The Dominican Republic had opened a consultation on a draft Regulation updating the Simplified Taxation Regime (RST), covering Income Tax (ISR) and ITBIS and introducing revised eligibility, tax rates and compliance rules. The consultation opened on 21 September and was due to close on 25 November 2026.
The Dominican Republic had opened a public consultation on a draft Regulation governing the Simplified Taxation Regime (RST), with the consultation beginning on 21 September 2026. The proposed regulation would update the regime for small taxpayers and incorporate amendments introduced to the Tax Code by Law No. 30-26.
Scope of the RST
The draft would cover both Income Tax (ISR) and ITBIS and would establish two modalities: RST by Income and RST by Purchases.
RST by Income would apply to individuals earning professional, independent trade or employment income, legal entities engaged in services or the production of goods, and agricultural producers. The annual income threshold would be DOP 30 million for legal entities and DOP 15 million for individuals and agricultural taxpayers.
RST by Purchases would apply to individuals or legal entities exclusively engaged in trading goods, with annual purchases and imports of up to DOP 60 million. The thresholds would be adjusted annually for inflation by the DGII.
Entry and compliance requirements
The draft would set requirements for entering and remaining in the RST, including registration and updating in the RNC, a 31 December fiscal year-end and compliance with tax obligations.
Certain activities would be excluded, including real estate construction, insurance, telecommunications, finance, pensions, the securities market, manufacturing of certain products subject to selective taxes, regular vehicle sales and activities involving precious metals.
The proposal would also impose corporate restrictions and exclude cases involving the concealment or simulation of income, purchases or imports.
RST taxpayers would be exempt from certain obligations under the ordinary regime, including Income Tax advance payments, the Asset Tax and certain information returns. They would nevertheless be required to issue tax receipts, request invoices from suppliers, identify themselves as RST taxpayers, register for electronic invoicing and retain supporting documentation.
Where taxpayers under the ordinary regime, state institutions or non-profit entities purchase goods or services from RST taxpayers, the draft would require withholding of 100% of the ITBIS invoiced, subject to applicable exceptions.
Applications to enter the regime would be submitted to the DGII, which would have 15 business days to make a decision.
Tax rates
For legal entities under RST by Income, the draft would establish a progressive Effective Tax Rate (TET) combining ISR and ITBIS. The rates would be 7%, 9% on the excess in the second bracket and 11% on the excess in the highest bracket, according to the prescribed income levels.
For individuals, ISR would be calculated based on taxable net income. Taxpayers would be permitted to deduct 40% of income from economic or professional activities, in addition to the personal exemption and allowable educational expenses.
A Basic RST would also cover small-scale economic activities with annual income below DOP 1 million, applying a fixed TET of 3% on gross income. Eligible activities would include trades, artisanal activities, small services and basic retail trade.
Agricultural taxpayers would be subject to a TET of 1.5% on annual gross income.
Under RST by Purchases, tax would be calculated using a TET of 4.5% applied to estimated annual income, based on the relevant purchases, imports and commercialisation margins.
Filing and exclusion
Tax returns would be filed annually. Individuals, agricultural taxpayers and Basic RST taxpayers would pay in two instalments, while legal entities and RST by Purchases taxpayers would make four quarterly payments.
The DGII could exclude taxpayers ex officio for non-compliance, obstruction of tax audits, loss of eligibility, exceeding applicable thresholds or detected irregularities. Taxpayers would be able to request a review and retain the administrative or judicial remedies available under the law.
The proposed regulation would apply from fiscal year 2026 and provide for the automatic migration of taxpayers already covered by the previous regime. It would also repeal and replace Decree No. 265-19.
The public consultation would remain open until 25 November 2026, with questions and comments to be submitted through the “submit comments” form accompanying the publication.
