SMEs face regulatory and tax challenges in Mexico and Dominican Republic

Small and medium-sized enterprises (SMEs) in Mexico and the Dominican Republic are facing significant operational challenges due to high tax burdens and regulatory complexity.

In Mexico, legal instability and overregulation are estimated to cost companies between 544 billion and 907 billion pesos annually. Experts suggest that legal frameworks must transition from reactive problem-solving to strategic preventive tools, utilizing flexible contracts and clear internal policies to manage volatility.

In the Dominican Republic, the Chamber of Commerce and Production of Santo Domingo (CCPSD) identified the tax burden as a primary factor affecting business competitiveness. Recent legislative reforms and increases in taxes on electronic transfers have added new requirements and standards that entrepreneurs must navigate alongside rapid technological advancements.