credit of an account. Amount that a Bank writes in favor of the client in its current account.
SHAREHOLDER: Natural or legal person who owns one or more shares of a company, for which he has rights and obligations within the company in accordance with the provisions of the statutes.
ON ACCOUNT: Partial payment. Term applied to the payment of a portion of an obligation.
ACCESSORIES: They are the values that do not make up the main debt, such as: maintenance of value, interest and fines, that they charge on the tax paid after the term.
CREDITOR: Legal or natural person who owns a credit, to whom it is owed, and has the power to demand the fulfillment of that benefit from another person who is the debtor.
INFRINGEMENT ACT: Document that outlines an inspection, with the infractions noticed or the certification of regularity accredited.
TAXED ACTIVITY: Any rent, transfer, import, service, rental of personal property or other activity that is indicated in the Tax Code.
ASSETS: Set of goods and / or rights owned by a person.
ASSETS CATEGORY I: It is made up of the buildings and structural components of a legal or moral person.
ASSETS CATEGORY II: It is made up of common cars and light trucks, office equipment and furniture, computers, information systems and processing equipment.
ASSETS CATEGORY III: Composed of any other negligible property, not specified in categories 1 and 2.
FIXED ASSET: Tangible asset that is held for the services it provides in the production of goods and services; any element of a plant.
NET FIXED ASSETS: Difference between the gross value of the fixed asset and its accumulated depreciation.
CAPITAL ASSETS: Means all assets held by the taxpayer in connection or not with a business.
INFRINGEMENT ACT: Document that outlines the commission of one or more offenses with the infractions noted.
ADMINISTRATIVE ACTS: Decisions of the administrative authorities, which may be general rules, resolutions, circulars, agreements and mandates, dictated or executed in matters pertaining to their powers.
DEBT UPDATE: It consists of obtaining the maintenance of value of an owed amount.
CUSTOMS: Offices established by the Government at borders, coasts and airports to collect customs income or customs duties and to control the entry and exit into Dominican territory.
TAX ADMINISTRATION: Formed by the General Directorate of Internal Taxes and the General Directorate of Customs, for the purposes of administering the taxes established by the Tax Code and the other laws that establish taxes or fees and their regulations; the hierarchical superior is the Secretary of State for Finance.
AD-VALOREM: Taxes that are applied on the value or price. Eg ITBIS.
AGENT: Person to whom someone delegates the authority to carry out a certain activity on their behalf.
PERCEPTION AGENT: They are the subjects designated by legal mandate, to receive from the tax debtor the tribute to which he is obliged, and must deliver it to the Tax Administration within the period provided by law.
RETENTION AGENT: Responsible person who, by designation of the law or body that is in charge of collecting and supervising taxes, due to their public functions or due to their activity, trade or profession, intervenes in acts or operations in which they must carry out the withholding or collection of the corresponding tax. ADJUSTMENT FOR INFLATION: It is made based on the methodology established in the regulation, based on the Central Bank's consumer price index.
CASH: When the price of a good is paid in full upon receipt of the merchandise.
ALICUOTA: Percentage value that must be applied on the tax base according to the corresponding tax, to determine the amount of the tax.
RENT: Action to deliver a movable or immovable property for use in exchange for a rental contract, without giving up the property right.
FISCAL AMNESTY: It is the benefit that is granted by law to tax debtors. Its purpose is to fully forgive debts and / or sanctions derived from non-compliance with tax obligations.
AMORTIZE: Cancel a debt through periodic payments, until its total has been returned, including interest. Withdraw obligations or other debt securities in circulation in a certain period.
ADVANCE: It is an obligatory payment on account to the Income Tax, related to the current fiscal year, which is paid on the basis of the tax settled from the previous year.
TARIFF: Rate that determines the rights to be paid for certain lines for various reasons and circumstances.
ARBITRIA: These are fees paid for the provision or maintenance of a public service.
FISCAL HARMONIZATION: It consists of taking the necessary measures so that the fiscal rules of the participating countries of some type of community or economic integration are consistent with each other, in order to avoid distortions in the integrated market.
ROOT: Order issued by the competent authority, which makes it impossible for the debtor to leave the country, so that the person can face his responsibility in pending processes or results of a trial.
LEASE: Temporary assignment of the use of a good for a certain agreed rent, (synonym of rent). Contractual agreement between the owner of the equipment or asset (lessor) and the user of the equipment (lessee) and that upon expiration or termination of the contract, once the agreed payments have been fulfilled, the lessee has the following options: a) Buy the property with the payment of the agreed residual value, b) Renew the contract and c) Return the property to the lessor.
PREVENTIVE NOTATION: Preventive registration of assets subject to registration (Real Estate and Vehicles), carried out by the Tax Administration, as a precautionary measure in coercive collection.
FISCAL YEAR: Calendar period between January 1 and December 31; April 1 and March 31; July 1 and June 30; October 1st and September 30th.
AWARDS: Action carried out by the Tax Administration through the Public Ministry for those who commit certain tax crimes.
SEATS: Records of transactions, activities, events, etc., recorded in chronological order. ACCOUNTING SEAT: Record of transactions, activities, events, etc., recorded chronologically in an organized accounting system.
A ONEROUS TITLE: It is the name that receives a provision of services or provision of goods when in exchange a payment is received in money or in kind.
