Construction sector faces fiscal and legal challenges in Dominican Republic

Experts at the Association of Builders of Santo Domingo Este (ACOSDE) have warned that the construction sector faces significant challenges due to new fiscal changes and a shifting legal landscape. During a recent industry luncheon, specialists emphasized the need for companies to strengthen organizational structures, control costs, and implement robust legal security mechanisms.

Engels Fortuna detailed the impact of Law 30-26, noting that the legislation modifies both direct and indirect cost structures for construction firms. Additional pressures include increased withholdings on technical services, higher bank transfer costs, transitional changes to Income Tax for larger companies, and new regulations regarding solid waste. These factors necessitate long-term strategies to improve resilience and reduce dependence on monetary policy.

Furthermore, Tania de León highlighted the importance of criminal compliance programs. She noted that because trust is fundamental to the construction business, companies must adopt compliance tools to identify, prevent, and provide evidence of effective risk management in response to the new penal code.