Countries › Dominican Republic › Guide › 12. Sectors › Mining taxes, royalties and State contracts

Mining taxes, royalties and State contracts

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

The general regime has an annual patent, a 5% export royalty creditable against income tax in the same year, and income tax. Municipalities also get 5% of net profit from non renewable resources. The large mines run on contracts approved by Congress: Pueblo Viejo pays 25% income tax, a 28.75% net profits share and a 3.2% net smelter return.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar, as shown on its home page on 30 October 2026, rounded to the cent.

Key facts

Export royalty, FOB, creditable same year	5 %Ley 146-71 art. 119 and 120, as of 2026-10-30 · in force
Municipal share of net profits	5 %Ley 64-00 art. 117 paragraph II, as of 2026-10-30 · in force
Pueblo Viejo net smelter return	3.2 %Contract with PVDC, second amendment, as of 2026-10-30 · in force
Pueblo Viejo net profits share	28.75 %Contract with PVDC, second amendment, as of 2026-10-30 · in force
Pueblo Viejo income tax	25 %Contract with PVDC, second amendment, as of 2026-10-30 · in force

The rule

1. Mining pays three items under the mining law: the annual patent, the export royalty on minerals in natural state or metallic concentrates, and income tax.Ley 146-71, art. 113, 1971-06-04 official text · verified 2026-10-30

2. The patent is paid per mining hectare on a scale of RD$0.10 to RD$2.00 and is neither creditable nor deductible. The ministry notes the amounts were never adjusted for inflation.
Cost to do it: Up to 5,000 hectares in exploitation: RD$0.50 per hectare, so RD$2,500 (about US$41.05) a year on 5,000 hectares if the rate applies to the whole area.Ley 146-71; EITI RD, art. 114 to 116, 1971-06-04 official text · verified 2026-10-30

3. Exports of minerals in natural state or metallic concentrates pay a 5% royalty on the FOB price at a Dominican port, settled provisionally at customs within 10 days of shipping and finally within 3 months.
Example: RD$30,450,350 on exports of RD$609,007,000 / US$500,000.00 on exports of US$10,000,000.00Ley 146-71, art. 119, 1971-06-04 official text · verified 2026-10-30

4. For the final price, authorities approve the transfer price or fix it from international quotes, always whichever is most favorable to the State.Ley 146-71, art. 119 second paragraph, 1971-06-04 official text · verified 2026-10-30

5. The royalty is creditable against income tax of the same year, but any excess cannot be carried to later years.Ley 146-71, art. 120, 1971-06-04 official text · verified 2026-10-30

6. Smelters and refineries exporting metallic compounds, metalloids and metals do not pay the royalty.Ley 146-71, art. 121, 1971-06-04 official text · verified 2026-10-30

7. Holders may export only after meeting local demand, at a FAS price set by the authorities.Ley 146-71, art. 122, 1971-06-04 official text · verified 2026-10-30

8. The mining law states a 40% State take on net profit. The ministry's EITI report says income tax is paid according to the Tax Code.Ley 146-71; EITI RD, art. 123, 1971-06-04 official text · verified 2026-10-30

9. No deduction is allowed for depletion, and depreciation has its own table, such as 5% for plant equipment, 20% for trucks and light vehicles and 10% for heavy equipment.Ley 146-71, art. 124 and 125, 1971-06-04 official text · verified 2026-10-30

10. Failure to pay the patent, royalty or income tax can cost the holder the concession.Ley 146-71, art. 75, 97 d and 98 c to e, 1971-06-04 official text · verified 2026-10-30

11. The municipalities where a non renewable resource is exploited receive 5% of the net profits generated.Ley 64-00, art. 117 paragraph II, 2000-08-18 official text · verified 2026-10-30

