Tax
Código Tributario with ITBIS at 18 per cent
Ley 11-92, the Código Tributario, governs income tax, the ITBIS value-added tax at a standard rate of 18 per cent, and the asset tax, all administered by the Dirección General de Impuestos Internos. Companies pay corporate income tax at 27 per cent, and residents are taxed on Dominican-source income with limited taxation of foreign investment income. A minimum tax on assets operates as a floor where declared profits are low.
Key rules
- Jurisdiction — National; DGII, then the Tribunal Superior Administrativo
- Deadline — Corporate income tax return: within 120 days of the financial year end
- Deadline — Individual return: by 31 March for the preceding calendar year
- Deadline — ITBIS return: filed monthly, by the 20th of the following month
Governing law
- Ley 11-92 Código Tributario
- Ley 253-12fiscal reform
- Ley 195-13
- Ley 158-01tourism incentives, CONFOTUR
In practice
The asset tax acts as an alternative minimum charge, so a company reporting persistent losses will still face a liability based on its balance sheet, which is a frequent surprise for capital-intensive start-ups. CONFOTUR incentives for qualifying tourism projects can exempt transfer tax and income tax for a period, and are a standard part of structuring resort development.