In a clear and introductory way: having a National Taxpayer Registry, or RNC, with the correct information, is a duty of every citizen and legal entity that operates in the Dominican Republic. Lacking this implies that you will not be able, for example, to issue invoices or pay taxes, essential to formalize or formalize economic activity.
However, despite the fact that micro, small and medium-sized enterprises (MSMEs) make up 98% of the country’s industrial fabric, only 9.3% have this record. This is shown in a report prepared by the National Statistics Office (ONE), which details that 90.7% of the companies in that sector stated that they did not have the code.
formality vs. informality
As the study details, a fundamental aspect that characterizes MSMEs has been their diversity, due to the fact that there are micro-enterprises that respond to self-employment needs, or that are in an informal situation. The latter is due to the lack of access to financing.
The analysis of the ONE indicates that, within the banking instruments, the formally constituted have a higher degree of ownership. Among financial instruments, the savings account is the product with the highest participation with 48.6%, followed by checking accounts (44.2%) and financial certificates (14.3%).
Regarding financing or credit instruments, formal MSMEs show a higher degree of credit card holding with 32.6%, followed by personal loans and lines of credit with 26.4% and 24.1%, respectively.
For their part, informal MSMEs present a similar behavior in terms of savings instruments. The product with the greatest participation is savings accounts (15.8%), followed by checking accounts (5.8%) and financial certificates with only 1.1%.
Within the credit tools, informal companies also have a lower degree of banking use. The personal loan is the main product used, with 10.0%, followed by the informal loan (8.0%).
While the line of credit is the instrument with the lowest degree of tenure (3.7%). The results indicate that there is evidence of significant differences in the degree of banking access between formal and informal MSMEs, except for informal loans. While the former have an average degree of bankarization of 2.21 bank instruments, in the latter the average amounts to 0.54 instruments.
RNC
The National Taxpayer Registry, or RNC, is a nine-digit numerical sequence that contains information on the identification, location, and attributes of the user. It works as a unique and permanent code with which people can carry out official, punctual or regular procedures.
This is an identifier that entrepreneurs need to obtain in order to interact with the administration in their day-to-day activities. It can be used for invoices, purchase orders, or documents that are subject to tax. In addition, it is necessary for any document or statement required by Internal Revenue from the taxpayer.