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ITBIS withholding for electronic issuers is one of the tax changes that companies in the Dominican Republic need to review following the entry into force of General Rule No. 02-2026, issued by the General Directorate of Internal Taxes (DGII).
The new provision modifies the application of certain ITBIS withholding requirements when companies make payments to legal entities authorized as electronic issuers and the transaction is supported by an Electronic Tax Receipt (e-CF).
Companies can consult the official text of [General Rule No. 02-2026 issued by the DGII] to review the specific provisions and requirements.
What does ITBIS withholding for electronic issuers mean for companies?
The new regulation changes how certain ITBIS withholdings must be handled when the supplier meets two main conditions:
- The supplier is authorized by the DGII as an electronic issuer.
- The transaction is supported by an Electronic Tax Receipt (e-CF).
This means that companies should no longer automatically apply certain ITBIS withholdings based solely on the type of service received.
They must also consider the supplier’s tax status and the type of tax document used for the transaction.
In other words, accounts payable processes should incorporate an additional validation before calculating and recording a withholding.
For example, the DGII has confirmed that when a security and surveillance company authorized as an electronic issuer invoices through an e-CF, the 100% ITBIS withholding established under the regulations covered by General Rule 02-2026 no longer applies.
Which ITBIS withholdings are no longer applicable?
General Rule 02-2026 establishes that certain withholdings under General Rule 02-05 and its amendments no longer apply when the established conditions are met.
The following are among the services affected by this change:
| Service | Previous withholding | Treatment under Rule 02-2026* |
|---|---|---|
| Professional services | 30% of ITBIS | No withholding |
| Rental of movable property | 30% of ITBIS | No withholding |
| Security and surveillance services | 100% of ITBIS | No withholding |
| Airline and hotel commissions paid to travel agencies | 100% of ITBIS | No withholding |
*Provided that the conditions established by General Rule 02-2026 are met, including that the supplier is authorized as an electronic issuer and that the transaction is supported by an e-CF.
Professional services may include activities such as engineering, accounting, auditing, legal services, information technology, consulting, design, and other professional activities.
It is important to understand that the new provision does not eliminate all ITBIS withholding requirements in the Dominican Republic. Its scope specifically relates to withholdings established under General Rule 02-05 and its amendments.
For this reason, each transaction must be analyzed according to the regulation that originally establishes the withholding obligation.
What does this change mean for companies?
The change may directly impact accounts payable, purchasing, accounting, and supplier management processes.
Before recording a withholding, companies should verify:
- Whether the supplier is a legal entity.
- Whether the supplier is authorized as an electronic issuer by the DGII.
- Whether the document received is an e-CF.
- What type of service is being invoiced.
- Which regulation establishes the applicable withholding.
- Whether the transaction falls within the scope of Rule 02-2026.
For this reason, ITBIS withholding for electronic issuers should be managed as a tax rule that considers both the characteristics of the transaction and the supplier’s status.
How can you determine whether a supplier is an electronic issuer?
One of the main checks companies should perform is confirming that the supplier is authorized as an electronic issuer.
The DGII provides information and tools related to electronic invoicing and authorized taxpayers.
Companies can review the official requirements and information through the [DGII Electronic Invoicing section].
They can also consult the [official DGII documentation on Electronic Tax Receipts (e-CF)] for technical and tax-related information about the system.
In addition, companies should review the tax document received. e-CFs have a specific structure and must correspond to a taxpayer authorized by the DGII.
What happens to income tax withholdings?
General Rule 02-2026 focuses on certain ITBIS withholdings established under General Rule 02-05 and its amendments.
Therefore, it should not be interpreted as a general elimination of Income Tax (ISR) withholdings.
ISR withholding requirements have their own rules and must be analyzed according to the type of transaction, the supplier, and the applicable regulations.
Likewise, transactions involving electronic issuers are not automatically exempt from every type of tax withholding.
ITBIS withholding for electronic issuers must therefore be analyzed within the specific scope of General Rule 02-2026.
When does General Rule 02-2026 apply?
General Rule No. 02-2026 entered into force on September 16, 2026, the date on which it was published.
An important consideration for companies is determining the appropriate point in time at which the new provision should be applied.
The DGII has clarified that, for these purposes, the payment date should be considered. This means that an invoice issued before the rule came into force but paid afterward may be subject to the treatment established by the new provision.