12. EITI RD found only one metallic exploitation concession bound by that 5% payment in 2021 and 2022: Cerro de Maimón, which paid RD$29,797,719 to the municipality in September 2022 for 2021.EITI RD, subnational payments, section on Ley 64-00, 2022-09-30 official text · verified 2026-10-30

13. Ley 123-71 sets ten cents per cubic meter of material extracted, with half going to the municipality, and Decreto 145-03 sets an environmental tariff of RD$4 per cubic meter for sand, gravel and rock, though its coupon method has not been applied since mid 2017.Ley 123-71; Decreto 145-03, via EITI RD, general fiscal regime section, 2003-02-13 official text · verified 2026-10-30

14. Ley 14-93 removed the import exemptions of art. 129 of the mining law, according to the ministry.Ley 14-93, via EITI RD, general fiscal regime section, 1993-08-26 official text · verified 2026-10-30

15. Metallic mining contracts are signed by the State and the company and approved by Congress. They are promulgated and published in the Gazette.EITI RD, mining contracts, metallic contracts section, 2022 official text · verified 2026-10-30

16. Pueblo Viejo Dominicana Corporation pays income tax at 25%, a net profits share (PUN) of 28.75% and a net smelter return of 3.2% under the second amendment.EITI RD, contractual regime, PVDC, 2022 official text · verified 2026-10-30

17. The ferronickel contract with Falconbridge Dominicana combines 1% income tax, 33% participation on total monthly benefits, a supplementary charge and an annual surface tax.EITI RD, contractual regime, Falconbridge, 2022 official text · verified 2026-10-30

18. Las Lagunas Limited pays royalties of 3.2% of net smelter return, a net profits share, a tax on net profits and general Tax Code taxes.EITI RD, contractual regime, Las Lagunas, 2022 official text · verified 2026-10-30

19. Ley 91-05 splits the funds for Sánchez Ramírez from the Pueblo Viejo contract: 40% to Cotuí, 40% to the other municipalities, 10% to projects in three sections and 10% to Monseñor Nouel.Ley 91-05, via EITI RD, FOMISAR, 2005 official text · verified 2026-10-30

20. A fund of 5% of the State's annual income tax from holders is meant to promote mining activity.Ley 146-71, art. 198, 1971-06-04 official text · verified 2026-10-30

Item	General concession	Pueblo Viejo contract
Income tax	Tax Code per EITI RD; law says 40%	25%
Royalty	5% FOB on natural state or concentrates, creditable	3.2% net smelter return
Profit share	None	28.75% net profits share
Municipal share	5% of net profits	Ley 91-05 fund for the province
Patent	RD$0.10 to RD$2.00 per hectare	Per contract

State take by regime

Worked example

A concentrate exporter ships RD$609,007,000 (about US$10,000,000.00). The royalty is RD$30,450,350 (about US$500,000.00). If its income tax that year is only RD$12,180,140 (about US$200,000.00), the difference of RD$18,270,210 (about US$300,000.00) is a final cost, because art. 120 blocks carry forward.
On net profit of RD$609,007,000 (about US$10,000,000.00), the 5% to municipalities under Ley 64-00 is RD$30,450,350 (about US$500,000.00).

Step by step

Work out if the title is a plain concession or a contract, since each sets its own tax mix.
Book the royalty at customs within 10 days of shipping.
Credit it against income tax of the same year only.
Pay the patent in advance in the two yearly windows.
Compute and pay the municipal 5%.
Get a transfer price approved or expect the most favorable quote to be used.

Common traps

The 40% of art. 123 and the current general rate do not match. Use the Tax Code and the concession text, and get written advice on any older title.
Each 25 years an exploitation holder moves to the regime then in force (art. 49), so a tax model cannot stop at year 25.
Art. 115 text has an evident typo in its second half year dates. Pay in advance in December and June.
Contract terms above are as reported for 2021 and 2022. Later amendments, if any, were not reviewed.
Ley 91-05 date was not confirmed beyond its number, so check it in the Gazette before citing.

Sources

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