Countries › Dominican Republic › Guide › 16. What is normal abroad but not here › The 1% asset tax works as a minimum tax

The 1% asset tax works as a minimum tax

Last verified: 2026-10-30 · Status: Stable

Abroad a loss year usually means no income tax; here companies pay 1% a year on balance sheet assets when income tax is lower. Income tax is credited against it, so the tax bites in start up, loss or thin margin years. Banks, power companies and some others pay on fixed assets only, and agricultural companies are now exempt.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Asset tax rate	1 %Ley 11-92 art. 404, as of 2026-10-30 · in force
Minimum tax mechanism	Asset tax, with income tax as a credit Ley 11-92 art. 407, as of 2026-10-30 · in force

The rule

1. A yearly tax applies to the assets of legal persons and individuals with sole proprietorships, at 1% of total taxable assets.
Cost to do it: 1% of taxable assets, less income tax for the year.
Example: Assets RD$100,000,000: RD$1,000,000. / Assets US$1,642,017.25: US$16,420.17.Ley 11-92, Código Tributario, Title V added by Ley 557-05, art. 401 and art. 404, 2005-12-13 official text · verified 2026-10-30

2. DGII states the rate of 1% of taxable assets on its income tax page.DGII, Impuesto sobre la Renta and Impuesto sobre los Activos page, Tasa del impuesto, 2026-10-30 official text · verified 2026-10-30

3. Banks, pension fund managers and funds, securities intermediaries, fund managers, securitizers and power generation, transmission and distribution companies pay on net fixed assets.Ley 11-92, Código Tributario, art. 403, 2005-12-13 official text · verified 2026-10-30

4. The tax is settled in the income tax return and paid in two installments, the first on the income tax date and the second six months later.Ley 11-92, Código Tributario, art. 405, 2005-12-13 official text · verified 2026-10-30

5. The amount is a credit against income tax. If income tax equals or exceeds it, the asset tax is extinguished. If it is higher, the difference goes in the two installments.Ley 11-92, Código Tributario, art. 407 and paragraphs I and II, 2005-12-13 official text · verified 2026-10-30

6. Agricultural sector companies are added to the exemptions.Ley 30-26, adding paragraph IV to art. 406 of the Código Tributario, art. 32, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 32 added the agricultural exemption on 18 June 2026.

Worked example

A company has taxable assets of RD$100,000,000 (US$1,642,017.25) and income tax of RD$400,000 (US$6,568.07). The asset tax is RD$1,000,000 (US$16,420.17). After the credit it pays RD$600,000 (US$9,852.10) more, in two equal installments of RD$300,000 (US$4,926.05).

Step by step

Estimate taxable assets early in the plan.
Compare 1% with projected income tax for the first years.
Ask about the art. 406 exclusions before you need them.
Budget both installments.

Common traps

A heavy capex start up can owe this in years with no profit.
The compiled code carries a note from Ley 253-12 on a phase out that was conditional. DGII still lists 1%, so budget it.
Art. 406 relief needs a request, and capital intensive projects must apply in time. See the tax section page.
Shares in other companies are excluded, so holding structures need a separate look.

Sources

← The 0.2% tax on checks and transfersTax losses are used in fixed slices →

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