Dominican Republic

An individual is a Dominican Republic tax resident if present in the country for more than 182 days during a calendar year, whether or not those days are consecutive.

The annual personal income tax return, and any tax due on income other than salaries, wages, and bonuses, is due by 31 March of the year following the tax year-end.

The Dominican Republic taxes non-resident individuals only on their Dominican-source income, while resident individuals are taxed more broadly, including on foreign investments and financial gains.

Individuals may deduct educational expenses for themselves and their non-wage-earning dependents, up to 10% of gross taxable income, alongside an inflation-adjusted standard deduction (DOP 416,220 a year as of 2021); self-employed individuals conducting business activities may instead deduct actual expenses or a simplified 40% of gross revenue.

Foreign individuals who become Dominican tax residents have their foreign-source income taxed only from the fourth year of residency onward, exempt for the first three years.

Registered taxpayers must file the monthly ITBIS return (Form IT-1) and pay any tax due no later than the 20th day of the following month.

Exempt goods include basic foodstuffs (eggs, milk, grains, frozen meats), seeds, produce, medicine, pesticides, books and educational material, wheelchairs and prosthetics; exempt services include education, health, financial and insurance services, pensions, ground transport, utilities, housing rental and personal care. A 0% rate separately applies to exports, including sales to free trade zones.