Dominican Republic tax agency eases debt repayment for businesses and individuals

Pedro Urrutia Sangiovanni, director general of the Dominican Republic's Internal Taxes Directorate (DGII), presented a package of incentives under Law 30‑26 aimed at stimulating growth, simplifying tax compliance and mitigating the effects of the international crisis. The law caps late‑payment interest at 3% and limits total surcharges to 100% of the principal tax owed, while offering a special amnesty that allows taxpayers with irrevocably judged debts to settle through flexible payments until 31 December 2026.

Key tax reductions include a 10% rate on capital gains from residential property sales, new exemptions for primary homes, a six‑month reinvestment window, and additional benefits for sellers aged 65 and older. Corporate levies are also softened: the 1% tax on company formation and capital increases will be abolished from 2027, and the mortgage tax will fall to 1% in 2027 and disappear by 2028. Micro‑enterprises with annual revenues up to RD$11.985 million will be exempt from advance payments, and inheritance tax exemptions are expanded to amounts up to RD$1 million.