The Dominican Republic has enacted Law 30-26, introducing wide-ranging tax reforms that include a temporary corporate income tax increase for large taxpayers, changes to Individual Tax, ITBIS and ISC, revised tax administration rules, and new sector-specific fiscal measures.
The Dominican Republic has enacted Law 30-26, following its signature by the president on 18 June 2026, introducing a broad package of tax and fiscal measures that amend the Tax Code and related legislation. The reforms include a temporary increase in the corporate income tax rate for large taxpayers, revisions to Income Tax (ISR), Value Added Tax (ITBIS) and Select Consumption Tax (ISC), as well as changes to tax administration, compliance procedures and sector-specific taxes.
Corporate income tax
A temporary 3% surcharge on corporate income tax has been introduced for large taxpayers with annual revenue exceeding DOP 1 billion. As a result, the effective corporate income tax rate for affected companies will increase from 27% to 30% for the 2026, 2027 and 2028 fiscal years.
The standard corporate income tax rate for other legal entities remains 27%.
Value Added Tax (ITBIS) and select consumption Tax (ISC)
The legislation establishes a perception regime for informal importers, applying a 30% surcharge on the ITBIS tax base.
Additional ITBIS exemptions apply to selected goods, including asphalt, fire trucks, ambulances, milk, natural water and pasta.
Under the Select Consumption Tax (ISC), electronic cigarettes become subject to a 55% ad valorem tax. A tax of 0.002 (2.0 per thousand) also applies to checks and electronic transfers.
The tax on life insurance will be reduced in stages, falling to 11% in 2027 and 6% in 2028 before being fully exempt from 2029.
Sector-specific measures
The law introduces revised taxation for gambling operations, with casinos taxed according to the number of gaming tables, while lottery and betting shops will pay fixed annual or monthly fees.
New fuel-related charges include a contribution of USD 174.50 per metric ton on Liquefied Petroleum Gas (LPG) imports and an additional DOP 2.00 per gallon on gasoline and gasoil.
The passenger exit contribution has been increased to USD 30.00, or its equivalent in Dominican pesos.
The legislation also establishes new exemptions for direct-line inheritances of up to DOP 2,000,000 and for donations made to public institutions or social welfare purposes.
Individual income taxÂ
The law introduces a new progressive Individual Tax Scale, effective from 2027, with tax brackets ranging from exempt income of up to DOP 480,000 to a maximum tax liability of DOP 274,800.
Capital gains derived by individuals from the sale of real estate will be subject to a fixed 10% tax rate.
The Simplified Taxation Regime (RST) has been expanded to cover small businesses with annual sales of up to DOP 30 million and independent professionals with annual income of up to DOP 15 million.
New rules also revise the calculation of advance payments (Anticipos), with micro-businesses exempt from making advance payments.
Tax administration and compliance
Taxpayers may select the tax regime that best suits their circumstances but cannot claim benefits under more than one incentive regime for the same economic activity.
The law also allows debtors to request payment agreements with the General Directorate of Internal Taxes (DGII), subject to an initial payment of at least 15% of the outstanding liability. Repayment may be made over up to 12 monthly instalments, or up to 24 months in exceptional cases.
Late payment surcharges are set at 3% per month or part of a month, with the total surcharge capped at 100% of the unpaid tax.
A temporary fiscal amnesty will remain available until 31 December 2026, allowing taxpayers to settle outstanding liabilities by paying the principal amount together with only one year of accumulated interest and surcharges.
