This article provides a detailed overview of the corporate tax regime in the Dominican Republic for 2025. Drawing on the latest data, it covers standard corporate tax rates, assessment practices, and additional surcharges applicable to companies operating in this jurisdiction.
Dominican Republic Corporate Tax Overview
Corporate income tax in the Dominican Republic is imposed on a flat-rate basis, meaning all companies—regardless of size or sector—are subject to the same statutory tax rate. The tax is assessed on corporate profits, making it important for business owners and financial officers to be aware of both the rate and the basis of assessment for effective tax planning.
| Parameter | Value (DOP) | Value (USD) (Rate: 1 USD = 58 DOP) |
|---|---|---|
| Corporate Tax Rate | 27% | 27% |
| Tax Type | Flat | Flat |
| Assessment Basis | Corporate Profits | Corporate Profits |
| Tax Brackets | Not Applicable | Not Applicable |
| Currency | DOP (Dominican Peso) | USD (US Dollar) |
Flat Corporate Tax Rate
For the tax year 2025, the flat corporate tax rate in the Dominican Republic remains at 27%. This rate is applied uniformly, so whether your company is a domestic entity or a subsidiary of a foreign corporation, the same statutory flat rate applies. There are no progressive brackets or reduction tiers based on revenues or profits.
Assessment Basis for Corporate Tax
The calculation of the tax liability is based directly on corporate profits, meaning all revenues, gains, and qualified taxable events are aggregated, with allowable deductions and expenses subtracted as permitted by Dominican law. The assessment basis reflects the internationally standard practice of taxing net profits rather than gross revenues.
Supplementary Tax: Assets Tax
In addition to the 27% corporate income tax, companies must take into account an additional assets tax. This acts as a minimum tax safeguard:
- Rate: 1% of total company assets
- Condition: Payable if the computed corporate income tax is lower than the total assets tax owed
This system ensures that companies with significant asset holdings but low reported profits still contribute a minimum tax amount. For practical purposes, businesses calculate both the CIT (corporate income tax) and the 1% assets tax; the higher liability is then paid.
| Surtax | Rate (%) | Condition |
|---|---|---|
| Assets Tax | 1% | Payable if CIT < 1% of total assets |
Special Considerations for 2025
There are no published data on tax brackets, special holding periods, or additional progressive surcharges in effect for 2025. The lack of tiered rates makes the Dominican Republic’s corporate tax structure relatively straightforward to understand and calculate for businesses of any size.
Pro Tips to Navigate Dominican Corporate Tax in 2025
- Ensure your asset valuation is accurate and up-to-date. Underestimating asset values can trigger issues during audits, while over-reporting can unnecessarily increase your tax burden if the assets tax applies.
- Every financial year, calculate both your CIT liability and the 1% assets tax before filing, as the higher amount will determine your actual tax payment.
- Monitor your company’s profits relative to asset holdings. Persistent low profits coupled with large asset bases may result in always owing the 1% assets tax, so short and long-term operational planning should consider this threshold.
- Maintain detailed supporting documentation on deductions and declared assets to prepare for potential scrutiny from tax authorities.
Official Source
For further information, consult the Dominican tax authority homepage (Dirección General de Impuestos Internos).
In summary, the Dominican Republic applies a transparent flat 27% corporate tax rate for 2025, complemented by a 1% assets-based minimum tax when the CIT falls short. There are no progressive tax brackets or specific holding period requirements, making compliance requirements clear. Businesses should pay close attention to the interaction of net profits and asset values when planning their annual tax strategy.