Dominican Republic Corporate Income Tax

Corporate income tax rates, base and withholding

Companies resident in the Dominican Republic pay a flat 27% corporate income tax on net Dominican-source profit. A 1% asset tax operates as a minimum tax, and monthly advance payments are required.

• Standard corporate income tax rate — 27% percent (Código Tributario (Law 11-92), Art. 297)
• Tax base — Net taxable income (Dominican-source gross income less deductible expenses incurred to produce/maintain that income) (Código Tributario (Law 11-92), Title II)
• Asset tax as minimum tax — 1% of net taxable assets; payable to the extent it exceeds the corporate income tax due (creditable against CIT) percent (Código Tributario (Law 11-92), Asset Tax provisions)
• Monthly advance payments (anticipos) — Monthly advances of corporate income tax are payable based on prior-year liability/effective rate (Código Tributario (Law 11-92), Art. 314)
• Withholding tax on dividends (to residents and non-residents) — 10% percent (Código Tributario (Law 11-92), Art. 308)
• Withholding tax on interest paid abroad — 10% on interest paid to non-resident lenders percent (Código Tributario (Law 11-92), Art. 306 bis)
• Withholding tax on royalties paid abroad — 27% on royalties paid to non-residents percent (Código Tributario (Law 11-92), Art. 305)
• Withholding tax on services/technical assistance paid abroad — 27% on payments to non-resident service providers (technical assistance, publicity, etc.) percent (Código Tributario (Law 11-92), Art. 305)
• Tax loss carryforward — Losses may be carried forward for up to 5 years, with annual deduction caps (20% per year; 80% cap in year 4, 70% in year 5) ((approx — confirm annual cap mechanics)) (Código Tributario (Law 11-92), Art. 287)
• Annual return (IR-2) filing & payment deadline — Within 120 days after fiscal year-end (Código Tributario (Law 11-92), Form IR-2)
• Permitted fiscal year-end dates — 31 December, 31 March, 30 June or 30 September (Código Tributario (Law 11-92))