Dominican Republic

Personal deductions

Education expenses

Individuals (who are income taxpayers) may deduct educational expenses incurred by them and their direct dependant non-wage earners from gross income subject to tax. Educational expenses include those incurred in connection with elementary, medium, technical, and university education. The deduction is allowed only up to 10% of gross taxable income with a cap of 30% of the exempt minimum (up to 50% of the exempt minimum for disability or neurodevelopmental disorders).

Other non-business expenses are not deductible.

Standard deductions

Residents have a standard deduction of DOP 416,220 annually since 2021. Christmas bonuses, severance, and pre-notice payments are tax exempt. 

Remark: For FY2027 the exemption will be raised to DOP 480,000.00 adjusted by inflation annually.

Business deductions

Individuals performing commercial or industrial activities can deduct expenses incurred in the production of business activities, whether or not they keep organised accounting records. Otherwise, they have the option to deduct 40% on the gross revenue as total deductions to get the net taxable income. In these cases, the standard/fixed deduction is not applicable.