TAX ON ASSETS A tax on assets is applied to all assets that are registered in the general balance of the taxpayer, not ad- justed by inflation, after applying the deductions for depreciation, amortization, provision for unrecoverable accounts receivable, investments in stock in other companies, lots located in rural areas, agricultural real estate, and taxes that have been paid in advance. Financial intermediary entities, intermediaries in the securities exchange market, investment funds admin- istrators, and title companies, as well as electric generation, transmission and distribution enterprises, pay this tax on the basis of the total of their fixed assets, free from depreciation, such as they appear in their general balance.
TAX ON THE INCORPORATION OF COMPANIES The incorporation of limited partnerships, corporations, and limited liability companies is subject to the pay- ment of a tax of 1% of the authorized corporate capital, with a minimum tax of RD$1,000.00.
SELECTIVE TAX ON CONSUMPTION The Selective Tax on Consumption applies to the transfer of some goods of national production at the manu- facturing level, as well as their importation, and the rendering of telecommunications, insurance services, and the payment by check or wire transfers. Persons, companies, or enterprises, both national and foreign, that produce or manufacture these goods in the last stage of the production process are obliged to pay this tax, in addition to importers of goods, on their own account or for third parties, and services providers. Certain insurance companies based on the scope of services they provide are subject to this tax, as well as, electrical appliances, luxury goods and vehicles.
TAX ON THE TRANSFER OF REAL ESTATE Real estate transfers are subject to a 3% tax over the higher value, if any, that results between the amount stated in the purchase agreement and the value assigned by the DGII to the property subject to the transfer. This tax also applies to the transfer of real estate property purchased through loans granted by financial inter- mediaries so long as the purchased house or lot destined with said loan has a value of over RD$1,000,000.00, amount adjusted by inflation.