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Dominican Republic: Inflation adjustments, beneficial ownership obligations, and VAT on foreign exchange differences

April 2026 developments

may 19, 2026

The General Agency for Internal Taxes issued inflation adjustments and reiterated ultimate beneficiary owner reporting obligations, and the Constitutional Court issued a decision regarding VAT on foreign exchange differences.

  • The General Agency for Internal Taxes (DGII) on April 15, 2026, issued Resolution No. DDG-AR1-2026-00003, updating inflation adjustment multipliers and exchange rates for the treatment of foreign exchange differences for the March 2026 fiscal year-end. The inflation adjustment multiplier was set at 1.0463. The exchange rates for foreign exchange differences were established at DOP/US$60.2552 and DOP/€69.2814.
  • The DGII on April 17, 2026, issued Notice No. 04 26 reiterating that legal entities and entities without legal personality are required to identify and maintain updated information regarding their ultimate beneficiary owners (UBOs). This identification must occur upon registration or updating corporate information in the National Taxpayer Registry and upon the filing of the corporate income tax return. The reporting obligation applies to natural persons holding a direct or indirect ownership interest of 20% or more, or those exercising effective control. Individual limited liability companies and natural persons are not subject to this obligation.
  • The Constitutional Court on April 13, 2026, issued a decision (Judgment No. TC/0182/26) confirming the constitutionality of a judicial decision regarding the tax treatment of foreign exchange differences. The dispute involved a taxpayer arguing that applying VAT to foreign exchange differences from foreign currency transactions constituted an illegal tax. The tax authority argued that the foreign exchange differences must be analyzed within the context of the underlying VAT-subject transactions, and that VAT exemptions applied exclusively to financial services rendered by regulated financial intermediation entities. The court held that confirming the tax adjustments did not create a new tax, but applied the existing tax framework.

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

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