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 corporate income tax (CIT) rate is 27%.

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 remitted abroad or paid locally are subject to a withholding tax (WHT) of 10% as a definitive tax payment. Free trade zone (FTZ) entities should also make the 10% withholding on profit remittance (in case of branches) or dividend distribution (subsidiaries).

Local income taxes

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