Dominican Republic law 30-26 overhauls income and capital tax

Law 30-26, titled "Medidas Pro‑Crecimiento Económico, Simplificación Fiscal y Mitigación de la Crisis Internacional," was enacted in the Dominican Republic to reform the tax system. It introduces a progressive personal income tax schedule that will reach a top marginal rate of 27% by 2027, while maintaining exemption for earnings up to RD$480,000. The law also reduces the withholding tax on payments to non‑resident providers from 27% to 15%, easing costs for companies that use digital services.

For capital gains on real‑estate transactions, the reform sets a flat 10% rate for individuals, replacing the previous rate that could rise to 25%, and provides exemptions for seniors over 65 and for sellers who reinvest proceeds in a new home within a set period. Legal entities that merely hold real‑estate assets receive a preferential 10% rate, while other companies continue under the general regime.

The legislation includes a fiscal amnesty mechanism, but recent data show that amnesties have generated decreasing revenue for the Treasury. Between 2020 and 2024, three amnesty laws collected roughly RD$37.8 million, with the latest under Law 30‑26 expected to raise only a small share of the government's target of RD$40‑50 billion in additional revenue.