The obligation to retain part of the tax on the transfer of movable property and provision of services now extends to companies whose annual purchases exceed $5 million.

Since February last year, 163 companies have had to withhold a percentage of ITBMS from their suppliers for purchases of goods and services, and then send it to the tax authorities along with their monthly tax return.

Prensa.com explains that now,   “… through executive decree 128, retainers are defined as companies that make annual purchases of $5 million or more. A subsequent resolution by the DGI designated 175 new companies as retention agents as of August 1 of this year.”

“… By extending the companies that retain and remit the ITBMS to the treasury, the DGI hopes to increase its collection capacity. Publio Cortés, general director of Revenue, said that not only does retention result in more collection but the most important thing is that with the mechanisms we have incorporated a large number of taxpayers who previously were under the radar.”

Source: Prensa.com