Taxes In The Dominican Republic

If you are earning income in the DR, you’ll be liable for income tax on a scaled basis according to these four tax bands: 0%, 15%, 20%, and 25%. The zero rate applies up to 409,281 DR pesos, which is almost US$7,000 at today’s exchange rate. The 25% bracket kicks in at 852,667 DR pesos, or about US$15,000 today.

The taxation system is flexible, and few people pay tax—it is thought only about 8% of residents do so. The minimum you must earn within the country is 416,220 Dominican pesos a year or a monthly salary of 34,685 Dominican pesos.

In U.S. dollars that’s US$7,178 annually or US$598 a month. This means, given the wages in the Dominican Republic, that not many pay tax.

The rate is 15% on any amount of income over the above amounts, and once it goes up to US$13,000 a year, you pay 20% on the amount over that.

Run a business in the DR and basically every expense you can prove with a factura fiscal is deductible.