Countries › Dominican Republic › Guide › 16. What is normal abroad but not here › Paying local individuals means withholding

Paying local individuals means withholding

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

Abroad a business pays a local freelancer gross; here the payer withholds 15% on fees and on rent paid to individuals. Ley 30-26 raised most of these rates from 10% from 1 July 2026, and rent withholding is now final. The tax authority can also ask companies to withhold up to 1% when they pay other companies.

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

Withholding on rent to individuals	15 %Ley 11-92 art. 309 as restated by Ley 30-26, as of 2026-10-30 · in force
Withholding on fees to individuals	15 %Ley 11-92 art. 309 as restated by Ley 30-26, as of 2026-10-30 · in force

The rule

1. Withholding is 15% on rent of any movable or immovable property provided by individuals, as a final payment, and 15% on fees, commissions and service payments to individuals outside employment that need direct human work, as a payment on account.
Cost to do it: No added cost if the gross fee is budgeted.
Example: Fee RD$100,000: withhold RD$15,000. / Fee US$1,642.02: withhold US$246.30.Ley 11-92, Código Tributario, as restated by Ley 30-26 art. 17, art. 309 paragraph a and b, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 17 set the 15% rates, listed by DGII from 1 July 2026 in notice 10-26.

2. The tax authority may name withholding agents among those who pay or credit income, under art. 309.Ley 11-92, Código Tributario, art. 309, 2012-11-09 official text · verified 2026-10-30

3. Prizes on lotteries and promotional campaigns carry 25% as a final payment.Ley 11-92, Código Tributario, as restated by Ley 30-26 art. 17, art. 309 paragraph c, 2026-06-18 official text · verified 2026-10-30

4. Companies that withhold ITBIS under Norma General 02-05 do not do so for an authorized e-issuer that invoices by e-CF.Norma General 02-2026, Single article, 2026-09-16 official text · verified 2026-10-30

Worked example

A company hires a local designer for RD$100,000 (US$1,642.02). It pays RD$85,000 (US$1,395.71) and sends RD$15,000 (US$246.30) to DGII as a payment on account. The designer reports the income and credits the tax.

Step by step

Classify each payee: individual, company or abroad.
Withhold when paying or crediting.
File and pay with the monthly return.
Give the payee proof of the amount withheld.

Common traps

Rent to an individual is now final, which changes how the landlord files.
The regulation for Ley 30-26 was still a draft on the check date, and it may narrow some of these rules. See the tax section page.
Payments abroad follow a separate regime, covered on the related withholding page.

Sources

← Tax losses are used in fixed slicesLeases: new law, long notice →

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