Dominican Republic

Corporate - Other taxes

Last reviewed - 04 December 2023

Value-added tax (VAT)

Tax on the Transfer of Industrialised Goods and Services (ITBIS) is a VAT applied to industrialised goods (movable) and services at a rate of 18%, with exemptions established by law to certain goods and services.

Exempt goods include a wide variety of goods, among which are basic products (eggs, milk, grains, live animals, frozen meats), seeds for planting, fruits and vegetables, medicine, insecticide and pesticides, books/magazines, educational material, wheelchairs, and prosthesis.

Exempt services include educational, health, financial (including insurance), pensions, ground transportation of people and cargo, electricity, water and waste pick-up, housing rental and personal care, and exported services.

A 0% rate applies to exports, including sales to FTZs.

Tax on gross sales made by FTZs to local market

A 3.5% tax was created on the gross sales of goods and services made by companies in Dominican FTZs to individuals and legal entities in the local market.

Customs duties

Customs duties are assessed at various rates depending on the nature of the goods and their country of origin. Free trade agreements exist (e.g. the Central America-Dominican Republic-US Free Trade Agreement [DR-CAFTA]) that decrease the customs duty rates for goods imported from the member countries.

Selective consumption taxes (Impuesto Selectivo al Consumo or ISCs)

ISC is applied to the acquisition or import of certain goods and services.

There are ISCs that vary based on the product, which range from:

  • 10% on the transfer of alcoholic beverages, applied on the retail price. Imports and transfers made by local manufacturers are accountable for this tax.
  • 50% on the transfer of 20 units of tobacco products and 25% on the transfer of 10 units of tobacco products, applied on the retail price. Imports and transfers by local manufacturers are accountable for this tax.
  • 10% on telecommunications services.
  • 16% on insurance services.
  • 0.0015% on the value of checks or wire transfers made through financial entities (this tax does not apply to cash withdrawals or credit card use).

Real Property Transfer Tax

The Real Property Transfer Tax is assessed at a basic rate of 3% on any transfer of ownership of real estate.

Stamp taxes

There are no stamp taxes in the Dominican Republic.

Payroll taxes

In addition to the social security contributions (see below), a 1% contribution from the payroll amount shall be made to the Governmental Training Institution (INFOTEP) on a monthly basis. This is paid solely by the employer (not subject to withholding). In addition, a 0.5% contribution shall be paid to INFOTEP, and the employer shall withhold said 0.5% contribution from employees’ bonus (not salary).

Employers must share 10% of their net profits with their employees. The Dominican Labor Code, however, allows employers to cap the amount distributed as follows: an employee with less than three years on the job will receive a maximum of 45 days’ salary; an employee with three years or more will receive a maximum of 60 days’ salary.

Social security contributions


Employers contribute 7.10% of salaries and withhold 2.87% from employees’ salaries for pensions. The quotable salaries for contribution are 20 minimum wages.

Family healthcare

Employers contribute 7.09% of salaries and withhold 3.04% from employees’ salaries for family healthcare. The quotable salaries for contribution are ten minimum wages.

Labour risks insurance

Employers contribute 1.2% of salaries for labour risks insurance. The quotable salaries for contribution are four minimum wages.