Dominican Republic

Social security contributions

Pensions

Employers contribute 7.10% of salaries and withhold 2.87% from employees’ salaries for pensions. The quotable salaries for contribution are 20 minimum wages. This contribution is mandatory. In cases where the employee already contributes in their home country, one should obtain a certification of contribution from the Social Security Ministry in their home country in order to avoid double contribution. Such document should be filed by the employer, as the withholding agent of the employee, to the Dominican Social Security Ministry in order to justify the employee’s non-contribution.

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. This contribution is mandatory and has no exceptions.

Labour risks insurance

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

Technical education tax

A payroll-based contribution is imposed on employees and employers toward the financing of a program for the technical instruction and training of workers. The contribution of employers is 1% of total monthly payroll; for employees, it is 0.5% of bonuses received.

Consumption taxes

Tax on the Transfer of Industrialised Goods and Services (ITBIS)

ITBIS is a value-added tax (VAT) applied to industrialised goods (movable) and services at a rate of 18%, with exemptions established by law to certain goods and services.

See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in the Dominican Republic.

Inheritance and gift taxes

Inheritance tax for individuals is 3%, which is charged to the successors and beneficiaries.

Gifts made to physical persons are subject to 27% withholding tax (WHT).