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.
Other non-business expenses are not deductible.
Residents have a standard deduction of DOP 416,220 annually, as of 2021, which is adjusted by the annual inflation rates. Christmas bonuses, severance, and pre-notice payments are tax exempt.
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.