The Dominican Republic's Directorate General of Internal Revenue (DGII) published a consultation letter on 13 January 2023 in response to a question regarding the treatment of interest payments on a loan with a related party in Panama. The letter clarifies that, as long as payments are made for interest generated on loans obtained abroad, tax must be withheld at a rate of 10% as a single and final payment in accordance with Article 306 of the Tax Code. Further, the letter clarifies that the interest payments may only be deductible for tax purposes if the tax is withheld and effectively...