TAX AUDITOR: It is the official in charge of carrying out the analysis of accounting records, supporting documentation and the veracity of what is reported in the sworn statements.
AUDIT: Critical and systematic examination of the financial statements, accounting records, of public or private organizations, business institutions or individuals, in order to determine the veracity of the records and issue the corresponding opinion, on the documents provided.
EXTERNAL AUDIT: It is the verification of financial statements, made by a firm outside the company; external audit directly influences overall control, since it deals with judging the accuracy and correct presentation of financial information.
FISCAL OR TAX AUDIT: Critical and systematic examination of the financial statements, accounting records, of public or private organizations, institutions, companies or individuals, in order to determine the veracity of the records and to express an opinion on the declared documents and values.
SELF-ASSESSMENT: Setting the price or value of a good in terms of a specific currency, made by the same person who owns the good. It allows determining the tax base for certain taxes.
B
BALANCE SHEET: Summary or synthesis of the accounting reality of a company that allows knowing the general business situation at a given time. Financial statements that are presented at a certain date. Also known as balance sheet, balance sheet, statement of assets and liabilities.
BASE CERTAIN: Existing elements that allow to know directly and exactly the fact that generates a tax obligation and the amount thereof.
TAXABLE BASE: Numerical value on which the tax rate is applied.
PRESUMED BASE: Facts and indirect circumstances that, due to their relationship with the event that generated the income, allow the Tax Administration to establish the existence and amount of an obligation.
BONA FIDE: From Latin, In good faith; with honest intention.
GOODS: Means that satisfy human needs.
REAL ESTATE: Those with a fixed situation that cannot be transferred, without detriment to their existence.
MOVABLE PROPERTY: For the purposes of the Tax on Transfers of Industrialized Goods and Services (ITBIS), these are understood to be those that can be transferred from one place to another, as well as the rights related to them.
INDUSTRIALIZED ASSETS: Those movable bodily assets that have undergone some transformation process.
C
CALCULATION OF THE INFLATION RATE: The inflation rate corresponding to 12 months is calculated at the national level and at the municipal level, by means of a percentage variation of a 12-month moving average of the one-month price index, in relation to the Moving average for the same month of the previous year.
CANON: Periodic financial benefit for the use or exploitation of a public concession.
CONTRIBUTING CAPACITY: Aptitude that a natural or legal person has to pay taxes and that is in accordance with the availability of resources available.
CAPITAL: Set of assets and rights (Heritage) that an entity has for the development of its economic activities.
SHARE CAPITAL: Set of money, goods and rights contributed by the partners for the common fund that serves as a patrimonial base to a society.
WORKING CAPITAL: Difference between current assets and current liabilities. They are the means available to a company to carry out its normal operations.
CATASTRO: Official inventory of a country's real estate, used to establish its valuation for tax purposes.
CERTIFICATIONS: It is a document that establishes if there is any impediment to carry out on a vehicle any commercial or legal act such as purchase or sale, loans, others.
ISIC (UNIFORM INTERNATIONAL INDUSTRIAL CLASSIFICATION): Classification system of the set of economic activities made by the United Nations and which governs worldwide.
CIF: Cost, Insurance and Freight, that is, "cost, insurance and freight". Name given to the goods payment system when insurance and freight (transportation) costs are included in the cost of goods sold. This also includes the name of the agreed port of destination.
CLOSURE: Closing and sealing of premises or businesses, a sanction imposed for the lack of issuance of invoices or as a conservative measure in the coercive collection of a tax debt.
COLLECTIVE COLLECTION: It is the compulsory collection procedure determined by the competent authority, which is carried out on a liquid and enforceable debt, which is accompanied by preventive and coercive measures.
TAX CODE: It is the set of rules that establish the legal-tax system.
COMMISSIONER: They are natural or legal persons who carry out activities on behalf of third parties, billing on behalf of said companies or natural persons and who receive a commission for this intermediation task, which is credited with the invoice issued by the commission agent.
TAX COEFFICIENT: Indicates in how many percentage units the tax revenue increases for each percentage unit of increase in the Gross Domestic Product (GDP).
APPEARANCE: Presentation of the taxpayer before the pertinent instances according to summons and / or requirement.
COMPENSATION: Form of extinction of the tax obligation, liquidating against it liquid and legally enforceable credits of the taxpayer for taxes and their interests, provided they are collected by the same administrative body and is done before the prescription.
CONDONATION: Release of the payment of taxes, which can only be granted by law with general scope.
CONFUSION: Form of extinction of the tax obligation when the active subject of this, as a consequence of the transmission of the goods or rights subject to the tax, remains in the debtor's situation.
BUYER: Person who acquires, through a certain price, the property of a good or service.
CONSULTATIONS: Questions that anyone can make with personal and direct interest, on controversial tax issues to the authority of the Tax Administration about the correct application of the corresponding legal norm.
TAX DISPUTE: Lawsuit filed by the taxpayer to challenge a determination of the Tax Administration; process that takes place in the administrative court. This administrative and coercive collection court is in charge of taking cognizance of all the demands that are filed on the occasion of the acts of the administration or of the different entities of public law, for which taxes are generally determined.
CONTRABAND: Crime of public order that consists of the illicit circulation, traffic, trade or possession of primary products, articles in the process of elaboration or finished and semovientes, subject to customs control, whether they are permitted or prohibited from import or export by legal mandate, not detracting from the crime due to the fact that the products or articles are exempt from the payment of customs duties.
