Dominican Law 30-26: Key Tax Changes for Businesses

Law 30-26 of the Dominican Republic represents one of the most significant tax reforms for businesses operating in the country. Its objective is to promote economic growth, simplify various tax processes, and strengthen the sustainability of public finances through changes to taxes, withholding requirements, advance tax payments, and other fiscal obligations.

For organizations using Microsoft Dynamics 365 Business Central, understanding these changes is essential to maintaining regulatory compliance and preparing financial processes for the new legal requirements.

Key Changes Introduced by Law 30-26 in the Dominican Republic

The reform introduces measures that will be implemented gradually between 2026 and 2029. Some of the most important changes include:

Changes to Income Tax (ISR)

Beginning with fiscal year 2027, the personal income tax brackets will be updated by increasing the tax-exempt threshold and introducing a new 27% tax rate for higher-income taxpayers.

For legal entities, the general corporate income tax rate remains at 27%. However, during fiscal years 2026, 2027, and 2028, companies with annual revenues equal to or greater than RD$1 billion will be subject to a temporary 30% tax rate.

New Withholding Tax Rates

Effective July 1, 2026, new withholding tax rates apply to several transactions, including:

• Professional service fees
• Rental payments
• Prize payments
• Payments made by government entities
• Royalties and licensing rights
• Software licenses and certain digital services paid abroad

These changes make it advisable to review tax configurations within Business Central to ensure the accurate calculation of tax obligations.

Benefits for Small and Micro Businesses

The law also introduces measures designed to simplify tax compliance for small businesses, including:

• A new advance tax payment calculation scheme
• Exemption from advance tax payments for microenterprises
• Updates to the Simplified Tax Regime (RST)
• Accelerated depreciation for certain productive assets

These initiatives are intended to encourage investment while reducing the administrative burden on smaller businesses.

Other Important Tax Changes

The reform also includes modifications related to:

• Taxes on checks and electronic transfers
• Selective Consumption Tax (ISC)
• Inheritance and gift taxes
• Company incorporation
• Mortgage registration and recording
• Departure tax

Each of these measures has specific implementation dates established by the General Directorate of Internal Taxes (DGII).

Implementation Timeline

The new provisions do not become effective on a single date. Some measures took effect immediately after the law was enacted, while others will be implemented during:

• July 2026
• Fiscal Year 2026
• Fiscal Year 2027
• Fiscal Year 2028
• Fiscal Year 2029

For this reason, businesses should review their financial and tax processes in advance to ensure compliance with each requirement as it becomes effective.

How Can Your Business Prepare?

In addition to understanding the new legal requirements, organizations should evaluate whether their business processes and technology solutions are prepared to adapt to the new tax regulations.

Companies using Microsoft Dynamics 365 Business Central can rely on localization solutions that facilitate tax process updates as regulations evolve in each country.

At LLB Solutions, we develop localization solutions for multiple Latin American countries, helping organizations comply with local tax regulations more efficiently within Business Central.

Understanding Law 30-26 of the Dominican Republic will help businesses anticipate tax changes, reduce compliance risks, and adapt their administrative and financial processes accordingly. Having technology solutions that are ready to respond to regulatory updates will be essential for navigating this transition efficiently.

Learn More

For the complete legal text and official implementation schedule, please refer to the following official sources:

• General Directorate of Internal Taxes (DGII): https://dgii.gov.do
• Government of the Dominican Republic: https://presidencia.gob.do

Does Your Company Use Microsoft Dynamics 365 Business Central in the Dominican Republic?

At LLB Solutions, we help businesses adapt their Business Central solution to the changes introduced by Law 30-26 of the Dominican Republic through a localization designed to comply with the country’s current tax regulations.

Contact us today to learn how we can help your organization stay compliant with the latest tax requirements.

info@llbsolutions.com | Dominican Republic