Dominican Republic

The Dominican Republic follows a territorial concept (i.e. resident companies, branches, and permanent establishments [PEs] are generally subject to taxation on Dominican-source income only); consequently, the tax treatment for corporations, partnerships, and limited liability companies is similar in most aspects.

The general corporate income tax (CIT) rate is 27% for companies with income less than one billion Dominican pesos 00/100 (RD$1,000,000,000.00). However, Law 30-26 introduced, on a transitional basis and applicable only for fiscal years 2026, 2027, and 2028, taxpayers with income of one billion Dominican pesos 00/100 (RD$1,000,000,000.00) or more must pay thirty percent (30%) of their taxable income.

In addition, the 1% rate assets tax is considered an alternative minimal income tax, payable when the CIT is lower than the assets tax.

Dividends/profits (subsidiaries/ branches) remitted abroad or paid locally are subject to a withholding tax (WHT) of 10% as a definitive tax payment including entities incorporated under incentive tax laws such as free trade zones, commercial zones, border development, or tourism development.

Local income taxes

In the Dominican Republic, provincial and local government income taxes do not apply.