CONTRIBUTION OF IMPROVEMENTS: It is a tribute based on the principle of benefit, whose function is to recover for the Public Sector the differential benefits that, in the form of increased property value, are derived from the construction of a public work.
CONTRIBUTION: Payment made by Law in which there is specific remuneration.
SPECIAL CONTRIBUTIONS: Those that are charged to satisfy specific needs.
TAXPAYER: Is the one with respect to which the event generating the tax obligation is verified; taxable person in the Taxpayer-Taxpayer relationship.
TAXPAYER: Those people who actually and effectively make the payment.
FISCAL COST: That which is applied to an acquired asset not built by the taxpayer.
ADJUSTED FISCAL COST: It is the reduced fiscal cost for expenses, losses, depreciation and depletion, and other concepts of reduction that may be
duly charged to the capital account, and increased by improvements and more concept of increase, duly incorporated into the Capital account.
FISCAL CREDIT: Tax paid in advance at the time of purchase of a good or service and that the taxpayer can deduct from the tax debit to determine the amount to be paid to the Treasury. Overpaid credit.
D
DUTIES OF THE TAX ADMINISTRATION:
• Duty of reservation
• Duty of publicity
DUTY OF RESERVATION: The Tax Administration must handle at discretion all the acts emanating from the taxpayers.
DUTY OF ADVERTISING: The Tax Administration must make public all the provisions issued by it.
FISCAL DEBIT: Tax arising from the sale of goods and / or services, made in a given period.
DE-CUYUS: Latin term that means whose succession it is. It is only used in succession matters.
SWORN STATEMENT: Manifestation under oath communicated to the Tax Administration, of facts that may constitute the basis for the determination of an obligation. It is presented in the form and places established by laws or regulations; usually through forms.
DEDUCTIONS: They are the amounts that are deducted or decreased from the gross tax to obtain the net tax to pay. They are granted by law and have a certain value, many times they are percentages of values and not fixed amounts, consistent with the principle of uniformity.
TAX DEFRAUD: Tax crime incurred by those who, by simulation, concealment, maneuvers or any other form of deception, mislead the Treasury, resulting in a lower payment of the tax to themselves or a third party at the expense of the tax right to their perception.
TAX CRIME: Unlawful conduct provided by law, which manifests itself in the following modalities:
• Fraud
• Contraband
• Manufacture and falsification of species or fiscal values.
DEPRECIATION: Loss of value due to the use, disuse or wear of the physical goods used in the business.
RIGHTS: These are fees paid for the provision of a public administrative service, or for the use of or exploitation of public goods.
TAX LAW: Set of legal norms that regulate the legal-tax relations between the state and the taxpayers.
TO REPEAL: Act of voiding a previous law entirely by means of another new law.
DISCLAIMERS: Presentation of documentation by the taxpayer to disprove the charges that were made by the treasury.
DETERMINATION: Act by which the occurrence of the generating event is declared and the amount of the obligation is defined; or, the non-existence, exemption or unenforceability thereof is declared.
TAX DEBT: Amount amounting to the liquidation of taxes, interests, fines and surcharges if any, the payment of which constitutes an enforceable obligation.
DEVALUATION: Term that refers to the fall or decrease in the value of the national currency with respect to the currencies of other countries and especially with respect to a currency taken as a reference (in the case of the Dominican Republic, the base currency is the American dollar).
DIRECTORATE GENERAL OF INTERNAL TAXES: State agency that is in charge of the collection and administration of all internal taxes, rates and contributions.
DIRECTORATE GENERAL OF CUSTOMS: Organism that is in charge of the administration of taxes on foreign trade.
DIVIDENDING: Payment of annual profits received by the holders of shares, including labor shares, for their participation in the capital of a company.
DOMICILE: It is the taxpayer's habitual place of residence, where their civil or commercial activities are carried out, where the generating event occurs, the one indicated in the articles of incorporation or the place where the main center of the activity is located.
ELECTION ADDRESS: Taxpayers and responsible parties must set an election address with the express approval of the Tax Administration. Thus constituted it is valid for tax purposes.
FISCAL ADDRESS: It is the place set for all tax purposes.
DONATION: Free delivery or transfer of a good, which can be with or without charge and revocable or non-revocable.
DUMPING: Term used in international trade to qualify the sale of a product at prices lower than the cost of production or less than the common market price within the country of origin.
AND
TAX ELUSION: Action that allows reducing the tax base through operations that are not expressly prohibited by legal or administrative provisions. Means that the tax debtor uses to reduce the tax burden, without violating the law or distorting it.
EMBARGO: Conservatory measure adopted by the Administrative Authority consisting of the occupation, apprehension or retention of property, made by order of a judge or competent authority due to debt or crime, to ensure the satisfaction of the responsibility that the person has contracted.
PREVENTIVE EMBARGO: In order to ensure the payment of the tax debt, the Tax Administration may lock a conservatory embargo for the amount that is sufficient to satisfy the debt.
DISPOSAL: Any transfer between the ownership of a property, whether it be for free or for consideration.
ISSUER: Referred to the person who provides the proof of payment, it is generally the seller or the one who provided the service, except in the case of a purchase settlement, in which case the issuer is the buyer.
