New law restructures the environmental contribution for corporate entities into 12 categories, introduces a two-installment payment mechanism, and restores Income Tax (ISR) deductibility.
The Dominican Republic has enacted Law No. 36-26, amending the General Law on Integrated Management and Co-Processing of Solid Waste (Law 225-20) by introducing a revised environmental contribution framework for corporate entities and other changes to strengthen financing for the country’s waste management system.
The law, promulgated by the Executive Branch on 6 July 2026 and officially notified on 14 July 2026, replaces the previous six-tier contribution structure with a progressive system covering 12 categories. The revised scale requires companies to make contributions based on their gross income to support the public trust “DO Sostenible.”
Under the new rules, corporate entities must calculate and pay the environmental contribution in two equal instalments of 50% through the automated mechanism established by the General Directorate of Internal Taxes (DGII). The legislation also restores the deductibility of these contributions from Income Tax (ISR), reversing a change introduced under Law 98-25
Law 36-26 raises the maximum contribution for the highest-income companies while requiring the State, through the General Budget, to provide funding equivalent to the amount collected by the DGII to reinforce financing for the national waste management system.
The legislation also updates provisions on integrated solid waste management by promoting recycling, supporting the circular economy, and strengthening waste collection, recovery and final disposal mechanisms. It further tightens restrictions on single-use plastics, including a prohibition on the importation of foam (expanded polystyrene) products and other specified foam items unless certified as biodegradable.
The amendment to Law 225-20 faced opposition from several business organisations during its passage through Congress, with critics arguing that the measure advanced under an accelerated legislative process and would increase compliance costs for businesses. Despite those objections, the National Congress approved the legislation and the Executive Branch subsequently promulgated Law 36-26, which will enter into force upon its publication in the Official Gazette.
