A $10.5 million loan from the Inter-American Development Bank will support a government program to strengthen the Dominican Republic’s internal revenue agency (DGII), the IDB announced today.
The program will modernize the DGII, which is carrying out reforms to increase its capacity to collect taxes. It will also reduce tax compliance costs by introducing new technologies and simplified procedures for small and medium-size taxpayers.
The IDB, which has experience with tax reforms in several Latin American countries, will support a reorganization of the DGII and its human resources management, including the development of career paths and a training system for the agency’s staff.
The program will help increase the DGII’s capacity to conduct audits and invest in modernizing the agency’s technology platform and information management systems and strengthen information technology security.
Additionally, the program will sponsor tax education campaigns for new taxpayers and schoolchildren to raise awareness of the importance of paying taxes to finance better social programs as well as to publicize the DGII’s new technological tools and services.
The loan is for 20 years, with a four-year grace period and a variable interest rate.