Dominican Republic Corporate Tax Guide 2026

Dominican Republic imposes corporate income tax (ISR) at 27% on net taxable profits. Companies operating in free trade zones benefit from a reduced 18% rate. A minimum tax of 1% on gross revenue applies when regular CIT results in a lower liability. Accelerated depreciation under Law 171-07 allows 30-100% first-year deductions.

Corporate Tax Rates 2026

The corporate tax system is administered by the Dirección General de Impuestos Internos (DGII). The tax year is the calendar year (January to December). Corporate tax returns are due by March 31 of the following year.

Standard CIT (ISR): 27% on net taxable profits
Free trade zones: 18% reduced rate for qualifying companies
Minimum tax: 1% on gross revenue (alternative minimum tax — applies if regular CIT is lower)

Deductible Expenses

Allowable deductions include ordinary and necessary business expenses: salaries, rent, utilities, marketing, interest expense, depreciation, and other operating costs. Non-deductible items include fines, penalties, personal expenses, and capital expenditures (which must be depreciated).

Under Law 171-07, companies may claim accelerated depreciation on new fixed assets: 30% to 100% in the first year depending on the asset category. This provides significant upfront tax relief for capital-intensive businesses.

Minimum Tax on Gross Revenue

If the regular CIT (27% of net profit) is less than 1% of gross revenue, the company must pay the difference as an alternative minimum tax. This ensures that even unprofitable companies contribute a baseline tax. The minimum tax can be carried forward and credited against future CIT liabilities for up to three years.

Tax Incentives

Law 171-07: Accelerated depreciation (30-100% first year) for new investments in fixed assets
Law 189-11: Tourism development incentives (PCT) — 0% ITBIS on construction materials, tax stability for up to 15 years
Law 108-10: Film industry incentives — 25% CIT credit on qualifying production expenses, 0% ITBIS

Disclaimer

This guide provides general information about Dominican Republic corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Dominican tax advisor or the DGII directly for advice specific to your situation. InvestmentKit does not provide tax advice.