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Income tax advance payments in the Dominican Republic: monthly today, new tiers from 2027

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

Companies today pay twelve monthly advances, set at 1.5% of prior year gross income if their effective rate was 1.5% or less, or one twelfth of last year's tax otherwise. From fiscal year 2027 that rule stays only for medium and large companies, small ones pay three installments and micro companies are exempt. An income drop of more than 30% allows a request for relief.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.8594 per US dollar for 28 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Advance rate on prior year gross income, low effective rate taxpayers	1.5 %Ley 11-92 art. 314, as of 2026-10-30 · in force
Monthly advances, medium and large companies	12 per yearLey 11-92 art. 314, as of 2026-10-30 · in force
Income drop that allows a relief request	30 %Ley 11-92 art. 314 paragraph VI, as of 2026-10-30 · in force

The rule

1. Companies and sole proprietors with an effective rate of 1.5% or less pay twelve equal monthly advances of 1.5% of prior year gross income. Those above 1.5% pay monthly one twelfth of the tax assessed in the prior return. Individuals and undivided estates pay on 100% of prior tax: 50% in the sixth month, 30% in the ninth and 20% in the twelfth.Ley 11-92, Código Tributario, art. 314, prior text in force for fiscal year 2026, 1992-05-16 official text · verified 2026-10-30

2. From fiscal year 2027 the monthly rule applies to legal persons and entities classified as medium and large. Those whose income comes from commissions or State regulated margins use that income as the base.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 314 and paragraph I, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 23 replaced art. 314, effective fiscal year 2027 under its paragraph IX.

3. From fiscal year 2027 small companies and sole proprietors, individuals and undivided estates pay on 100% of prior year tax: 50% in the sixth month, 30% in the ninth and 20% in the twelfth. Micro companies and sole proprietors are exempt, and so is the agricultural sector.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 314 paragraphs II, III and VII, 2026-06-18 official text · verified 2026-10-30 · changed: New tiers from fiscal year 2027.

4. DGII uses the MIPYME income classification published by the Ministry of Industry and Commerce under Ley 488-08. Businesses above those thresholds count as large.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 314 paragraph VIII, 2026-06-18 official text · verified 2026-10-30

5. Taxpayers showing income down by more than 30% against the prior year can request total or partial exemption at least 15 days before the due date. DGII must grant it if it verifies the drop, and the relief cannot be less than the fall in income.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 314 paragraph VI, 2026-06-18 official text · verified 2026-10-30 · changed: Replaces the earlier test of a significant reduction, which depended on force majeure or extraordinary causes.

6. An excess of advances over the year end tax can be offset against the asset tax, without prejudice to a refund.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 314 paragraph V, 2026-06-18 official text · verified 2026-10-30

7. DRAFT, NOT IN FORCE. The draft keeps a business in its advance regime until year end if it crosses a size threshold, and allows relief for force majeure even without a fall in income.Draft regulation of Ley 30-26, art. 23 and art. 24, 2026-10-30 official text · verified 2026-10-30

Size	Advance
Large and medium	12 monthly; 1.5% of gross income or one twelfth of prior tax
Small	3 installments on 100% of prior tax: 50%, 30%, 20%
Micro	Exempt
Agricultural sector	Exempt
Individuals	3 installments, with relief if income had full withholding

Advance regime from fiscal year 2027

Worked example

A medium company with prior year gross income of RD$120,000,000 (about US$1,971,757.85) and tax of RD$1,200,000 (about US$19,717.58) has an effective rate of 1.0%. Its advance is 1.5% of gross income, RD$1,800,000 (about US$29,576.37) a year, or RD$150,000 (about US$2,464.70) a month. If prior tax had been RD$3,000,000 (about US$49,293.95), the rate would be 2.5% and the advance one twelfth of the tax, RD$250,000 (about US$4,107.83) a month.

Step by step

Find your MIPYME class in the Ministry resolution before January 2027.
Compute the effective rate from the prior return.
Pay on time, as advances carry the surcharge if late.
If income falls more than 30%, request relief at least 15 days before the due date.
Apply advances against the return and any excess against the asset tax.

Common traps

The new tiers do not apply to fiscal year 2026 advances.
The law sets size by income classification only, so a company with few staff but high sales can be classified as large.

Sources

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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