Executive Summary
Law 30-26 introduces one of the most significant tax reforms of recent years, incorporating measures aimed at strengthening tax collection, simplifying certain tax processes, and promoting productive investment. The regulation amends provisions of the Tax Code and various special laws, generating important implications for companies, investors, and individuals. Below, we present a summary of the main approved changes and their possible impact on taxpayers.
Implementation Timeline of the Main Measures
| Measure | Application |
|---|---|
| Temporary tax amnesty | Available until December 31, 2026. |
| Transitional 30% corporate income tax (ISR) rate for large taxpayers | Applies during fiscal years 2026, 2027, and 2028 to taxpayers with income equal to or greater than RD$1,000 million. |
| New income tax (ISR) scale for individuals | Effective as of fiscal year 2027. |
| New rules on digital services and payments abroad | Applicable from the entry into force of the Law. |
| 10% tax on real estate capital gains | Applicable from the entry into force of the Law. |
| New provisions on late payment, surcharges, and interest | Applicable from the entry into force of the Law. |
| Exemption from advance payments for micro-enterprises and agricultural taxpayers | Applicable from the entry into force of the Law. |
| Exemption from the Assets Tax for the agricultural sector | Applicable from the entry into force of the Law. |
| Accelerated depreciation for new industrial machinery and equipment | Applicable from the entry into force of the Law. |
| Update of the Simplified Tax Regime (RST) | Applicable from the entry into force of the Law. |
| Gradual reduction of levies on real estate transactions and mortgages | In accordance with the reduction schedule established by the Law. |
Note: Some provisions require additional regulation or application criteria from the Tax Administration. It is recommended to assess each particular case to determine the scope and timing of application of the measures.
Main Changes Under This Law
- Tax amnesty until December 31, 2026.
- Transitional 30% income tax (ISR) rate for taxpayers with income equal to or greater than RD$1,000 million during fiscal years 2026-2028.
- New rules for digital services and payments abroad.
- Tax on real estate capital gains.
- Greater consequences for tax delinquency.
- Tax relief for certain taxpayers.
- Limitation on the accumulation of tax incentives.
- Accelerated depreciation for industrial machinery and equipment.
- Gradual reduction of levies on real estate transactions and mortgages.
Main Measures
Tax Incentive Regime
Taxpayers may opt for the tax regime most convenient for them, provided they meet the corresponding legal requirements. However, the possibility of accumulating two or more incentive regimes on the same economic activity, investment, or transaction is limited.
Tax Debts and Payment Agreements
New conditions are established to access payment agreements, including a minimum initial payment of 15%, the provision of guarantees over the outstanding balance, payment of interest, and compliance with consecutive monthly installments.
Failure to pay three consecutive installments results in the automatic loss of the benefit and enables the Tax Administration to initiate coercive collection proceedings.
Late Payment, Surcharges, and Interest
The Law redefines the treatment of tax delinquency through the automatic application of consequences for non-compliance, without the need for a prior request from the Tax Administration.
Late-payment surcharges of 3% per month or fraction of a month are established, with a maximum accumulation equivalent to 100% of the tax owed.
Likewise, the Law establishes concrete incentives for the voluntary regularization of tax obligations through significant reductions of late-payment surcharges. Taxpayers may benefit from a reduction of up to 90% of the surcharges when they voluntarily rectify before any request from the Tax Administration; 70% when they voluntarily accept an assessment during an audit process; 50% when they pay within the voluntary period following a tax assessment; and 30% when they withdraw administrative or judicial appeals and make immediate payment of the assessed debt. These measures seek to encourage timely compliance and reduce tax litigation.
Temporary Tax Amnesty
An extraordinary regularization mechanism is contemplated, applicable until December 31, 2026, for taxpayers with assessed debts, omitted returns, final debts, or pending administrative and judicial proceedings.
In cases where appeals are underway, the taxpayer must expressly withdraw them in order to access the benefit.
Income Tax (ISR)
For individuals, a new progressive scale is introduced, applicable as of fiscal year 2027, with an exempt bracket up to RD$480,000 and rates of 15%, 20%, 25%, and 27%.
For legal entities, the general rate of 27% is maintained, but a transitional rate of 30% is established during fiscal years 2026, 2027, and 2028 for taxpayers with income equal to or greater than RD$1,000 million.
The Law incorporates tax relief measures through the exemption from advance payments for micro-enterprises and agricultural-sector taxpayers. This provision eliminates the obligation to make advance income tax payments, helping to improve cash flow and reduce compliance costs for these taxpayers.
The Law updates the parameters of the Simplified Tax Regime (RST), expanding and redefining the eligibility criteria for different types of taxpayers. Under the income-based modality, legal entities and sole-proprietor businesses engaged in service activities with annual gross income of up to RD$30 million may participate, as well as independent professionals and agricultural-sector taxpayers with income of up to RD$15 million. Under the purchase-based modality, taxpayers engaged in the trade of goods whose annual purchases and imports do not exceed RD$60 million may participate.
As a result, companies and individuals must assess whether they continue to meet the requirements to remain in or join this special regime.
As part of the update of the tax system in response to new economic and technological trends, the Law expressly incorporates digital assets and crypto-assets within the concept of capital assets. This amendment establishes a clearer legal framework for the tax treatment of transactions carried out with these assets, including the gains that may arise from their transfer, sale, or disposal.
