🇩🇴 Dominican Republic · Taxes
Taxes in the Dominican Republic
A territorial system of taxation: foreign income is not taxed during the first three years of residency.
The Dominican Republic follows the territorial principle of taxation: income from Dominican sources is taxed, while income from foreign sources is not, apart from foreign investment income and financial gains of residents.
The tax system
Income from Dominican sources is taxed, while income from foreign sources is not. Residents do pay tax on foreign investment income and financial gains. For people who have become residents, income from foreign sources is only taxed from the third year onwards.
Personal income tax
- 15% - up to $7,400
- 25% - up to $11,100
- 35% - above $11,100
Other taxes and contributions
- Corporate tax: 25%.
- VAT: 15%.
- Pension contribution: 2.87% for employees, with the capped salary set at 20 minimum wages.
- Healthcare: 3.04% for employees, with the capped salary set at 10 minimum wages.
The exact tax burden depends on your situation. We will go through your case on a free consultation.
Features of the tax system
Territorial principle
Foreign income is not taxed, apart from foreign investment income and financial gains of residents.
A three-year grace period
Foreign income of new residents is not taxed until the third year of residency.
Progressive income tax
A rate of 15%, 25% or 35% depending on the amount of income.
FAQ
Is foreign income taxed?
What is the personal income tax rate in the Dominican Republic?
What is the corporate tax rate?
What is the VAT rate?
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