Set up a legal entity and tax information for Dominican Republic

This article explains how to set up a legal entity and tax information for a company that is located in Dominican Republic by using the Latin American (LATAM) features that are available in Microsoft Dynamics 365 Finance. A legal entity represents the company, and it contains the tax and legal attributes that are required for the rest of the LATAM configuration.

Prerequisites

Before you begin, open the Feature management workspace, and verify that the LATAM globalization expansion and LATAM globalization expansion – Dominican Republic features are enabled. If they're not enabled, enable them. After you're sure that the feature is enabled, complete the following procedures.

Create a legal entity

To create a legal entity, follow these steps:

1. Go to Organization administration > Organizations > Legal entities and select New.
2. In the address setup, set up the address format for the Dominican Republic.
3. Go to Organization administration > Setup > LATAM > LATAM parameters.
4. On the Concept and notes tab, in the Legal entity section, set a field as Activity.

Set up up tax information

To set up up tax information, follow these steps:

1. Create a document class letter with the letters that you use (B, E, and so on). Use this document class letter in taxpayer and document class configurations.
2. Go to Organization administration > Setup > LATAM > Tax ID type.
3. Select New, and then, in the Overview section, in the Tax ID type field, enter RNC (Registro Nacional de Contribuyentes), which is one of the tax ID types for Dominican Republic.
4. In the Format field, enter XXXXXXXXX for RNC tax ID type . Learn more in Address setup for Latin America.
5. Go to Organization administration > Global address book > Addresses, select the country where the company is set, and then select LATAM to add the RNC tax ID type. Learn more in Address setup for Latin America.
6. Go to Organization administration > Setup > LATAM > Taxpayer type, and select New to create a record that represents organizations.
7. In the Type field, select Persona jurídica. Then add the tax ID type and the document class letter that you created. To learn more, see Taxpayer types for Latin America.
8. Go to Organization administration > Organizations > Legal entities.
9. In the LATAM section, configure the following entity tax and legal information:
   • In the Taxpayer type field, select Persona jurídica to represent an organization.
   • In the Based in country/region field, select Dominican Republic.
   • In the Country document type field, select RNC.
   • Complete the country document number, including the tax ID number of the company.
   • In the Concept and notes section, in the first field, enter the company activity.