Law No. 30-26 on Measures to Promote Economic Growth, Tax Simplification and Mitigation of the International Crisis
Law 30-26 introduces one of the most significant tax reforms in recent years, incorporating measures aimed at strengthening tax collection, simplifying certain tax processes, and promoting productive investment. The legislation modifies provisions of the Tax Code and various special laws, generating important implications for businesses, investors, and individuals. Below, we present a summary of the main changes approved and their potential impact on taxpayers.
Key Changes in this Law
Tax amnesty until December 31, 2026.
Transitional income tax rate of 30% for taxpayers with income equal to or greater than RD$1 billion during the 2026-2028 fiscal years.
New rules for digital services and payments abroad.
Tax on capital gains from real estate.
Stricter penalties for tax delinquency.
Tax relief for certain taxpayers.
Limitation on the accumulation of tax incentives.
Accelerated depreciation for machinery and industrial equipment.
Gradual reduction of taxes on real estate transactions and mortgages.
Key Measures
Tax Incentive Regime
Taxpayers may choose the tax regime that is most advantageous to them, provided they meet the corresponding legal requirements. However, the possibility of combining two or more incentive regimes for the same economic activity, investment, or transaction is limited.
Tax Debts and Payment Agreements
New conditions are established for accessing payment agreements, including a minimum initial payment of 15%, the provision of guarantees on 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 authorizes the Tax Administration to initiate enforced collection proceedings.
Late Payments, Surcharges, and Interest
The Law redefines the treatment of late payments by automatically applying penalties for non-compliance, without the need for prior notification from the Tax Administration.
Late payment surcharges of 3% per month or fraction thereof are established, with a maximum accumulation equivalent to 100% of the tax owed.
Likewise, the Law establishes specific incentives for the voluntary regularization of tax obligations through significant reductions in late payment surcharges. Taxpayers may benefit from a reduction of up to 90% of surcharges when they voluntarily rectify their situation before any request from the Tax Administration; 70% when they voluntarily accept a determination during an audit; 50% when they pay within the voluntary payment period following a tax determination; and 30% when they withdraw administrative or judicial appeals and make immediate payment of the determined debt. These measures aim to promote timely compliance and reduce tax litigation.
Temporary Tax Amnesty
An extraordinary regularization mechanism is available until December 31, 2026, for taxpayers with outstanding debts, omitted tax returns, final tax payments, or pending administrative and judicial proceedings.
In cases where appeals are pending, the taxpayer must expressly withdraw them to qualify for the benefit.
Income Tax (ISR)
For individuals, a new progressive tax scale is introduced, applicable from the 2027 fiscal year, with an exemption bracket up to RD$480,000 and rates of 15%, 20%, 25%, and 27%.
For corporations, the general rate of 27% is maintained, but a transitional rate of 30% is established for the 2026, 2027, and 2028 fiscal years for taxpayers with income equal to or greater than RD$1 billion.
The Law incorporates tax relief measures by exempting micro-enterprises and taxpayers in the agricultural sector from advance payments. 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 proprietorships engaged in service activities with annual gross income of up to RD$30 million, as well as independent professionals and taxpayers in the agricultural sector with income of up to RD$15 million, are eligible. Under the purchase-based modality, taxpayers engaged in the trade of goods whose annual purchases and imports do not exceed RD$60 million are eligible.
Consequently, companies and individuals must assess whether they continue to meet the requirements to remain in or join this special regime.
As part of updating the tax system to reflect new economic and technological trends, the Law expressly incorporates digital assets and crypto assets within the concept of capital assets. This modification establishes a clearer legal framework for the tax treatment of transactions carried out with these assets, including any gains that may be generated from their transfer, sale, or disposal.
The Law updates the provisions applicable to the deduction of educational expenses for individuals, allowing the deduction of expenses duly invoiced by authorized educational institutions within the limits established by law. Additionally, it incorporates expanded benefits for educational expenses incurred on behalf of individuals with disabilities or neurodevelopmental disorders, reinforcing the preferential tax treatment of these types of expenditures.
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 in a shorter period, improving cash flows associated with investment projects and strengthening incentives for the acquisition of productive assets.
Payments Abroad and Digital Services
One of the most significant changes in the Law is the broadening of the concept of technical assistance, incorporating services such as consulting, software, cybersecurity, cloud computing, artificial intelligence, data analytics, digital advertising, and data 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 tax on certain payments abroad related to software licenses, digital advertising, and data storage, in addition to expanding the concept of technical assistance.
ITBIS and Imports
Modifications are being introduced regarding the collection of ITBIS (Value Added Tax) for informal importers, as well as adjustments to exempt goods, tax credits, and applicable deductions.
These measures may impact import costs and mechanisms for recovering the tax paid.
Real Estate Transactions, Inheritances, and Donations
The Law establishes a 10% tax on capital gains derived from the sale of real estate owned by individuals, payable as a single, final payment.
An exemption is provided when the proceeds from the sale of a primary residence are reinvested in a new primary residence within the timeframes established by law.
Capital gains derived from the transfer of a primary residence by individuals over sixty-five (65) years of age remain exempt, in accordance with the conditions established by law.
The rules applicable to inheritances and donations are also modified, and the gradual reduction and subsequent elimination of certain taxes related to real estate transactions are foreseen.
Regulated Sectors
The Law incorporates specific changes for activities related to fuels, alcohol, tobacco, vaping products, insurance, casinos, lottery outlets, 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 outstanding tax obligations. These provisions seek to balance revenue-raising measures with incentives that encourage voluntary compliance, economic activity, and the development of strategic sectors of the national economy. Among the main benefits introduced by the Law are the following:
Temporary tax amnesty until December 31, 2026, for certain taxpayers with outstanding obligations.
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 taxpayers in the agricultural sector.
Exemption from the Asset Tax for taxpayers in the agricultural sector.
Accelerated depreciation regime applicable to certain new industrial machinery and equipment intended for productive activities.
Tax benefits applicable to the reinvestment of proceeds from the sale of a primary residence in a new primary residence, in accordance with the conditions established by law.
Maintenance of the exemption on capital gains derived from the transfer of a primary residence 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 educational expenses for individuals, including preferential treatment for expenses related to people with disabilities or neurodevelopmental disorders.
Gradual reduction and subsequent elimination of certain taxes and levies associated with real estate transactions, including those related to the establishment of mortgages.
Key Compliance Risks
Loss of benefits derived from payment agreements due to missed payments.
Increased surcharges and interest for late tax payments.
Need to review contracts with foreign providers of digital and technological services.
Review of structures that currently accumulate multiple tax incentives.
Adaptation of withholding and compliance procedures for payments abroad.
Evaluation of the impact of changes on asset and real estate structures.
Impact by Taxpayer Type
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.
SMEs should review their eligibility for the Simplified Tax Regime.
Individuals will be primarily affected by the new income tax scale and the rules applicable to capital gains from real estate.
Companies with international operations should evaluate the effect of the new withholding rules on digital services and technical assistance. Importers and exporters should review the impact of the changes related to ITBIS (Value Added Tax), tax credits, and deductions.
Regulated sectors should 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 collection and strengthening tax compliance with administrative simplification mechanisms and tax relief for certain taxpayers.
While it incorporates significant benefits, such as a temporary tax amnesty and the gradual elimination of certain taxes, 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 conduct a comprehensive evaluation 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 specific circumstances of each taxpayer; therefore, it is recommended to obtain professional advice before making any decisions based on the measures described.
