Santo Domingo.- Airbnb executives show readiness to pay taxes in the Dominican Republic, but suggest tax system upgrades. Carlos Muñoz, Airbnb’s top official for Public Policy and Government Affairs, calls for tech-optimized integration between Airbnb and the tax collection system. This is to address worries about potential audits by the General Directorate of Internal Taxes.
Airbnb has been negotiating with the government to regulate its host community since 2021. The company calls for clear rules that will assist informal operators to integrate into the formal banking system. The tax reform advocated by Muñoz should include specific provisions for digital platforms, considering the present legal framework lacks proper regulation for such entities.
Airbnb is concerned about the proposal by the Dominican Republic Hotel and Tourism Association (Asonahores) suggesting that digital platforms act as tax withholding agents. Muñoz warns that this could disadvantage Airbnb compared to competitors not handling payments. He discourages lengthy regulatory discussions like those in Costa Rica, that delayed tax compliance for years. He encourages the use of successful tax collection technologies from the European Union.
Muñoz admits that short-term rental platforms like Airbnb enhance the Dominican tourism sector. They democratize access, benefits and generate income for remote communities via rental activities.