President of the Dominican Republic Luis Abinader issued Decree 30-25, which was published in Official Gazette No. 11186 on 25 January 2025.
The decree required foreign digital platforms operating in the Dominican Republic to register with the General Directorate of Internal Revenue (DGII) and charge an 18% ITBIS on digital services provided to local consumers.
ITBIS, a VAT-type tax with a standard rate of 18%, applies to the transfer of industrialized goods and services, including those provided by non-resident providers through digital platforms.
The decree applied to platforms providing online advertising, streaming services, cloud storage, and subscription-based services like Google Ads, Netflix, Spotify, Google Drive, Airbnb and Uber.
However, following public debate and media coverage, the government quickly repealed the decree, leaving foreign digital platforms exempt from the tax. The swift reversal highlights the challenges of taxing the digital economy, and the government is now exploring alternative methods to collect taxes from foreign digital services without affecting consumer access.
