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Dominican Republic: Tax developments include public consultation on tax reforms, construction-sector guidance, and court decisions (July 2026)

July 2026 developments include proposed tax reform measures, construction-sector compliance guidance, and court decisions on tax disputes.

august 20, 2026

The KPMG member firm in the Dominican Republic has prepared its July 2026 tax updates report (English and Spanish), focusing on the following developments:

  • Public consultation on tax reform measures: The General Directorate of Internal Taxes (DGII) opened a public consultation on three draft rules addressing the temporary tax amnesty enacted by Law No. 30-26, accelerated depreciation, and the tax treatment of software transactions. The consultation is open through September 15, 2026.
  • Inflation adjustment and exchange-rate guidance: The DGII published guidance for taxpayers with a June 2026 fiscal year-end, including the applicable inflation adjustment multiplier and exchange rates for foreign exchange difference calculations.
  • Anti-money laundering (AML) obligations for construction companies: The DGII clarified that only construction companies engaged in real estate purchase, sale, promotion, or intermediary activities will be classified as “non-financial obligated entities” for AML and counter-terrorism financing purposes.
  • New withholding requirements for the construction sector: The DGII updated General Rule No. 07-2007 to incorporate changes introduced by Law No. 30-26, including revised income tax and ITBIS (tax on the transfer of industrialized goods and services) withholding requirements applicable to construction-sector payments and services.
  • Enforcement of filing deadlines: The Administrative Superior Court reaffirmed that statutory deadlines for challenging tax assessments are strictly enforced and that late appeals are inadmissible.
  • Taxpayer burden of proof: The Administrative Superior Court held that taxpayers must provide sufficient objective evidence to rebut tax adjustments made by the tax administration, confirming that unsupported explanations and internally prepared schedules generally are insufficient.

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