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Santo Domingo.- A proposed tax on interest earned by individual savings accounts doesn’t jibe with the Banks Association (ABC), which warns that if implemented, would be more harm than good.

Moreover, penalizing savings with 10% strengthens the informal market and spurs the flight of capital, as would lead savers to convert their pesos into dollars.

On its website, the Banks Association states that while a tax on savings would generate revenue, they’ll be too small and insignificant to offset the costs associated with its implementation.

For Latin American Banks Federation (Felaban) president Oscar Rivera, a tax on savings would be a mortal sin. It’s absurd to penalize those who save.”

Quoted by diariolibre.com, ABC president Jose Manuel Lopez said the sector is subject to a high tax and quasi tax burden of over 60% of its annual profits and cites several taxes banks paid including 1% on productive financial assets.

For tax expert Edgar Barnichta Geara, “the government’s announced tax reform proposal placing levies on the interests of savers is creating unfair competition that will lead to discrimination where people will move their capital.”

According to the government’s tax reform draft, interest received by individuals from financial institutions regulated by the Monetary Authority, and the National Housing Bank and Savings and Loan Associations will be taxed at a rate of ten per percent (10%).

Barnichta said starting with a 10 percent tax on interest is very high, and the ideal would’ve been a selective consumption tax of 5% or 6%, but not like it’s being considered now, with the tax reform proposal.

He added that taxing perceived interests, but leaving the Central Bank exempt means that people will move their capital from commercial banks to the Central Bank, which offers the highest interest.

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COMMENTS
29 comment(s)
Written by: elBuscoon, 11 Oct 2012 8:52 AM
From: Cuba, La Havana, Que Viva La Revolucion
How FREAKING STUPID IS THIS?

10% tax on interest. Oh yea...

Every smart person is going to pull their money out of savings and put it else where.

DANILO you suck big time dude. I have lost my faith in you.
Written by: josean, 11 Oct 2012 8:59 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


No that sucking sound you here is from Cayman Banks!

Written by: dreadlocks, 11 Oct 2012 9:06 AM
From: United States
now that is cute. i put my money in a savings account, and get the measly interest taxed at a 10% rate. that will encourage me to save. sure.
Written by: Escott, 11 Oct 2012 12:27 PM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
Someone has to pay for the Polititians stealing. Cuba sucks btw.
Written by: Danilo, 11 Oct 2012 12:49 PM
From: Dominican Republic, SDQ --- VIGILADOR.COM (Beta) - Vigilando nuestra Quisqueya
This is done everywhere, interest is income and income is normally taxed. The main contributors to this tax will be those with multi-million peso accounts.
Written by: josean, 11 Oct 2012 1:08 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


Says the PLD PURPLE Kool-Aid Drinker!


Written by: josean, 11 Oct 2012 1:14 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


These new TAXES are just an effort to COVER UP the Disastrous Spending with No Rhyme or Reason that has occurred in the last 8 years, other than to make the PLD elite in in the Political Committee Millionaires in US dollars, and to BUY the 2008, 2010 and 2012 elections!




Written by: JHCL2016, 11 Oct 2012 1:41 PM
From: United States, EN PUNTA CANA: Jose H Con Leonel 2016!

Surprised that even some non-Dominicans are commenting like they never heard of taxing the dividends in your bank accounts. If you are an US or EU citizen, you must pay no matter where you money earned the interests; even if you take it to the Cayman Islands. The rules were changed, all banks which manage money of US citizens, must report back their earnings to the IRS.

Go ask Romney why he was found out about his Cayman Islands hidden stash, just like deadlocks was unmasked about his profesional babbling job.

Now, a 10% on your dividends is very low, here is taxed on your income bracket, on average, the rate would be around 27%.

Mas pa'lante y manos a la obra que ya estamos trabajando

8-)

Danilo es Presidente, Leonel 2016!
JHCL2016@yahoo.com / PLD.NEPA@gmail.com
Written by: Danilo, 11 Oct 2012 2:44 PM
From: Dominican Republic, SDQ --- VIGILADOR.COM (Beta) - Vigilando nuestra Quisqueya
Very few poor people have savings account, so I approve this tax! It taxes those who have!
Written by: JHCL2016, 11 Oct 2012 3:19 PM
From: United States, EN PUNTA CANA: Jose H Con Leonel 2016!
Josean,

PLD PURPLE Kool-Aid Drinker! --> facebook.com/photo.php?fbid=489245587766326&set=a.182282221795999.42906.179774758713412&type=1&theater

Mas pa'lante y manos a la obra que ya estamos trabajando

8-)

Danilo es Presidente, Leonel 2016!
JHCL2016@yahoo.com / PLD.NEPA@gmail.com
Written by: bernies, 11 Oct 2012 3:27 PM
From: Dominican Republic, Juan Dolio
As long as they don't taxe my saving directly I am ok with it, now if they are just taxing me on what the bank pay me on the interest I earn then is fine with me.
Written by: josean, 11 Oct 2012 3:57 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


My apologies to my non-Spanish reading friends but too much would be lost in the translation and it would not do justice to the frustrated writer.

I suggest you have some read it to you and translate.



