After creating a company or corporation in the Dominican Republic, certain tax obligations arise, which are commitments acquired when registering in the National Taxpayers Registry (RNC) as a taxpayer.
What Are Tax Obligations?
The General Directorate of Internal Taxes (DGII) defines them as follows:
Tax obligations are established by law and are assigned based on the economic activities declared by the taxpayer. These obligations arise on the date operations commence, as declared at the time of RNC registration, and must be fulfilled on specific dates.
Currently, in the Dominican Republic, the digitalization of tax and fiscal obligation payments for a company has significantly grown, and today, almost all payments are digitalized and can be made with just one click.
Every Dominican company will have the following responsibilities:
- Filing and paying taxes in the Dominican Republic.
- Responsibility to include and pay the Social Security Treasury (TSS) for all employees.
To learn about all the taxes a company must pay in the Dominican Republic, you can visit the General Directorate of Internal Taxes (DGII) website in the tax obligations section.
Also, on the DGII website, companies must submit their tax accounting and pay the taxes due for their tax obligations.
What tax obligations does a small business have in the Dominican Republic? At Contadores Dominicanos, you will find the best professionals and advisors on tax matters in the Dominican Republic, ready to help you with whatever you need.
Taxes Filed Monthly:
- Purchase of goods and services (606).
- Sale of goods and services (607).
- Income Tax withholdings for employees (IR-3).
- Withholdings and supplementary payments (IR-17).
- Tax on the Transfer of Industrialized Goods and Services (IT-1).
Taxes related to forms (606) and (607) must be filed no later than the 15th of each month. Those related to forms (IR-3) and (IR-17) must be filed no later than the 10th of each month. The IBTIS (IT-1) must be filed no later than the 20th of each month.
Taxes Filed Annually:
- Annual Income Tax Return (IR-2).
- Tax Settlement.
- Taxable Assets.
These must be filed and paid no later than 120 days after the closing date. The deadline is March 30 of each year for companies or corporations with December 31 closures and other closures allowed by tax legislation.
For the Payment of the Social Security Treasury (TSS):
This is done through the TSS platform. The Social Security Treasury is an agency dependent on the National Social Security Council (both created by Law 97-01).
Its primary objective is to manage the Unified Information and Collection System (SUIR) and the distribution and payment of resources for the Dominican Social Security System (SDSS). It also aims to collect and distribute contributions transparently and equitably.
The Contribution to Be Paid to the TSS:
The contribution amount depends on employees’ salaries and is established as follows:
| Insurance | Employer % | Employee % |
| Family Health Insurance | 7.09% | 3.04% |
| Old Age, Disability, and Survivor Insurance | 7.10% | 2.87% |
| Occupational Risk Insurance | 1% fixed fee plus a percentage ranging from 0.10 – 0.30 depending on the company’s risk factor | 0% |
Companies cannot overlook their tax obligations if they want to avoid sanctions or tax violations that could affect their operations.
After understanding the taxes companies pay in the Dominican Republic, you might need help filing these obligations with the relevant authorities. At Contadores Dominicanos, we can provide the assistance you and your company need.
