Tax Insight

Dominican Republic raises corporate rate, adds withholding taxes and accelerated depreciation

Insight
5 minute read
July 13, 2026

What happened?

The Dominican Republic Government, on June 18, 2026, enacted Law No. 30-26 on Economic Growth Measures, Fiscal Simplification, and Mitigation of the International Crisis. The law introduces a broad package of tax measures intended to promote economic growth, simplify tax administration, strengthen tax compliance, and support fiscal consolidation. The law entered into force the day after its publication on June 19.

Why is it important?

Among the measures most relevant to multinational enterprises are a temporary increase in the corporate income tax rate for certain large taxpayers; new withholding tax rules applicable to cross-border royalties, technical assistance, software licenses, online advertising services, and data storage; an accelerated depreciation regime for qualifying machinery and equipment; and various measures intended to strengthen tax administration and compliance.

Actions to consider

Multinational groups with operations or investments in the Dominican Republic should consider:

evaluating whether the temporary 30% corporate income tax rate will apply to their Dominican Republic operations;
reviewing existing cross-border service, royalty, software licensing, online advertising, and data storage arrangements considering the new withholding tax rules;
assessing opportunities to benefit from the accelerated depreciation regime for qualifying capital investments; and
identifying whether any outstanding tax controversies or liabilities may qualify for relief under the temporary tax amnesty.