Government proposes raising corporate income tax to 30% for three years for large companies

SANTO DOMINGO.- The Dominican government proposed increasing the corporate income tax to 30% for a period of three years for companies with annual revenues exceeding RD$1 billion, as part of the package of economic measures to be submitted to the National Congress to strengthen public finances.

Corporate income tax at 30% would impact about 1,000 large companies

In accordance with the initiative presented by the Ministry of Finance and Economy, the measure would apply exclusively to large taxpayers and would temporarily increase the corporate Income Tax rate from 27% to 30%.

According to official estimates, the increase in the corporate income tax (ISR) to 30% would affect just over 1,000 companies out of a universe of nearly 140,000 that filed tax returns in 2025, which represents less than 0.8% of total corporate taxpayers.

The authorities maintain that the measure seeks to concentrate collection efforts on companies with greater economic capacity, while maintaining protection for micro, small, and medium-sized enterprises, which would not be affected by this temporary increase.

The Government explained that this surcharge is part of a strategy to obtain between RD$40,000 and RD$50,000 million additional, resources that would be destined to face the pressures derived from the international crisis, preserve macroeconomic stability, and sustain investment and social protection programs.

In addition to the 30% corporate income tax, the project includes other measures such as an increase in the tax on checks and electronic transfers, the creation of a selective tax for electronic cigarettes and vapers, an increase in the taxation of casinos and gambling, and an additional US$10 charge on airline tickets.

The Minister of Finance and Economy, Magín Díaz, stated that the design of the proposal seeks to distribute the tax burden progressively, focusing on taxpayers with a greater ability to pay and avoiding new burdens for MSMEs and the majority of citizens.

If approved by the National Congress, the measure establishing a 30% corporate income tax would be in effect for three years and would be part of the government’s plan to strengthen fiscal sustainability without modifying the ITBIS rate or base.