COMPANY: Organization made up of one or more natural persons, undivided successions or legal entities, that are dedicated to any lucrative activity of extraction, commerce, industry, services, etc.
MERGED COMPANY: Company product of the union of two or more independent companies, which disappears for legal purposes.
LIQUIDATED COMPANY: That company that when dissolving its business, liquidates its assets and its debts.
EMPRESTITO: It is the concrete credit operation through which the State receives a loan, be it granted by national or foreign entities.
TAX SCALE: In addition to the fixed rate tax, currently the tax scale is used, which comprises a variety of rates, each corresponding
to a section of taxable matter. The tax scale can be proportional, progressive or regressive.
FINANCIAL STATEMENTS: Details or records that systematically and orderly present aspects of the economic and financial situation of a company in a given period, according to generally accepted accounting principles and current legal regulations.
STATEMENTS OF ACCUMULATED RESULTS: Evolution of the balance of accumulated results (not assigned) in a management, the way in which they have been distributed. (Balances accumulated results + management results - dividends paid).
STATEMENT OF CHANGES IN THE FINANCIAL SITUATION: Also known as statements of origin and application of funds, through which the analysis of working capital is carried out; This statement is intended to summarize the financing and investment activities carried out during the period, in order to complement the financial information provided by the remaining reports.
INCOME STATEMENT: Financial Statement that shows the income of an organization as well as its expenses, during a certain period. Also called an income and expense statement or profit and loss statement.
TAX EVASION: Subtract from the payment of a tax that is legally owed. Any willful act or omission, in violation of the tax provisions, aimed at reducing the tax burden in whole or in part for your own benefit or that of third parties.
RENT: It supposes the total and partial liberation that the law grants, with permanent or temporary character of the payment of the tax burden as a means of achieving desirable goals in the social field or in the economic field.
EXTINCTION OF TAX OBLIGATION: Legal act by means of which a tax obligation ends, which is extinguished for the following causes:
• Payment
• Compensation
• Confusion
• Forgiveness or remission
• Prescription.
F
SANCTIONING FACULTY: The Tax Administration is responsible for sanctioning the tax offenses contemplated in the Tax Code, in accordance with the established procedure. Likewise, it is the responsibility of the Tax Administration to formulate the corresponding complaint in cases that find reasonable indications of the commission of crimes, being empowered to become a civil party.
AUDIT POWERS: The power of inspection includes the inspection, investigation and control of compliance with tax obligations, including those who are unaffected, exempt or have tax benefits.
LEGAL SCHOOL (LEGAL): It is the power of the subject to obtain a legal result by his own act, independently and without obligation of another.
TAX FAULTS: Any form of breach of tax obligations typified and sanctioned in accordance with the provisions of the Tax Code.
The following are tax offenses:
• Evasion
• La Mora
• Failure to comply with formal duties.
• Breach of formal duties by officials of the Tax Administration.
EXPIRATION DATE: Date determined as the limit for the fulfillment of a tax obligation, moment from which the debt is demandable, of obligatory observance and subject to the liquidation of accessories and fines.
PUBLIC FINANCE: Everything that refers directly to the way the State procures income and how it meets its expenses.
AUDIT: Function of the Tax Administration that aims to verify the operations and records of a taxpayer, in order to maintain control and review over the taxes that it administers.
FISCO: Treasury or Public Treasury, National Public Treasury. By extension, synonymous with the State or public authority in economic matters.
FOLIO: Sheet of a book or notebook, and more especially, of a file or process. The judicial acts must be foliated, that is, numbered, for ease of appointments and verification that there is no removal of documents.
TAX AUDITOR: Official of the Tax Administration, in charge of carrying out the analysis of the accounting books (Financial Statements), the supporting documentation and all other documentation related to tax aspects and the veracity of what is reported in the sworn statements.
FOB: Free on board, that is, "put on board". Name given to the payment system for goods purchased from other countries, when the amount paid covers only the value of the goods and excludes insurance and freight.
FORM: Pre-printed document, in which the Tax Administration is informed about aspects and calculations related to the determination and / or payment of a tax obligation.
FORM IR-1: Annual affidavit of all the income of natural persons (sole proprietorship businesses) and undivided successions, with their annexes. They can be normal and rectifying.
FORM IR-12: Annual affidavit of other withholdings.
FORM IR-13: Annual affidavit of the salaried withholding agent.
FORM IR-2: Annual affidavit of companies of any denomination.
FORM IR-3: Summary for settlement and monthly payment of withholdings and complementary remuneration.
FORM IR-36: Form used to show the adjustments or estimates practiced to the ISR affidavit of a taxpayer who has been audited and who has determined modifications to his tax debit.
FORM IR-38: Notification of the start of the inspection.
FORM IR-4: Format for calculating employee retention.
FORM IR-6: Format for the monthly calculation of other withholdings.
FORM IR-9: Format for the monthly calculation of the Substitute Tax on Complementary Remuneration.
FORM IT-1: Settlement and monthly payment of ITBIS (Normal payment), amendment, adjustment.
CONSOLIDATION MERGER: It occurs when two or more companies come together and create a new one.
G
GAIN: Any pecuniary benefit, utility or advantage, as opposed to loss.
CAPITAL GAIN: It is the gain from the sale, exchange or other act of disposition of a capital asset.