For this reason, companies should review not only invoices issued after September 16, but also transactions that were still pending payment.
Do all ITBIS withholdings disappear for electronic issuers?
No.
This is one of the most important points companies should keep in mind.
General Rule 02-2026 does not establish a general exemption from all tax withholdings for electronic issuers.
The measure focuses on certain ITBIS withholdings established under General Rule 02-05 and its amendments.
The DGII has also clarified that withholdings established under other regulations may continue to apply. For certain nonprofit organizations, for example, the 100% ITBIS withholding may continue because it is based on a different regulation.
Therefore, before removing a withholding rule from a system, companies must identify its legal basis.
What impact does Rule 02-2026 have on Microsoft Dynamics 365 Business Central?
For companies using Microsoft Dynamics 365 Business Central, this regulatory change may require a review of tax configuration and supplier-related processes.
The automation of withholding calculations should consider variables such as:
- Supplier type.
- Electronic issuer status.
- Type of tax document.
- Type of service.
- ITBIS charged.
- Applicable tax regulation.
- Payment date.
- ITBIS and ISR withholdings as separate rules.
A configuration based only on the type of service could result in errors following the entry into force of Rule 02-2026.
For example, if the system automatically applies a 30% ITBIS withholding to certain professional services, the company should evaluate whether that rule needs to be modified when the supplier is an authorized electronic issuer and the transaction is supported by an e-CF.
For companies using Microsoft Dynamics 365 Business Central, ITBIS withholding for electronic issuers should therefore be considered as part of the tax configuration and accounts payable processes.
What should companies review?
To properly adapt to the new regulation, we recommend reviewing the following processes:
1. Supplier master data
Identify which suppliers are authorized electronic issuers and make sure this information is up to date.
2. Received tax documents
Verify that transactions benefiting from the new treatment are supported by the corresponding e-CF.
3. Withholding rules
Review the rules currently configured in the system and determine which withholdings are based on General Rule 02-05 and its amendments.
4. Accounts payable processes
Make sure withholding calculations are performed correctly before payment.
5. Tax reports
Verify that the changes do not affect the information used for tax returns and reporting.
6. Microsoft Dynamics 365 Business Central configuration
If the company uses Microsoft Dynamics 365 Business Central, review the tax localization and configurations related to ITBIS, suppliers, and electronic tax documents.
The importance of an up-to-date tax localization
Regulatory changes such as General Rule 02-2026 demonstrate that a Microsoft Dynamics 365 Business Central implementation must remain aligned with the tax requirements of the country where the company operates.
Electronic invoicing and changes to withholding rules require tax, accounting, and technology processes to work together.
For companies operating in the Dominican Republic, having an appropriate localization can help reduce manual processes, improve tax control, and facilitate adaptation to regulatory changes.
In this context, ITBIS withholding for electronic issuers is a clear example of how a regulatory change can require adjustments to both accounting procedures and system configuration.
General Rule 02-2026 represents an important change in the management of certain ITBIS withholdings in the Dominican Republic.
Since September 16, 2026, companies must consider the supplier’s status as an electronic issuer and the use of an e-CF when determining whether certain withholdings established under General Rule 02-05 and its amendments should apply.
However, the new provision does not mean that all tax withholdings disappear for electronic issuers.
The key is to analyze each transaction, identify the regulation establishing the withholding requirement, and configure accounting and tax processes correctly.
For companies operating with electronic issuers, ITBIS withholding for electronic issuers should be reviewed as part of the broader tax compliance and Business Central configuration strategy.
Is your Microsoft Dynamics 365 Business Central ready?
Tax changes can become a challenge when processes depend on manual reviews or configurations that are not updated in a timely manner.
At LLB Solutions, we help companies and partners implement and maintain Microsoft Dynamics 365 Business Central solutions adapted to the tax requirements of the Dominican Republic and other Latin American countries.
If you need to assess how General Rule 02-2026 may impact your purchasing, accounts payable, withholding, or electronic invoicing processes, our team can help you evaluate your solution’s configuration.
Be prepared for tax changes and keep your operations aligned with local regulations.
Explore LLB Solutions’ localization solutions for Microsoft Dynamics 365 Business Central and discover how to simplify tax management in the Dominican Republic.
info@llbsolutions.com | Dominican Republic