Dominican Republic: Exclusion from certain VAT withholding requirements for electronic issuers; other tax developments

The KPMG member firm in the Dominican Republic prepared a September 2026 report (English and Spanish) on recent tax developments, including guidance from the General Agency for Internal Taxes (DGII) concerning VAT withholding and excise tax amounts, as well as three Superior Administrative Court decisions addressing tax assessments, statutes of limitation, and joint and several liability.

• The DGII issued General Rule No. 02-2026 excluding payments to DGII-authorized electronic issuers supported by an electronic tax receipt (e-CF) from certain VAT withholding requirements under General Rule No. 02-05 and its amendments.
• The DGII issued Resolution No. DDG-AR1-2026-00068 indexing the specific selective consumption tax (ISC) amounts applicable to cigarettes and alcoholic beverages for October through December 2026.
• The Fourth Chamber of the Superior Administrative Court partially annulled an assessment concerning corporate income tax for tax years 2019 and 2020 and directed the DGII to reassess the applicability of the effective tax rate based on the relevant economic activity and income bracket for each tax year.
• The First Chamber of the Superior Administrative Court held that overlapping suspension periods resulting from a tax audit and the COVID-19 state of emergency could not produce a double suspension effect in calculating the statute of limitations, and therefore set aside the corporate income tax assessment at issue as time-barred.
• The Fourth Chamber of the Superior Administrative Court held that the joint and several liability amendments introduced by Law No. 25-24 could apply to an ongoing administrative proceeding and that a party subject to such liability did not need to participate in every stage of the audit of the principal taxpayer, provided applicable legal remedies and defenses remained available.