PUBLIC EXPENDITURE: It is the definition of state resource investments. They are the income of money that the State realizes, according to the law, to fulfill its purposes, which are none other than the satisfaction of public needs.
CURRENT EXPENSES: Those that the State incurs for the normal or habitual development of its functions, being those that arise or are presented in each budgetary financial year.
CAPITAL EXPENSES: They are those disbursements destined to increase the capital formation of the institutions.
FINANCIAL EXPENSES: They are the expenses that originate the interests of the debts contracted by the natural or moral persons.
Lien: Right to land or property that depreciates its value but does not prevent its sale (for example, mortgage).
H
GENERATING FACT: They are the facts that the law says that, once produced, the tax obligation arises.
TAXABLE FACT: It is a fact provided by the Law from which a specific tax obligation arises, it is the expression of an economic activity and at the same time a manifestation of tax capacity in which the legal cause of the taxes is located. It is any economic act that is liable to be taxed or taxed.
I
TAX ILLICIT: Contrary to the legal, synonym of illegal; It is any action or omission that involves violation of tax regulations and constitutes a crime or fault.
TAXABLE: Aspect liable to be taxed.
IMPORT: The introduction to the customs territory of goods for final use or consumption.
TAX: Lien or tax that falls on something, mainly of a fiscal nature.
TAX: Contribution, lien or charge. Tax determined by Law, which is almost always paid in money, the obligation of which has as a generating fact a situation independent of all state activity related to the taxpayer. There is no direct consideration.
DETERMINED TAX: Amount to be paid to the Treasury, after the calculation made.
EQUITY TAX: Those that fall on the manifestations of wealth of taxpayers, expressed in movable and immovable, tangible and intangible assets.
TAX OF THE ADMINISTRATIVE ACTS: The acts of the Tax Administration for which taxes are determined or sanctions are applied, can be challenged within the term of 20 days, by means of Appeal of Reconsideration, Hierarchical (15) days, and Tax Litigation suit.
SPECIFIC TAXES: This tax is established as a fixed amount, regardless of the price of the good.
LIQUIDATED TAX: Resulting from applying the current rate to the taxable base according to the law.
SELECTIVE CONSUMPTION TAX: The one that taxes certain manifestations of services or consumption; as well as the consumption of goods considered luxury.
FOREIGN TRADE TAX: They are taxes or customs duties that are imposed on imports and exports made by a country.
INCOME TAX: That taxing the income or income received by individuals and companies or companies.
DIRECT TAX: One whose impact and incidence are verified on the taxpayer himself, there being no possibility of being transferred. Eg the income or assets of a person.
SPECIFIC TAXES: They are those that are applied taking into account the amount of the good subject to the payment of the tax.
INDIRECT TAXES: They are those that fall on the production, transfers and consumption of goods or services, and have the characteristics of being easily transferable through the increase in prices towards the consumer, who ultimately bears the weight of the tax.
PROGRESSIVE TAXES: When the percentage of income that goes to paying taxes increases as the level of income increases.
PROPORTIONAL TAXES: When the income level destined to the tax payment is constant or independently of the income level.
REGRESSIVE TAXES: When the percentage of income destined to the payment of taxes decreases as the income level of the taxpayers increases.
CORPORATE TAXES: It is a direct and personal tax that taxes the income (or profit of each financial year calculated in accordance with the law) of the companies and other legal entities not subject to the Personal Income Tax..
TAX ON THE TRANSFER OF INDUSTRIALIZED GOODS AND SERVICES (ITBIS): It is the VAT type tax that is imposed on all transfers of industrialized goods and services with 16%.
TAX ON EQUITY: They fall on the manifestations of wealth of taxpayers, expressed in movable and immovable, tangible and intangible assets.
TAX ON SUCCESSIONS AND DONATIONS: It is the one that taxes all transmission of movable and immovable property due to death, either by direct effect of the law or by the last will of the deceased, regardless of whether said movable and immovable property is inside or outside the country.
IMPUTATION: Action to affect a given account the economic facts in relation, origin, nature and destination.
SEIZURE: Empowerment or taking of possession carried out by the judicial, military or other authority by virtue of legal attributions or an imperative reason of public necessity. In the absence of just cause, it constitutes confiscation or usurpation, with the aggravating circumstance of public functions.
TAX INCENTIVES: tax exemptions and facilities that the State grants to promote a particular economic activity, a region or a type of company.
BREACH OF FORMAL DUTIES: It constitutes an infringement for breach of formal duties, any action or omission (to do or not to do), by the taxpayers, responsible parties or third parties.
INAFECT: Not required. A person is unaffected by any tax obligation when the corresponding regulations do not consider him a taxable person.
CONSUMER PRICE INDEX (CPI): It is an indicator that measures the variations in the cost of the basket of goods and services consumed by a typical family.
INDEMNIFICATION: Payment made by a person or company to compensate or compensate damages caused to another.
INDEXATION: Modality that allows adjusting monetary values over time by using an index. The most widely used indices are devaluation and inflation.
INFLATION: general increase in the price index, and therefore, decrease in the purchasing power of the currency. In an inflationary process, not all prices or all incomes grow in the same proportion, so the structure of relative prices is altered, as well as the distribution of income.
TAX INFRINGEMENT: It is any form of breach of tax obligations typified and sanctioned in accordance with the Tax Code; they can be fault or crime.
