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Dominican Republic: Excise tax updates and court decisions (March 2026)

Indexation of excise tax on cigarettes and alcoholic beverages; court decisions on income tax exemptions, statute of limitations, and customs valuation procedures.

april 22, 2026

The General Agency for Internal Taxes (DGII) has announced updated excise tax amounts, and the Superior Administrative Court has issued several tax-related decisions addressing income tax exemptions for ceased operations, the right to judicial review even without a formal administrative act, and procedural requirements in customs assessments.

  • The General Agency for Internal Taxes (DGII) announced new specific amounts for the excise tax (ISC) applicable from April to June 2026:
    • ISC for cigarettes: RD$64.14 per pack of 20 units and RD$32.07 per pack of 10 units.
    • ISC for alcoholic beverages: RD$758.26.
  • Decisions from the Superior Administrative Court (TSA) include:
    • Advance income tax exemption: The TSA overturned a DGII resolution, granting an advance income tax exemption to a taxpayer who ceased operations and provided sufficient evidence. The court emphasized that administrative discretion must not be arbitrary.
    • Statute of limitations and judicial protection: The TSA held that the absence of a formal administrative act does not prevent taxpayers from seeking judicial determination of statute of limitations issues, reinforcing effective judicial protection.
    • Customs assessment and due process: The TSA overturned a customs assessment because the DGA failed to provide the mandatory 10-day reasonable doubt response period required by Decree No. 36-11, reaffirming the importance of procedural guarantees.

Read a March 2026 report in English and Spanish prepared by the KPMG member firm in the Dominican Republic
 

For more information, contact a KPMG tax professional in the Dominican Republic:

Carlo Mercedes | cmercedes@kpmg.com

Dario Arias | darias@kpmg.com

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