"I am selling it all and I'm going because this is F…Up, says desperate professional"


An open letter to Saint Danilo and IRS Atabey!


“abogado anuncia que se marcha del país”

“Lo vendo todo y me voy porque esto se jodió!!", dice profesional desesperado

Lo que es peor y lo que quizás no ha analizado ningún “bendito” economista, es que quieren aumentar los impuestos a la VIVIENDA o los inmuebles que usted, luego de mucho sacrificio ha adquirido, y luego de haber pagado todos los malditos impuestos


continued:

Written by: josean, 11 Oct 2012 3:58 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

SANTO DOMINGO, República Dominicana.- El abogado Jorge Lora Castillo anunció que venderá sus bienes particulares, cerrará su oficina de abogados, reunirá a sus socios y les dirá que esto se jodió. La decisión es que se marcha del país hastiado por los políticos, a los que considera una vaina.

En un texto remitido a Acento, Lora Castillo dice que “le aviso a DANILO que lo voy a vender todo, lo voy a cambiar en DOLARES y me voy de este país; lo primero es que voy a reunir a todos los asociados de la oficina, y les voy a avisar que esto se JODIO”.

Calificó como crítica la situación del país, en especial el proyecto de reforma tributaria del presidente Danilo Medina.

continued:

Written by: josean, 11 Oct 2012 3:59 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Le aviso, además, que nadie va a comprar nada, que nadie va a comprar un carro ni pequeño, para pagar el uno por ciento de su valor; entiéndase que un Toyota Corolla de RD$450,000.00 (un carro utilitario) pagará de placa RD$4,500.00, si es nuevo, cerca de RD$7,000.00; un apartamento ni se diga; ya que después que uno se rompe el lomo, las piernas, el pecho y la espalda, paga lo que tiene que pagar, entonces, de lo que le queda, para garantía de tus hijos, y tu vejez, riiiiaaaan más impuestos. Aparte del criminal diez y ocho por ciento de ITEBIS”.

A continuación el texto del abogado Jorge Lora Castillo, remitido a Acento para su publicación:

continued:

Written by: josean, 11 Oct 2012 4:01 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

¡Qué maldita vaina!

Siempre he tratado de ser feliz, ha sido un norte en mi vida, y lo he sido por decisión, por voluntad, por elección; como chicharrón (todavía puedo), me bebo mis traguitos, salgo a bailar a veces, y trabajo, todo lo que puedo, y todos los expedientes que me llegan, (menos violaciones a menores y drogas). Ah se me olvidó decir que soy abogado.

Además de tratar de ser feliz, trato de ahorrar, por lo de los hijos, y el futuro, ya que, en este país de PENSIONES EXTRAORDINARIAS, aquellos que trabajamos “por nuestra cuenta” no tenemos nunca la suerte de que este premio nos toque; en fin, trato de tener con que vivir, tengo varias propiedades, que he comprado con financiamientos y he pagado con mucho sacrificio; un vehiculo modesto, nada ostentoso, y trato de pagar todos mis impuestos;

continued:

Written by: josean, 11 Oct 2012 4:03 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

he llegado al colmo en este sentido, de pedir comprobante fiscal por todo; pago luz, (muy cara por cierto), mantenimiento del edificio donde habito, agua, tengo empleados y en definitiva, soy un “ente productivo” para la patria, podría decir que de mi bufete de abogados viven aproximadamente veinte personas. Soy si quiere un micro empresario.

No obstante, me sentía aburrido, molesto, le hablé mal a uno de mis hijos que me pidió “unas alitas sumergidas” y le contesté groseramente, que si en la casa no había comida; analizando esta actitud y este desánimo que tenia, no le encontraba explicación, hasta que en el día de ayer oí una discusión respecto de una declaración del Presidente de la Sociedad Dominicana de Siquiatría, que refería, las secuelas que podía tener en la psiquis del dominicano, la cacareada reforma fiscal de LEONEL y que ha asumido estoicamente el “pobre” Temístocles, a quien DANILO Lo ha puesto “apota” a ser el vocero de este desmadre,

continued:

Written by: josean, 11 Oct 2012 4:04 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

y dije, ay mi madre, eh ahí la razon de este desanimo, de este sin vivir.

Me di cuenta, que, en efecto, me encontraba aburrido, incómodo, desanimado y molesto desde el día nefasto en que, estos santos barones, incluyendo al CARDENALISIMO LOPEZ RODRIGUEZ, dijeron que teníamos que apretarnos los pantalones. Que conducta.

Quizás mi incomodidad para no llamarla de otra manera, es como consecuencia, de que los pantalones los tengo apretados hace mucho y la correa no tiene mas hoyitos que hacerle, porque me va a dar la vuelta; porque al contrario de IVANHOE, TEMISTOCLES, LEONEL, MARGARITA, VALDEZ ALBIZU, BENGOA, y demás “próceres” yo tengo que pagar el colegio de mis hijos, tengo que pagar el gasoil de la planta, tengo de pagar inversor, tengo que tener pozo tubular para tener agua, tengo que pagar el combustible de los vehículos que hacen la mensajería, tengo que pagar salarios, y sobre todo tengo que pagar impuestos, seguro privado porque el publico no sirve;

continued:

Written by: josean, 11 Oct 2012 4:06 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

y ahora, sin yo tener la culpa de ningún MALDITO DEFICIT, luego de que la economía estaba BLINDADA, ahora resulta que el blindaje era de mierda.

