Legislation, Administration And Collection

Taxation in the Dominican Republic is governed by Law 11-92, commonly known as the Tax Code, and its regulations. Taxes are administered and collected by the Dominican Internal Revenue Agency, known by its Spanish acronym of DGII.

Custom duties, established under a separate statute, are administered and collected by the Customs Agency.

Territoriality

Dominican tax law is primarily territorial. In principle, the Dominican Republic only collects taxes on income from Dominican sources. Thus, on the one hand, all income derived from work or business activities in the Dominican Republic is taxable, no matter if the person is Dominican, a resident or nonresident foreigner, a Dominican business entity or a foreign company with or without a branch office in the country. On the other hand, income derived from work done outside of the Dominican Republic is not taxable, even if received by Dominican nationals or companies, foreign individuals residing in the Dominican