INDEMNIFICATION INTEREST: The total or partial payment made out of term arises, without the need for any action by the Tax Administration, the obligation to pay together with the tax, an interest whose rate will be equal to 30% above the effective rate of interest fixed by the Monetary Board.
INCOME: These are the resources obtained by the Government through which it achieves the purchasing power necessary to fulfill its State functions; that is, to produce certain goods and services for public purposes.
CAPITAL INCOME: Those that come from internal and / or external sources: corresponds to the definition of extraordinary income.
CURRENT INCOME: They correspond to the definition of ordinary income.
FISCAL REVENUE: They are all the resources, monetary or in kind, that the State receives through the application of the laws that support the collection of taxes, fees, surcharges, etc.; as well as the income derived from the sale of goods and services, donations and loans.
NATIONAL INCOME: Formed by the total benefits of the factors of production (wages, wages and all other remuneration for work, profits, interest, dividends and rents), obtained by the economy through the production of goods and services in each period, before deducting direct taxes.
PARATRIBUTARY INCOME: Corresponds to the cash benefits required by the State, which due to their characteristics are not considered taxes, but which come from them and have the same economic effects as these.
ORDINARY REVENUES: Correspond to the proceeds from the application of tax laws, concessions and services granted by the State and income for violations of current legal provisions. They are divided into: Tax Revenue and Non-Tax Revenue.
TAX REVENUES: Are those revenues derived from cash benefits that the State, in exercise of its power of empire, requires in order to obtain resources that allow it to fulfill its purposes.
NON-TAX INCOME: These are income in which there is no pre-established obligation on the part of the taxpayer.
EXTRAORDINARY INCOME: Are those resources that the State receives in an unusual way, regardless of the expense that they can finance.
INTIMATION: Notification or declaration of a mandate from the Tax Administration so that the taxpayer complies with a tax obligation or amends erroneous information presented in their declarations or supporting documents.
ITBIS (VAT): Tax imposed on the added value created in each phase of the marketing of a good or service.
M
EMBARGO COMMANDMENT: Instrument by which the Tax Administration orders the retention and / or seizure of the assets of taxpayers who have debts in the coercive phase.
PAYMENT COMMANDMENT: It is the document through the Tax Administration that requires the payment of the debt. This Document begins the compulsory collection phase.
TAXABLE MATTER: That on which the generating event falls.
MARKET: Area where the acts related to the supply and demand of goods and services are carried out.
N
BIRTH OF THE TAX OBLIGATION: The tax obligation arises when the fact provided by law is carried out, as the generator of said obligation.
BUSINESS: Any establishment for the exercise of an activity or trade, a commercial company.
STANDARD: Rule of conduct. Precept, Law.
NOTARY: Official called by law to keep records and attest, according to Law, of contracts and other formal acts.
NOTES TO THE FINANCIAL STATEMENTS: These are notes or comments that complement the accounting information and are considered an integral part of the Financial Statements.
TAX NOTIFICATION: Communication to a taxpayer of an act of the Tax Administration, normally a liquidation or a debt with character of enforceability.
OR
PURPOSE: Also called taxable matter, it is the material support of taxation on which a tax falls.
TAX OBLIGATION: Link between the creditor called the active subject and the debtor, called the taxable person, whose object is the fulfillment of a tax benefit, coercively demandable.
OLIGOPOLIO: High degree of concentration of supply because a small number of sellers monopolizes the entire market.
OLIGOPSONIO: Market in which there are very few buyers.
OMISSION: Tax, taxpayer who has not complied with his formal and substantial tax obligations, of presentation of sworn declarations on the established dates and pay the tax in question.
OPPOSITION: It is an impediment to the transfer of a vehicle, and is carried out through a sheriff.
P
PAYMENT: It is the fulfillment of the provision of the tax due that must be made by the taxpayers.
PAYMENT ON ACCOUNT: Partial payment, which is paid by a tax or tax debt.
EQUITY: Difference between the total assets and liabilities of a company.
LOSS: Any item that can be considered an expense. Excess cost or amortization cost of an asset above its sale price.
FIRST ENTRIES, FIRST EXITS (PEPS): Inventory valuation method to determine the cost of goods sold.
EXCHANGE: Contract by which the parties transmit respectively one thing or right for another thing or right. It is also called barter, but there can be no money in the transaction, because it would mean a sale.
PERSON: Any natural person, company or company, national or foreign.
LEGAL PERSON: It is the one formed by the association of several people in an organism or a society, who are identified with a business name by means of a public instrument that the law recognizes as subjects of law and powers to contract civil and commercial obligations.
NATURAL PERSON: It is that ordinary citizen, holder of rights and obligations, who is identified by his name and surname.
ECONOMIC POLICY: Set of measures that a government gives in the economic field and that are aimed at fulfilling its functions according to its optics and thinking.
FISCAL POLICY: Set of guidelines, thoughts and decisions adopted by the Government of a State to achieve its economic and social objectives through measures linked to public income and spending.
TAX POLICY: Branch of Fiscal Policy that deals with the use of taxes as an instrument of economic policy.
FIXED POINT: Audit technique used in the Tax Administration. It consists of estimating the total income from sales, provision of services and operations of any nature that a taxpayer must have based on the control carried out on several continuous or alternate days of the same month.
