Countries › Dominican Republic › Guide › 6. Taxes › Deductions and depreciation in the Dominican Republic: 5%, 25% and 15% categories and the coming accelerated regime

Deductions and depreciation in the Dominican Republic: 5%, 25% and 15% categories and the coming accelerated regime

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

Business expenses are deductible if necessary to earn, keep and preserve income and if backed by valid fiscal receipts. Assets depreciate on a declining pool at 5%, 25% or 15%, and Ley 30-26 lets companies double the rate on new industrial machinery once DGII publishes its list. Payments above RD$50,000 must go through the banking system.

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

Buildings	5 % a yearLey 11-92 art. 287, as of 2026-10-30 · in force
Vehicles, office and computer equipment	25 % a yearLey 11-92 art. 287, as of 2026-10-30 · in force
Other depreciable property	15 % a yearLey 11-92 art. 287, as of 2026-10-30 · in force
Payments that must go through the banking system	50000 DOP, adjustableLey 11-92 art. 287 paragraph I, as of 2026-10-30 · in force

The rule

1. Necessary expenses to obtain, keep and preserve income are deductible. Payments above RD$50,000, adjustable for inflation, must use bank or financial means that identify the payee, on top of fiscal receipts, to support costs, deductions or tax credits.Ley 11-92, Código Tributario, art. 287 and paragraph I, 2012-11-09 official text · verified 2026-10-30

2. Depreciation uses three categories: 1, buildings and structural parts, 5%; 2, cars, light trucks, office equipment and computers, 25%; 3, all other depreciable property, 15%. Leased assets use 50% for category 2 and 30% for category 3.Ley 11-92, Código Tributario, art. 287 literal e numerals III to V, 2012-11-09 official text · verified 2026-10-30

3. Category 1 assets are held in separate accounts and categories 2 and 3 in a single pool. In pools, half of an addition goes in the year of addition and half in the next. Repairs on pooled assets are deductible in the year. ITBIS paid on purchase is left out of the initial value for categories 2 and 3.Ley 11-92, Código Tributario, art. 287 literal e numerals III and VIII, 2012-11-09 official text · verified 2026-10-30

4. Companies may depreciate new machinery and equipment at double the category rate if it is in tariff chapters 84 or 85, has a normal useful life of at least five years, is for industrial use and is not parts. DGII must publish the list of goods.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 287 literal e numeral IX, 2026-06-18 official text · verified 2026-10-30 · changed: Added by Ley 30-26 art. 24. Notice 10-26 ties its start to the general norm. DGII opened the draft list in notice 11-26, with comment until 15 September 2026.

5. Donations to public benefit institutions are deductible up to 5% of net taxable income after losses, and contributions to approved employee pension plans up to 5% of taxable income. Research costs can be expensed with DGII consent.Ley 11-92, Código Tributario, art. 287 literals i, j and l, 2012-11-09 official text · verified 2026-10-30

6. Not deductible: personal expenses of owners, salaries without real services or above third party levels, income tax with its surcharges and interest, expenses without documents and profits sent to reserves. Audit adjustments for personal, salary or undocumented items add a 25% sanction per item.Ley 11-92, Código Tributario, art. 288 and paragraph, 1992-05-16 official text · verified 2026-10-30

7. DRAFT, NOT IN FORCE. The draft regulation reads industrial use widely to cover health providers, logistics, shopping centre equipment and power companies, and extends the regime to tariff chapter 90 goods on conditions.Draft regulation of Ley 30-26, art. 25 to art. 27, 2026-10-30 official text · verified 2026-10-30

Regime	Half in pool	Rate	Year one deduction
Ordinary	RD$5,000,000	15%	RD$750,000
Accelerated, once the list is issued	RD$5,000,000	30%	RD$1,500,000

First year depreciation on a RD$10,000,000 machine in category 3

Worked example

Accelerated depreciation on that machine adds RD$750,000 (about US$12,323.49) of deduction in year one, deferring RD$202,500 (about US$3,327.34) of tax at 27%.

Step by step

Classify each asset into a category.
Exclude ITBIS from the value of category 2 and 3 assets.
Add half of new assets to the pool this year and half next year.
Keep tariff classification and purchase papers if planning to use the accelerated rate.
Pay anything above RD$50,000 through a bank.

Common traps

A cash payment above RD$50,000 loses both the deduction and any ITBIS credit it supports.
The accelerated regime is not usable until DGII issues the list, and no such norm appears in its list on the verification date.
The depreciation base is the pool at year end, so the rate runs on a declining balance.

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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