Countries › Dominican Republic › Guide › 6. Taxes › Corporate income tax in the Dominican Republic: 27%, the temporary 30% rate, returns and foreign income
Corporate income tax in the Dominican Republic: 27%, the temporary 30% rate, returns and foreign income
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Last verified: 2026-10-30 · Status: Changing
Companies and most other entities pay 27% on net taxable income under art. 297, and those with income from RD$1,000 million pay 30% for fiscal years 2026 to 2028. Residents are taxed on Dominican income plus foreign investment income, financial gains and, since Ley 30-26, technical assistance income. The IR-2 return and payment fall due 120 days after the fiscal close.
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
| Corporate income tax rate | 27 %Ley 11-92 art. 297, as of 2026-10-30 · in force |
|---|---|
| Temporary rate for income from RD$1,000 million, fiscal years 2026 to 2028 | 30 %Ley 11-92 art. 297 paragraph II, as of 2026-10-30 · in force |
| Income threshold for the 30% rate | 1000000000 DOPLey 11-92 art. 297 paragraph II, as of 2026-10-30 · in force |
| IR-2 return and payment | 120 days after fiscal closeReglamento 139-98 art. 111, as of 2026-10-30 · in force |
The rule
1. Domiciled legal persons pay 27% on net taxable income. The rate covers commercial companies, accidental or participation companies, E.I.R.L.s, public companies on commercial income, undivided estates, partnerships, de facto companies and any other profit seeking organization not expressly exempt.
Example: Taxable income RD$100,000,000: tax RD$27,000,000. / Taxable income US$1,643,131.55: tax US$443,645.52.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 297, 2026-06-18 official text · verified 2026-10-30
Example: Taxable income RD$100,000,000: tax RD$27,000,000. / Taxable income US$1,643,131.55: tax US$443,645.52.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 297, 2026-06-18 official text · verified 2026-10-30
2. For fiscal years 2026, 2027 and 2028, taxpayers with income from RD$1,000 million pay 30% of taxable income. From fiscal year 2029 they return to 27%.
Example: Income of RD$1,000,000,000 with taxable income of RD$80,000,000: tax RD$24,000,000 rather than RD$21,600,000. / The step up costs US$39,435.16.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 297 paragraph II, 2026-06-18 official text · verified 2026-10-30 · changed: New temporary rate. DGII notice 10-26 applies it to fiscal year 2026, starting with fiscal closes at 30 June 2026.
Example: Income of RD$1,000,000,000 with taxable income of RD$80,000,000: tax RD$24,000,000 rather than RD$21,600,000. / The step up costs US$39,435.16.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 297 paragraph II, 2026-06-18 official text · verified 2026-10-30 · changed: New temporary rate. DGII notice 10-26 applies it to fiscal year 2026, starting with fiscal closes at 30 June 2026.
3. Residents pay on Dominican source income and on foreign source income from investments, financial gains and technical assistance services. Technical assistance covers independent management, technical and consulting services that provide non patentable know how, with a long illustrative list that includes legal, accounting, tax, engineering, software and data services.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 269 and paragraphs I and II, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 12 added technical assistance services to taxable foreign source income.
4. Taxes actually paid abroad on foreign source income are a credit, up to the Dominican tax on that same income.Ley 11-92, Código Tributario, art. 316 literal a, 1992-05-16 official text · verified 2026-10-30
5. Fiscal years end on 31 December, or by election on 31 March, 30 June or 30 September. Changing the close needs DGII approval requested at least one month before the close to be changed.Ley 11-92, Código Tributario, art. 300, 1992-05-16 official text · verified 2026-10-30
6. Legal persons use the accrual method. Unrealized exchange differences at year end count as income or deductible expense. Inventories follow last in, first out unless DGII authorizes another method.Ley 11-92, Código Tributario, art. 301, art. 293 and art. 303, 1992-05-16 official text · verified 2026-10-30
7. A company files and pays within 120 days of the fiscal close. DGII published the 2026 dates as 30 April for a December close, 29 July for March, 28 October for June and 28 January for September.
Cost to do it: Late payment costs a 3% monthly surcharge plus 1.10% monthly interest on the unpaid tax.Reglamento 139-98 and DGII income tax page, art. 111, 1998 official text · verified 2026-10-30
Cost to do it: Late payment costs a 3% monthly surcharge plus 1.10% monthly interest on the unpaid tax.Reglamento 139-98 and DGII income tax page, art. 111, 1998 official text · verified 2026-10-30
8. Group reorganizations such as mergers, spin offs and transfers within an economic group are tax neutral if done under the regulation and approved in advance by DGII, and tax attributes then carry over to the continuing entity.Ley 11-92, Código Tributario, art. 323, 1992-05-16 official text · verified 2026-10-30
9. DGII can treat connected businesses as an economic group and reallocate income, deductions and credits to prevent evasion or to reflect income clearly.Ley 11-92, Código Tributario, art. 292, 1992-05-16 official text · verified 2026-10-30
| Income | Taxable income | Rate | Tax |
|---|---|---|---|
| RD$999,000,000 | RD$80,000,000 | 27% | RD$21,600,000 |
| RD$1,000,000,000 | RD$80,000,000 | 30% | RD$24,000,000 |
Rate cliff at RD$1,000 million
Worked example
- A company closing 31 December 2026 has gross income of RD$250,000,000 (about US$4,107,828.86) and net taxable income of RD$30,000,000 (about US$492,939.46). Tax at 27% is RD$8,100,000 (about US$133,093.66). Advance payments and creditable withholding are subtracted, and the balance is due with the IR-2 by the 2027 date DGII publishes.
Step by step
- Confirm the fiscal close in the bylaws.
- Run the income test against RD$1,000 million before the first advance of the year.
- Reconcile book income to taxable income, including non deductible items.
- Reconcile foreign tax credits and keep proof of foreign payment.
- File the IR-2 and asset tax together, with annexes.
Common traps
- The 30% rate is a cliff on the whole taxable income, not a surcharge on the excess, and the law does not define income for the test in more detail.
- Ley 30-26 widens foreign source income to technical assistance. A Dominican company with foreign consulting clients should now expect to report that income.
- Under art. 288, the owner's personal expenses, unsupported expenses and salaries without real services are disallowed, and an audit adjustment adds a 25% sanction on each disallowed expense.
Sources
- Ley 30-26 of 18 June 2026, DGII copy
- DGII notice 10-26, implementation calendar for Ley 30-26
- Código Tributario, Title II, DGII
- Reglamento 139-98, DGII copy
- DGII income tax and asset tax page
Related pages
- taxes/asset-tax
- taxes/advance-payments
- taxes/depreciation-and-deductions
- taxes/loss-carryforward
- taxes/dividend-withholding
- taxes/tax-incentives
- entities/annual-compliance
- /country/dominican-republic/
- /calendar/
- Live dashboard
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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