TERM: period in which releases must be submitted; fulfill obligations or pay debts.
STATEMENT OF CHARGE: Document by means of which the coercive collection of the liquid and legally required amounts is executed.
PRELATION: Order of preference in the fulfillment of the obligation and its enforceability.
TAX PRESSURE: Percentage that represents the global collection of taxes with respect to the Gross Domestic Product (GDP).
NATIONAL BUDGET: It is an act of government through which the state income and expenses are foreseen and the latter are authorized for a determined future period, which is generally one year.
PRESCRIPTION: Form of extinction of the tax obligation for the course of time, which is three years. Once the statute of limitations has expired, the Tax Administration will not be able to take action on the tax obligation.
DETERMINATION PROCEDURE: Procedure by which the existence and amount of a tax credit is declared, through inspection carried out by officials of the Tax Administration.
GROSS DOMESTIC PRODUCT (GDP): Total value of goods and services produced in the country during a given period. Equivalent to the sum of the gross aggregate values of the various sectors of economic activity.
GROSS DOMESTIC PRODUCT AT CURRENT PRICES: Sum of the gross values added by the various sectors, valued at market or estimate period prices, including indirect taxes net of subsidies.
EXTENSION: Postponement of the payment date of a tax obligation in general by the Tax Administration.
R
REMEDY: Procedural act by which the revocation or total or partial annulment of a judicial sentence or an administrative resolution is requested or access to the authority is requested for it. Its purpose is the correction of basic errors or formal defects. It is granted by law or regulation and the formula who believes to be harmed or wronged by a judicial or administrative resolution.
APPEAL OF CASSATION: It is the one that is exercised before the Supreme Court of Justice, acting as Court of Cassation. This does not examine the merits of the matter in controversy, but merely determines whether the law has been well or poorly applied, whether it lacks a legal basis or is lacking in motivation.
Contentious Appeal: It is that it is raised before the Court of the same name when the appellant understands that a legitimate interest is assisting him, against the Resolution of the Secretary of State for Finance, against administrative acts in violation of the tax law or against any ruling or decision regarding the application of taxes in general.
HIERARCHICAL REMEDY: It is the one that rises after the act appealed in the first degree has been partially or totally confirmed, by virtue of the Reconsideration Resolution, by which the Secretary of Finance, Hierarchical Superior of the Tax Administration is asked, that partially or totally revokes the aforementioned Resolution, which confirmed the act originally contested.
RECONSIDERATION REMEDY: It is the one through which the taxpayers: taxpayers, those responsible and, finally, those obligated, challenge the administrative act, through which they are generally notified of the determination of the evaded taxes, making their objections or objections to said act and asking the Tax Administration to partially or totally modify it, or what is the same, to reconsider its situation, reducing the amount of the adjustments or extinguishing it in its entirety.
RECTIFICATIVE: Form that is presented to correct data from a previously filed Affidavit.
REFUND: Amount of return or a credit operated on account for an amount overcharged; a reduction.
ROYALTIES: Rights that the concessionaire must pay, in cash or in kind, for the exploitation of an industry, mine, deposit or for the concession of a monopoly.
SIMPLIFIED TAX REGIME (RTS): It is a special regime for those retailers, artisans, etc., so that they can easily pay their taxes.
NATIONAL TAXPAYER REGISTRY: It is the identification and classification of taxpayers for tax purposes and its objective is to provide information for compliance with the essential operational functions of the Tax Administration.
AUCTION: Sale at public auction of the seized assets to the taxpayer debtors of the Treasury.
INCOME: All income that constitutes a profit or benefit from a good or activity and all the benefits, profits that are received or accrued and the increases in equity made, not justified by the taxpayer, whatever their nature, origin or denomination. Annual profit or revenue.
GROSS INCOME: Includes all gross income from any source that originates, adjusted taking into account the fiscal cost of goods or services.
ESTIMATED INCOME: It is the Tax administration that sets the indices or parameters to be applied to determine it.
NET INCOME: It is the Gross Income minus the Operating Expenses.
TAXABLE NET INCOME: It is the gross income reduced by deductions, on which the tax will be applied.
REAL INCOME: It is the one presented in the Financial Statements.
PRESUMED INCOME: It is the Law that sets for very particular or specific cases the percentage of income to be taxed by the Tax Administration.
TAX REPARATION: It is the observation or objection made by the Tax Administration to the self-determination of a tax contained in the Sworn Declarations, for differences found in these. Observations made by the tax auditor on the non-compliance and incorrect application of laws, regulations and rules that regulate the actions of the examined entity.
RESOLUTION: Act by which the Tax Administration decides on a situation raised.
RESPONSIBLE: He is the one who without having the character of taxpayer, must fulfill the obligations attributed to him.
DETERMINATIVE RESOLUTION: After notification with the charge hearing and after 20 days have elapsed for the presentation of discharges or the corresponding payment, the determinative resolution is issued within the term of 30 days, computable from the expiration of the trial term. This means the end of the determination stage and it is a summary of the entire administrative process for determining the debt, including the fine, for the taxpayer's conduct.
CIVIL LIABILITY: Is that incurred by an official or employee for the damage caused through an act done in the exercise of their functions.
CRIMINAL LIABILITY: It is the one derived from a criminal act committed by an official or employee.
