Dominican Republic
Overview
Last reviewed - 29 November 2024Explored and claimed by Christopher Columbus on his first voyage in 1492, the island of Hispaniola became a springboard for Spanish conquest of the Caribbean and the American mainland. The island sought to gain its own independence in 1821 and finally attained independence as the Dominican Republic in 1844, thanks to the founding fathers through the organisation of La Trinitaria. In 1861, the Dominicans voluntarily returned to the Spanish Empire; however, they restored their independence two years later, in 1863.
The Dominican Republic is divided into 31 provinces and one National District. Its capital is Santo Domingo. The official language of the Dominican Republic is Spanish, and the currency is the Dominican peso (DOP).
The Dominican Republic has long been viewed primarily as an exporter of sugar, coffee, and tobacco; however, in recent years, the service sector has overtaken agriculture as the economy's largest employer, due to growth in tourism and free trade zones. The mining sector has also started a sustained period of growth. The economy is dependent upon the United States, which is the destination for nearly 50% of its exports. The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in March 2007, boosting investment and exports, and reducing losses to the Asian garment industry.
Quick rates and dates
Corporate income tax (CIT) rates | |
---|---|
Headline CIT rate (%) |
27 |
Corporate income tax (CIT) due dates | |
---|---|
CIT return due date |
120 days after year-end. |
CIT final payment due date |
120 days after year-end. |
CIT estimated payment due dates |
On the 15th day of every month. |
Personal income tax (PIT) rates | |
---|---|
Headline PIT rate (%) |
25 |
Personal income tax (PIT) due dates | |
---|---|
PIT return due date |
31 March |
PIT final payment due date |
31 March |
PIT estimated payment due dates |
Monthly for employment income. |
Value-added tax (VAT) rates | |
---|---|
Standard VAT rate (%) |
18 |
Withholding tax (WHT) rates | |
---|---|
WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 10 / NA / NA; Non-resident: 10 / 10 / 27 |
Capital gains tax (CGT) rates | |
---|---|
Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
Headline individual capital gains tax rate (%) |
Capital gains are subject to the normal PIT rate. |
Net wealth/worth tax rates | |
---|---|
Headline net wealth/worth tax rate (%) |
NA |
Inheritance and gift tax rates | |
---|---|
Headline inheritance tax rate (%) |
3 |
Headline gift tax rate (%) |
27 |