The last in first out (LIFO) method of inventory valuation is established for tax purposes. Other methods may be authorised upon request.
Conformity between book and tax reporting is not required.
Capital gains are added to ordinary taxable income and subject to the CIT rate. Capital gains are defined as the difference between the sale price of an asset and its fiscal cost.
Dividend distributions in cash are subject to a 10% WHT as a sole and definite payment.
Stock dividends are not subject to taxation.
Interest income is considered as part of taxable income; in the case of non-resident, non-domiciled taxpayers, the tax should be paid through WHT.
Royalty income is considered as part of taxable income; in the case of non-resident, non-domiciled taxpayers, the tax should be paid through WHT.
Dominican-resident companies, branches, and PEs are subject to taxation on income from Dominican sources and on income from foreign sources arising from investments and financial gains. Tax determined on income from foreign source is subject to a credit mechanism. Taxes paid in the country where the income is originated can be credited up to the amount of the tax payable in the Dominican Republic on the same income.