WITHHOLDING: Equivalent to deductions made from payments of wages and salaries in an amount determined by law or by regulations, which constitute the individual's estimated taxes.
WITHHOLDING OF FUNDS: Conservatory measure, by means of which different banking institutions are notified that the withholding of funds from the debtor taxpayer in favor of the Treasury is proceeded.
COMPLEMENTARY REMUNERATION: Tax on any good, service or benefit provided by an employer to a natural person for his work in a dependency relationship in addition to any remuneration in money, but only if said good, service or benefit contains an individualizable personal element.
TAXPAYER RISK: It is the subjective perception of taxpayers of the Tax Administration's ability to detect noncompliance, collect what is owed and sanction the infraction, making it onerous.
ROYALTY: Amount that a person pays to the owner of a brand, patent, etc., in order to commercially exploit it.
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SALARY: It is the total of the economic perceptions of the workers in money or kind, for the provision of work services for others, they already contribute to effective work or computable rest periods as work.
MINIMUM WAGE: Salary established by law as the minimum basis of remuneration for work performed as a dependent.
NOMINAL SALARY: It includes the amount of cash, as well as the contributions discounted by the companies or employer, to pay the Social Security fees and the value attributed to the part of remuneration that the worker receives in kind.
REAL SALARY: Referred to the purchasing power of wages. It refers to the nominal relationship and the price or cost of living index.
BALANCE IN FAVOR: Amount that gives the taxpayer the right to a refund, because the amount of the tax calculated is less than the total of their deductions and / or payments on account.
SANCTION: Legal consequence for having disobeyed the mandate established in a Law or regulation.
PUBLIC SECTOR: It is made up of Public Administrations, Autonomous Financial Organizations and non-financial public companies.
JUDGMENT: Judicial resolution that is reserved for the decision of the matters established in the laws, particularly to decide on the merits of the matter.
TAX SYSTEM: It implies a coherent logical set of taxes in which each is considered part of a whole, harmonically related.
SUBSIDIES: It is the way the State has to financially support a certain sector, in order to make a good less expensive.
INDIVIDUAL SUCCESSION: It is made up of all those who share an inheritance that has not been distributed, either due to the absence of a will, or because the latter has not recorded the partition of some assets, or because they have decided not to distribute the property or assets subject to the succession or for not having complied with some legal provisions. An undivided succession exists in relation to the property or goods over which the heirs share the property.
ACTIVE SUBJECT OF THE TAX OBLIGATION: He who is responsible for the collection and administration of taxes. Eg Government and Municipalities.
LIABILITIES OF THE TAX OBLIGATION: Natural or legal person required by law to pay the tax, whether as a taxpayer or responsible.
T
TAX IDENTIFICATION CARD: Evidence instrument of all public and private activities that require the use of the National Taxpayer Registry number.
RATE: Table or catalog of prices, rights or taxes paid for the provision of a service.
RATES: They are all those income derived from taxes, whose obligation has as a generating fact the effective or potential provision of an individualized public service in the taxpayer. Eg The Toll.
RATE: Amount or percentage that must be applied to the tax base to determine the tax. Eg the ITBIS rate is 12%.
APPRAISAL: Procedure by which the Appraiser Expert studies the property, analyzes and dictates its qualities and characteristics at a certain time, to establish its fair price. Setting or valuation of the maximum and minimum prices of a good made by a specialist.
TERM: Moment in which a process or a term given by law expires.
PUBLIC TREASURE: It is of public patrimony in charge of the Central Government. The revenue of the public treasury comes from the application of taxes, fees, contributions, property income, fines and other penalties, etc. It is also called treasury or treasury.
TRANSFER OF INDUSTRIALIZED GOODS: The transfer of new or used industrialized goods for consideration or free of charge.
TRIBUTE: Benefit in money or kind that the State in exercise of its powers of empire demands. Taxes are classified:
• Taxes
• Rates
• Special Contributions
TAXATION: Refers to the set of obligations that citizens must perform on their incomes, their properties, merchandise, or services that they provide, for the benefit of the State, for their support and the supply of services, such as defense, transportation, communications, education, health, housing, etc.
OR
LAST ENTRIES, FIRST DEPARTURES (UEPS): Inventory valuation method to determine the short of goods sold.
UNIVERSE OF TAXPAYERS: The totality of people who are obliged to pay some tax, even when they are not registered with the Tax Administration.
PROFIT: generic term applied to the surplus of income, products, or sale price, over the corresponding costs; any pecuniary profit derived from a commercial operation, the practice of a profession, or one or more individual transactions carried out by any person; it is usually preceded by a word or phrase that qualifies it and that means the inclusion of correlative expenses or costs; such as: "gross" or "net" according to and after an indication of the origin and time covered, such as "of the operations of the year".
GROSS PROFIT: Net Sales, less cost of goods sold, before taking into account selling and general expenses, incidental income and deductions from income.
NET INCOME: Revenue remaining from gross receipts, after deducting related costs.
V
SALE: Any act by which goods are transferred or services are provided for consideration (money delivery).
EXPIRATION: Deadline for the payment of a tax obligation or presentation of the declaration of a certain tax.
Z
FREE ZONE: Customs regime that allows goods to be received in a given space or territorial enclave without the payment of import taxes, since they are not in customs territory because they have a principle of extraterritoriality.
