Tax Residence in the Dominican Republic: Benefits of the Double Taxation Agreement with Spain
The Dominican Republic strengthens its appeal as a destination for tax residence, backed by the benefits of the Double Taxation Agreement with Spain.
Most Common Mistakes When Managing ITBIS – And How to Avoid Them
In the daily practice of handling the Tax on the Transfer of Industrialized Goods and Services (ITBIS)—known as VAT in several countries—it is common to encounter errors that, although seemingly minor, can have significant consequences for the company.
Income tax withholding (ISR) in the Dominican Republic: employees and suppliers
The Income Tax (ISR) is one of the main taxes levied on income earned by individuals and legal entities in the Dominican Republic. This tax can be withheld by certain payers—known as withholding agents—when making payments to third parties. Its purpose is to collect taxes in advance on behalf of
Value-Added Tax (ITBIS) in the Dominican Republic: exemptions and reduced rates
The Tax on the Transfer of Industrialized Goods and Services (ITBIS) is a key levy in the Dominican Republic’s tax system, with a general rate of 18%, applied to the transfer and importation of goods and the provision of services. However, there are specific goods and services that are exempt
Common errors when applying tax withholdings and how to avoid them
Applying tax withholdings correctly is not always as straightforward as it seems. Many taxpayers make mistakes unknowingly, which can result in penalties or undue payments. To avoid this, the first step is understanding what withholdings are and how they work. Tax withholdings are deductions applied by certain payers—known as withholding agents—to
How to establish a Free Zone company in the Dominican Republic: Steps and legal Considerations
Free Zones in the Dominican Republic represent one of the most dynamic pillars of the national economy. According to figures from the National Free Zones Council (CNZFE), this regime contributes approximately 67% of the country's total exports, generates over 190,000 direct and indirect jobs, and, as of the end of
The ITBIS in the Dominican Republic: A complete guide for businesses and professionals
The Impuesto sobre Transferencias de Bienes Industrializados y Servicios (ITBIS) is one of the fundamental pillars of the Dominican tax system. Similar to the Value Added Tax (VAT) in other countries, this indirect tax applies to the commercialization of industrialized goods and the provision of services, serving as a key
Requirement for Registration of the Tax Compliance Officer
Under Law No. 25-24, which amends Article 11 of the Dominican Tax Code and introduces significant reforms concerning joint liability in corporate tax obligations, the General Directorate of Internal Taxes (DGII) issued a notice on October 25, 2024. This notice mandates the registration of the individual who will serve as