Impuesto sobre la renta en República Dominicana

What are the earnings that require Income Tax Payments (known in Spanish as ISR) in the Dominican Republic?

  • By:Vianela Morillo
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In this article, we will provide more information about Income Tax in the Dominican Republic, but before going into greater detail, it is important to know the concept of this tax, which consists of the following:

It is the tax levied on any income, profit, earning or benefit obtained by natural persons, corporations and undivided successions, in a given tax period.”

This concept can be found in Law 11-92 of May 16th, 1992 and its modifications, specifically found in Title II of the Tax Code, where the matter is explained in detail. This is a highly relevant topic due to the scope and impact it has in terms of income for all residents of the Dominican Republic; as a result, it has its own application regulations, which is No. 139-98. This decree specifies the means and time for its application to the corresponding parties.

The most commonly asked question regarding this topic is the one in the title, especially in terms of profits and income received abroad. Foreign nationals commonly ask:

  1. If I work abroad from the Dominican Republic, do I have pay Income Tax in the Dominican Republic?
  2. I am a foreign national with residence or domicile in the Dominican Republic, do I have to pay Income Tax (ISR)?
  3. Do I have to pay tax in the Dominican Republic for income generated from financial assets abroad?

Dear Reader, you do have to pay Income Tax (ISR) in the country for all the aforementioned circumstances. However, there are some exceptions, which we will be listing.

Who is required to pay income tax in the Dominican Republic?

1. Any natural or legal person who is a resident or is domiciled in the Dominican Republic, regardless of whether they are foreign nationals or Dominican citizens.

2. The undivided estates of predecessors domiciled in the country.

In other words, the tributary system of the Dominican Republic applied to the collection of Income Tax (ISR), is not only a tax mechanism for companies included in the concept of legal persons and corporations, but also for individuals including lawyers, doctors, journalists, engineers and other professionals who, as the case may be, are required to declare and pay the tax, as well as if they are foreign nationals with residence in the Dominican Republic or otherwise, but domiciled in the country.

Income Tax (or ISR as it is known by its acronym in the Dominican Republic) is applied by the General Directorate of Internal Taxes (DGII) both to legal and dependent natural persons or otherwise. Its application is consistent with the policies adopted by the Dominican State throughout its different administrations.

What are the tax rates?

1. Currently, the maximum tax rate is 27%, which applies to companies, corporations , successions and others.

2. For natural persons, there are three progressive scales of 15%, 20% and 25%. Individuals (employed and independent) enjoy an annual tax exemption. Please see the following table:

Salary retention scale 2019 and 2020

Annual scale Rate
1. Income up to RD$416,220.00 Exempt
2. Revenue from RD$416,220.01 to RD$624,329.00 15% of the surplus of RD$416,220.01
3. Revenue from RD$624,329.01 to RD$867,123.00 RD$31,216.00 plus 20% of the surplus of RD$624,329.01
4. Revenue from RD$867,123.01 onward RD$79,776.00 plus 25% of the surplus of RD$867,123.01

This information was taken from the General Directorate of Internal Taxes, see more details here .


All Dominican sourced income is subject to local taxes, regardless of whether the person or entity generating it is foreign or local. Conversely, income generated abroad is not subject to Dominican taxes, ‘except for investment income and financial gains from persons with residency or domicile in the Dominican Republic’

We reference the previous paragraph because it is one of the topics that causes the most confusion, doubts and uncertainty, especially for foreign nationals. This comes as a result of the fact that they assume that they do not have to pay income tax on the investment earnings they may have abroad, and that said earnings have no connection with the Dominican Republic. Some of the factors that cause this are the following:

  1. The money invested does not originate from the Dominican Republic.
  2. Investments are not made in the Dominican Republic.
  3. The profits do not enter the country.
  4. Among many other valid factors.

Fair or not, I would like to point out that the law is clear and precise, and it subjects all income you may receive to income tax (known in Spanish as ISR), even outside the Dominican Republic, based on the exception established above.

This is because our tax system is territorial (i.e. it refers to the individual, not to the earnings), and so if the individual resides or is domiciled in the country, then it would apply.

However, an important factor to keep in mind is that this exception also has its own exceptions, and whether you have to pay it or not will be determined by that. This is what commonly takes place, however, we will list the exceptions below:

  • First: Pensions and social security benefits received from abroad are expressly exempt from taxation.
  • Second: Dominican nationals and foreigners who come to reside in the Dominican Republic, are only subject to start paying taxes on their financial income from a foreign source, three years after establishing their residence in the country.
  • Third: Individuals who obtain their residence as retirees, or investors are exempt from paying said tax even after the third year of their residence.

This is established in:

  1. Law No. 16-95 Foreign Investment Law in the Dominican Republic.
  2. Law 171-07 on Special Incentives for foreign Pensioners and rentiers.


For tax purposes, a person who stays in the Dominican Republic for over one hundred eighty-two (182) days in a year, whether continuously or otherwise, is considered a resident of the Dominican Republic.

Therefore, if you ARE A FOREIGN NATIONAL considering to establish your residence and domicile in the Dominican Republic, you should consider one of the many options you may benefit from in the tax process, as well as with immigration. This comes as a result of the fact that there are great benefits granted by law, as as incentive to individuals who decide to obtain residence and nationality under the following categories:

  1. Investors.
  2. Pensioners.
  3. Rentiers.

You may see additional information about each of the aforementioned options in the following links:

1.   Residence by Investment in the Dominican Republic

2.   Benefits of obtaining residence for Investors, Pensioners and Rentiers in the Dominican Republic

3.   Who can apply for Property Owner Residency in the Dominican Republic and how?


At our law firm Morillo Suriel Attorneys at Law, we have a division specialized in Dominican Tax Law and Immigration Law in the Dominican Republic. We can assist you with any questions or concerns you may have regarding taxation and other obligations established in the Dominican Republic.

We are available
Posted in: Tax Law


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