The Law updates the provisions applicable to the deduction of education expenses for individuals, allowing the deduction of duly invoiced expenses from authorized educational entities within the limits established by law. Additionally, expanded benefits are incorporated for education expenses incurred on behalf of persons with disabilities or neurodevelopmental disorders, reinforcing the preferential tax treatment of this type of expenditure.
Incentives for Productive Investment
With the aim of promoting the modernization and expansion of national productive capacity, the reform incorporates an accelerated depreciation regime for certain new industrial machinery and equipment. This mechanism will allow companies to recover their investments for tax purposes over a shorter period, improving the cash flows associated with investment projects and strengthening the incentives for the acquisition of productive assets.
Payments Abroad and Digital Services
One of the most relevant changes in the Law is the expansion of the concept of technical assistance, incorporating services such as consulting, software, cybersecurity, cloud computing, artificial intelligence, data analytics, digital advertising, and information storage.
These provisions could increase the effective cost of contracting international technology services and require the review of existing contracts with foreign providers.
The Law establishes a 15% withholding on certain payments abroad related to software licenses, digital advertising, and data storage, in addition to expanding the concept of technical assistance.
ITBIS (VAT) and Imports
Modifications are introduced regarding the collection of ITBIS from informal importers, as well as adjustments to exempt goods, tax credits, and applicable deductions.
These measures may impact import costs and the mechanisms for recovering the tax paid.
Real Estate Transactions, Estates, and Donations
The Law creates a 10% tax on capital gains derived from the sale of real estate owned by individuals, applicable as a single and definitive payment.
An exemption is contemplated when the proceeds obtained from the sale of the primary residence are reinvested in a new primary residence within the periods established by law.
Capital gains derived from the transfer of the primary residence carried out by individuals over sixty-five (65) years of age remain exempt, in accordance with the conditions established by law.
Likewise, the rules applicable to estates and donations are amended, and the gradual reduction and subsequent elimination of certain levies linked to real estate transactions is provided for.
Regulated Sectors
The Law incorporates specific changes for activities related to fuels, alcohol, tobacco, vaping products, insurance, casinos, lottery agencies, sports betting, and slot machines.
Given the diversity of regulated activities, each sector will require an individual assessment to determine the scope and impact of the new provisions.
Tax Benefits and Relief
The Law incorporates various tax relief measures aimed at promoting investment, strengthening taxpayers' liquidity, and facilitating the regularization of pending tax obligations. These provisions seek to balance revenue-increasing measures with incentives that favor voluntary compliance, economic activity, and the development of strategic sectors of the national economy. Among the main benefits introduced by the Law, the following stand out:
- Temporary tax amnesty until December 31, 2026, for certain taxpayers with obligations pending regularization.
- Significant reduction of late-payment surcharges for taxpayers who voluntarily regularize their tax situation, accept tax assessments early, or withdraw administrative and judicial appeals.
- Exemption from advance payments for micro-enterprises and agricultural-sector taxpayers.
- Exemption from the Assets Tax for agricultural-sector taxpayers.
- Accelerated depreciation regime applicable to certain new industrial machinery and equipment intended for productive activities.
- Tax benefits applicable to the reinvestment of proceeds obtained from the sale of the primary residence in a new primary residence, in accordance with the conditions established by the Law.
- Maintenance of the exemption on capital gains derived from the transfer of the primary residence carried out by individuals over sixty-five (65) years of age, subject to compliance with the corresponding legal requirements.
- Update and expansion of the benefits related to the deduction of education expenses for individuals, including preferential treatments for expenses linked to persons with disabilities or neurodevelopmental disorders.
- Gradual reduction and subsequent elimination of certain taxes and levies associated with real estate transactions, including those linked to the constitution of mortgages.
Main Compliance Risks
- Loss of benefits derived from payment agreements due to non-payment of installments.
- Increase in surcharges and interest for tax delinquency.
- Need to review contracts with foreign providers of digital and technology services.
- Review of structures that currently accumulate multiple tax incentives.
- Adaptation of withholding and compliance procedures for payments abroad.
- Assessment of the impact of the changes on wealth and real estate structures.
Impact by Type of Taxpayer
The magnitude of the impact will depend on the profile and activity of each taxpayer. In general terms:
- Large taxpayers will face the impact of the transitional 30% income tax rate.
- MSMEs must review their eligibility for the Simplified Tax Regime.
- Individuals will be primarily affected by the new income tax scale and the rules applicable to real estate capital gains.
- Companies with international operations must assess the effect of the new withholding rules on digital services and technical assistance.
- Importers and exporters must review the impact of the modifications related to ITBIS, tax credits, and deductions.
- Regulated sectors must specifically analyze the provisions applicable to their economic activity.
Conclusion
Law 30-26 represents a far-reaching tax reform that combines measures aimed at increasing revenue and strengthening tax compliance with mechanisms for administrative simplification and tax relief for certain taxpayers.
Although it incorporates relevant benefits, such as the temporary tax amnesty and the gradual elimination of certain levies, it also introduces new obligations, restrictions, and tax burdens that could significantly impact the cost structure and tax planning of individuals and legal entities.
Given the breadth of the changes introduced by Law 30-26, it is advisable to carry out a comprehensive assessment of current operations, corporate structures, and tax obligations to identify planning opportunities and mitigate compliance risks.
This summary is for informational purposes only and does not constitute legal or tax advice. The application and impact of the provisions contained in Law 30-26 will depend on the particular circumstances of each taxpayer; therefore, it is recommended to obtain professional advice before making decisions based on the measures described.