Tax & Accounting Services for American Expats Living in the Dominican Republic
Welcome
Welcome to Caribbean CPA, your own personal American CPA Firm right here in the Dominican Republic. Our firm was created to serve the Tax, Accounting and International Financial Reporting obligations of U.S. Expats Living in the Dominican Republic.
We know how difficult it is to start a new life overseas. You are learning a new language; getting used to a new culture and even a new way of life; at the same time that you are striving to integrate to your new community. If you have family, your loved ones are also going through this transition. On top of that, you just discovered that your new tax and compliance obligations are way more different than expected. Precisely now, when you no longer have the advice of your old trusted accounting firm; they remained back home.
That is the kind of situations Caribbean CPA was specifically designed to solve. We believe that something as mundane as taxes and international financial reporting obligations have no right to interfere with your new dream life in the Dominican Republic. Let us take away the complexities of tax and international financial reporting so you can start enjoying everything your new life has to offer. Please contact us for a free consultation.
“There is only one good, knowledge, and one evil, ignorance.”
― Socrates
Tax Savings for You
As a U.S. Expat living in the Dominican Republic, you are subject to new tax and financial reporting obligations. However, you are also entitled to special tax benefits, not available to you before. Some of the tax privileges you could be entitled to as a U.S. Expat living in the Dominican Republic are:
- Foreign Earn Income Exclusion
- Foreign Housing Exclusion
- Foreign Housing Deduction
- Foreign Tax Credit
“A good decision is based on knowledge.”
― Plato
Gather either your last year’s tax return or the last return you filed. Please remember, you need your U.S. Income Tax Return (filed with the IRS) and any other state or local income tax return filed in the past. Each taxpayer’s situation is unique. Depending on your particular financial situation, you may have state and local tax filing requirements in the U.S. in addition to your federal tax filing obligations. Please gather all tax return documentation.
If you have bank accounts in the Dominican Republic (or elsewhere to), investment accounts or other financial assets outside the U.S. (like a foreign pension for example), you may have the obligation to file international financial reports with the U.S. Treasury Dept. Some of these obligations are independent of tax filing requirements; which means, you may have an international financial reporting obligation even if you do not have to pay U.S. Federal Income Taxes. If you filed international financial reports in the past, please gather this documentation as well.
If you travel between the Dominican Republic and the U.S. or other overseas locations during the previous year, you will need this information to prepare your tax returns. Your travel dates are used to determine your residency status, as well as to calculate your tax information. If you did not keep a travel log, gather as much information as possible to recreate your travel calendar. Information such as hotel reservations, stamps on your passport, air fare tickets and credit card reports can be used to obtain this data.
Gather all income related documents you receive related to last year. These documents usually arrive early in the year. If you work as an employee for a U.S. employer, you will receive a form W-2. If you work as an independent contractor for a U.S. based entity, you will receive a form 1099-MISC. If you have investments, you will receive forms 1099-INT, 1099-DIV and 1099-B from investment accounts in the U.S.
Depending on the nature of the expense, you may or may not receive a document serving as evidence for the amounts you paid. If you have a U.S. mortgage, you will receive a form 1098. Are you paying student loans? If you are, you will receive a form named 1098-E. Did you make charitable donations? If you did, you may have to request proof of the donation to the charitable organization. Other expenses may not have a specific form attached, like medical expenses. In this case, you will have to keep copies of receipts or other evidence as proof of these payments.
“The whole is more than the sum of its parts.”
― Aristotle
Our Clients
The typical U.S. Expats living in the Dominican Republic include Freelancers, Entrepreneurs and Startups. Although they come from very different backgrounds, all of them have decided to relocate to the Dominican Republic to take advantage of the many benefits this Caribbean island has to offer. Some of the advantages include:
- The eighth largest economy in all Latin America and the largest in the Caribbean and Central America
- Good by-lateral relations with the U.S.
- The Dominican Republic-Central America Free Trade Agreement with the U.S.
- The American Chamber of Commerce of the Dominican Republic
- Close proximity to the U.S. Territory of Puerto Rico
- Close proximity to the U.S. Territory of Virgin Islands
- Close proximity to the British Overseas Territory of Virgin Islands
- Close proximity to the British Overseas Territory of Cayman Islands
Let’s Get Started
We know how challenging it is to start a new as a U.S. Expat in the Dominican Republic. You ask yourself: “who can prepare my U.S. taxes this year and explain them to me in English?” I now live in the Dominican Republic, my trusted adviser remained back home, and they don’t do taxes for persons living in the Dominican Republic. That is where Caribbean CPA comes in, because being away from home does not mean you have to compromise on the quality of your financial advice. Please contact us for a free consultation.
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