Caribbean & Atlantic
Dominican Republic: tax at a glance
The system is largely territorial. Residents pay tax of up to 25%, mainly on income sourced locally, alongside an 18% ITBIS (VAT) and a 27% corporate rate (30% on a transitional basis for large firms).
The taxes
- Personal income (top)
- 25%
- Corporate income
- 27%, rising to 30% for firms with revenue above RD$1bn in tax years 2026–2028.
- Capital gains
- 27%, taxed at the ordinary corporate rate.
- VAT / ITBIS
- 18%
- Dividends (WHT)
- 10%
- Interest (WHT)
- 10%
- Royalties (WHT)
- 27%
- Social security (employee)
- ~5.9%
- Social security (employer)
- ~10.3%
- Wealth tax
- None. The only property-related tax is the IPI.
- Inheritance / estate
- 3% on the estate.
- Property tax
- The IPI applies at roughly 1% on property value above about RD$9.5m.
- Other
- Confotur tourism incentives.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
- Special regime
- New residents get an exemption on foreign-source income, alongside the Confotur regime.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Dominican Republic?
The top marginal personal income tax rate in Dominican Republic is 25%. Rates rise progressively to 25%. Foreign-source income of residents is generally exempt, though foreign financial income becomes taxable from the third year of residence.
What is the corporate tax rate in Dominican Republic?
The headline corporate income tax rate is 27%, rising to 30% for firms with revenue above RD$1bn in tax years 2026–2028..
Does Dominican Republic tax capital gains?
Capital gains for individuals: 27%, taxed at the ordinary corporate rate..