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).
Territorial
Last verified
The taxes
- Personal income (top)
- 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.
- 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.