The General Directorate of Internal Taxes (DGII), the Dominican Republic’s national tax authority, has outlined the main benefits of Law 30-26, highlighting measures designed to reduce tax burdens, facilitate the settlement of outstanding tax obligations, and encourage private investment amid continued global economic uncertainty.
The new legislation was presented during the conference “Anti-Crisis Plan: Turning Law 30-26 into Decisions”, organized by the Center for Innovation and Professional Training (Capex) of the Santiago Free Zone Corporation. During the event, DGII Director General Pedro Urrutia Sangiovanni explained how the law is expected to improve tax compliance while supporting business competitiveness.
Lower Tax Penalties and Temporary Tax Amnesty
One of the law’s most significant changes is the reduction of late-payment surcharges to 3%. In addition, accumulated penalties may no longer exceed 100% of the original tax liability, making it easier for taxpayers to resolve outstanding obligations.
The legislation also establishes a tax amnesty program for taxpayers whose tax debts have already reached final legal judgment. The program will remain available through December 31, 2026, allowing eligible taxpayers to regularize their obligations through payment arrangements.
According to Urrutia, these measures were designed to help businesses navigate an uncertain international economic environment while promoting greater formalization of economic activity and encouraging new investment.
Property, Corporate, and Small Business Incentives
Law 30-26 also introduces several tax incentives affecting real estate transactions and business operations. For individuals, the capital gains tax on real estate sales will be reduced to 10%. The legislation also provides exemptions for a primary residence, allows proceeds from qualifying property sales to be reinvested within six months, and exempts home sales by individuals aged 65 and older under the conditions established by the law.
Beginning in 2027, the current 1% tax on company incorporation and capital increases will be eliminated. That same year, the mortgage tax will be reduced to 1%, before being completely phased out in 2028.
Microenterprises will also receive tax relief. Legal entities and sole-owner businesses with annual revenue of up to RD$11,985,137.42 will no longer be required to make advance tax payments. The legislation further expands inheritance tax exemptions, establishing general exemptions of up to RD$1 million and up to RD$2 million for direct-line heirs.
Measures to Strengthen Business Formalization
The DGII also announced that it is working with the General Directorate of Customs (DGA), the country’s customs authority, on a new regulation governing the collection of the ITBIS value-added tax from informal importers. The initiative aims to encourage greater formalization within the Dominican economy.
In addition, the tax authority plans to introduce accelerated depreciation rules for industrial machinery and equipment. A forthcoming regulation will specify which assets will qualify for the incentive, providing additional support for productive investment.
Urrutia said the measures contained in Law 30-26 should help businesses strengthen their financial position, reduce exposure to tax contingencies, and improve confidence among investors, shareholders, and financial institutions.
Business Community Welcomes Institutional Dialogue
Miguel Lama, president of the Santiago Free Zone Corporation, said the dialogue between public institutions and the private sector helps companies better understand regulatory changes while creating more favorable conditions for economic growth.
Lama also announced that the Santiago Free Zone Corporation has joined the World Trade Centers Association, becoming the first free trade zone in Central America and the Caribbean and the fourth in Latin America to join the international network.
The event concluded with a tour of the Santiago Free Zone Corporation’s industrial facilities, where DGII officials reviewed the park’s operations and manufacturing capabilities. The presentation was intended to familiarize business leaders with the new opportunities and compliance measures introduced under Law 30-26.