Countries › Dominican Republic › Guide › 10. Capital markets and finance › Tax treatment of Dominican capital market operations: Ley 163-21 and the estate regime
Tax treatment of Dominican capital market operations: Ley 163-21 and the estate regime
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Last verified: 2026-10-30 · Status: Changing
Ley 163-21 gave listed share offerings a three year exemption from the capital increase tax and a 15% capital gains rate, both of which ran from August 2021 and have expired absent an extension. Permanent rules remain: no capital gains withholding on sales of listed offered shares, tax only on sale, and no joint liability for buyers.
USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, rounded to the cent.
Key facts
| Capital gains rate on listed offered shares, companies | 27 %Ley 163-21 art. 7 paragraph: Código Tributario rate after the 15% window, as of 2026-10-30 · in force |
|---|---|
| Temporary rate under Ley 163-21 | 15 %Ley 163-21 art. 7, as of 2021-08-10 · repealed |
| Reference selling rate used for USD conversions | 60.9007 DOP per USDBanco Central reference rate, as of 2026-10-29 · in force |
The rule
1. Capital increases by listed companies through public offering of shares were exempt for three years from the law taking effect.Ley 163-21 de Fomento a la Colocación de Valores, art. 5, 2021-08-10 official text · verified 2026-10-30
2. Gains on registered shares in a public offering were taxed at 15% for three years from entry into force, then at the Código Tributario rate.Ley 163-21 de Fomento a la Colocación de Valores, art. 7 and paragraph, 2021-08-10 official text · verified 2026-10-30
3. Amounts received by a seller of registered shares traded as part of a public offering are not subject to capital gains withholding, and the seller reports the gain in the annual return.Ley 163-21 de Fomento a la Colocación de Valores, art. 6, 2021-08-10 official text · verified 2026-10-30
4. Brokers, exchanges and depositories must send operations data to DGII.Ley 163-21 de Fomento a la Colocación de Valores, art. 6 paragraph, 2021-08-10 official text · verified 2026-10-30
5. Capital gains tax arises on sale, never while shares stay with the same holder, whatever their market value, for registered and unregistered shares alike.Ley 163-21 de Fomento a la Colocación de Valores, art. 8 and paragraph, 2021-08-10 official text · verified 2026-10-30
6. Buyers of such shares are not jointly liable for tax debts of the seller or the listed issuer, unless they take part in or control management.Ley 163-21 de Fomento a la Colocación de Valores, art. 9 and paragraph, 2021-08-10 official text · verified 2026-10-30
7. Yields and transactions in the market otherwise follow the ordinary tax regime.Ley 249-17 del Mercado de Valores, art. 329, 2017-12-19 official text · verified 2026-10-30
8. Estate income is not subject to income tax, and the administrator withholds on investor returns at the capital income rate.Ley 249-17 del Mercado de Valores, art. 330 paragraph II, 2017-12-19 official text · verified 2026-10-30
9. Return of assets to beneficiaries at extinction is not subject to capital gains, VAT, transfer tax or the bank payment tax.Ley 249-17 del Mercado de Valores, art. 330 paragraph III, 2017-12-19 official text · verified 2026-10-30
10. Transfers by investors by check or electronic transfer to subscribe or buy registered securities, directly or through collective vehicles, to or from bank or brokerage accounts of the same holder, are outside the tax on checks and transfers of Código Tributario art. 382.Ley 163-21 de Fomento a la Colocación de Valores, art. 12, restating Ley 249-17 art. 331, 2021-08-10 official text · verified 2026-10-30 · changed: Ley 163-21 of 2021 restated art. 331, which earlier exempted electronic transactions with registered securities.
11. Registration of authentic acts for estates and for securities issues is free of the fees for contracts with no stated value.Ley 249-17 del Mercado de Valores, art. 332, 2017-12-19 official text · verified 2026-10-30
Worked example
- A resident company sells listed offered shares for a gain of RD$1,000,000 (US$16,420.17). There is no withholding at sale. Tax is declared in the annual return. At the ordinary 27% company rate on the tax page that is RD$270,000 (US$4,433.45), against RD$150,000 (US$2,463.03) under the former 15% rate. A resident individual uses the progressive scale, up to 25% in 2026.
Step by step
- Confirm that the shares were part of a public offering.
- Keep cost records; the broker gives data to DGII.
- Declare the gain in the annual return.
- Check whether a new incentive law has been enacted before modelling a listing.
Common traps
- The three year windows are counted from entry into force, published in the Gaceta Oficial of 10 August 2021. No extension was found on verification; the regulator was still asking for new incentives in 2026, per press reports.
- The law also opened temporary governance relief, now ended by its own term.
- Check Ley 30-26 and its regulation for changes to tax on income from capital before filing.
- Foreign holders should read the treaty position on share gains.
Sources
Related pages
- taxes/capital-gains
- taxes/bank-payment-tax
- finance/public-offerings-and-listings
- finance/investment-funds-and-asset-managers
- taxes/tax-treaties
- https://theargentinethread.com/guide/
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