Lo que es peor y lo que quizás no ha analizado ningún “bendito” economista, es que quieren aumentar los impuestos a la VIVIENDA o los inmuebles que usted, luego de mucho sacrificio ha adquirido, y luego de haber pagado todos los malditos impuestos; quieren ponerle impuestos a lo que usted AHORRA, y le queda luego de pagar los malditos impuestos; y al vehiculo en que usted anda también.

Le aviso a DANILO que lo voy a vender todo, lo voy a cambiar en DOLARES y me voy de este país; lo primero es que voy a reunir a todos los asociados de la oficina, y les voy a avisar que esto se JODIO; que busquen oficio en otro sitio; porque ya la luz no la puedo pagar, y la van a aumentar aun mas por la oficina, que paga mas impuestos que DANILO Y MARGARITA Juntos, que LEONEL ni se diga, van a aumentar el papel, el gasoil, la gasolina, y hasta el aire.
Written by: josean, 11 Oct 2012 4:07 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Pueden decir, que no, que la tarjeta Solidaridad, que el pueblo desposeído, que los mas necesitados; estoy muy de acuerdo; pero como dice el viejo dicho “No me des pescado, enséñame a pescar. “ y como dicen aquí; “Lambiendo nadie se llena”; al pueblo y eso ha sido demostrado por experiencia, hay que darle oportunidades de superación, no una tarjetita con trescientos y quinientos pesos, con gas o sin gas, con luz o sin luz, para radiarle el deseo de superación y conformarse con estas dadivas, que sirven mas para negocio, que para solución.

continued:

Written by: josean, 11 Oct 2012 4:08 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016

Le aviso además que nadie va a comprar nada, que nadie va a comprar un carro ni pequeño, para pagar el uno por ciento de su valor; entiéndase que un Toyota Corolla de RD$450,000.00 (un carro utilitario) pagará de placa RD$4,500.00, si es nuevo, cerca de RD$7,000.00; un apartamento ni se diga; ya que después que uno se rompe el lomo, las piernas, el pecho y la espalda, paga lo que tiene que pagar, entonces, de lo que le queda, para garantía de tus hijos, y tu vejez, riiiiaaaan mas impuestos. Aparte del criminal diez y ocho por ciento de ITEBIS.

Solo nos queda decir, con el debido respeto; QUÉ MALDITA VAINA.

Sin respeto alguno por los políticos.

Jorge Lora Castillo

acento.com.do/index.php/news/22431/56/Lo-vendo-todo-y-me-voy-porque-esto-se-jodio-dice-profesional-desesperado.html

Written by: Spimx, 11 Oct 2012 5:54 PM
From: Canada
That's stupid!!!!!

E pa lante que vamo
Written by: RoyStone, 11 Oct 2012 8:34 PM
From: Australia
Danilo, advises
"This is done everywhere, interest is income and income is normally taxed. The main contributors to this tax will be those with multi-million peso accounts."
Absolutely correct.
Income is income. If the country has a progressive income tax system, then it is taxed at the marginal rate. What the government does with the tax revenue is and entirely separate issue.
Written by: Ricardolito, 11 Oct 2012 9:19 PM
From: Dominican Republic, Zona Colonial
I have never heard any one argue before that interest on income or fixed investments is NOT income and should not be taxed ...I can think of no developed country where it is not part of income and is not taxed and in fact in many countries unearned income , as it is often called is taxed at a higher rate than the general level of income tax ...that is to ensure the money keeps being spent and the system keeps growing .
Written by: RoyStone, 11 Oct 2012 9:33 PM
From: Australia
Absolutely, Ricky
But Dominincans have an aversion to paying for anything - better to borrow, steal or fake it.
Written by: josean, 11 Oct 2012 11:56 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016


"better to borrow steal or fake it"

That's Lie-onel and the PLD's Credo!


Written by: RoyStone, 12 Oct 2012 12:17 AM
From: Australia
Danilo, considers

'Very few poor people have savings account, so I approve this tax! It taxes those who have!"

Yes, poor Catholics prefer to invest in their life after death by giving their money to the church. poor Evangelists, on the other hand, invest in miracle cures and financial windfalls in this life, by tithing to their ministry. These businesses are tax exempt, with the Catholic church actually being net tax recipients through the Concordat with the Dominican government.

Only businesses that actually provide real goods or services are subject to tax. Banks and churches don't.

Written by: Vivacuba, 12 Oct 2012 11:49 AM
From: Dominican Republic
Imposed by the IMF to destroy the economy
Written by: RoyStone, 12 Oct 2012 10:05 PM
From: Australia
Vivacuba,
You borrowed the money in the first place. It was not forced on you. Did you think it was a free gift, no strings attached?
Written by: jojosnogood, 14 Oct 2012 8:15 PM
From: Dominican Republic
time to move from the dr to maybe nicaragua,who knows
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