Key Highlights
- Dominican authorities unveiled an ambitious economic reform initiative targeting 40–50 billion pesos in additional government revenue
- Corporations with annual revenues exceeding 1 billion pesos will see a 3-percentage-point tax increase, bringing their rate to 30%
- Gaming establishments and gambling operations will encounter increased tax obligations, with specific rates pending announcement
- Proposed legislation would transform the National Lottery into an autonomous government agency with comprehensive gambling oversight authority
- Additional revenue measures include levies on vaping products, electronic fund transfers, and air travel
Government Launches Comprehensive Economic Reform Targeting Large Enterprises and Gaming
Dominican authorities have introduced an extensive fiscal reform initiative intended to strengthen government finances while safeguarding economically vulnerable populations.
According to Finance Minister MagĂn DĂaz, the program seeks “a more sustainable state of public finances and the protection of the most vulnerable sectors.” Officials anticipate generating between 40 and 50 billion Dominican pesos through these reforms.
The initiative rests on four foundational elements: economic growth incentives, tax code streamlining, tax evasion prevention, and fiscal stabilization.
The primary objective centers on maintaining consistent public expenditure levels, enabling continued investment in infrastructure projects and social welfare programs.
Temporary Surcharge Imposed on Major Business Entities
The reform’s centerpiece involves implementing a limited-duration additional levy on Corporate Income Tax for high-earning businesses.
Companies generating annual revenues surpassing 1 billion pesos will face an additional 3-percentage-point assessment above current rates, elevating their total obligation to 30%. This affects approximately 0.8% of all registered active businesses nationwide.
This surcharge remains effective until December 2028.
Supplementary revenue-generating provisions include increasing electronic transfer check fees from 0.15% to 0.2%, implementing a selective consumption levy on vaping devices, and adding a $10 charge to airline ticket prices.
Gaming Industry Confronts Enhanced Tax Structure
Authorities have indicated plans for elevated taxation on casino operations and gambling-related enterprises, though precise rate schedules remain undisclosed.
These actions form part of a comprehensive initiative to formalize and establish regulatory frameworks within the Dominican Republic’s gambling sector.
New legislative proposals, championed by Senator Pedro Tineo, aim to restructure the National Lottery as a completely independent government entity.
The proposal envisions removing the National Lottery from Finance Ministry jurisdiction, establishing it as the principal regulatory authority for lottery operations, sports wagering, casino gaming, and electronic gambling platforms throughout the nation.
Presently, the National Lottery divides supervisory responsibilities with the Directorate of Casinos and Games of Chance.
Upon approval, the restructured organization would assume full responsibility for inspection, regulation, and enforcement across all gambling sectors.
These reforms build upon the government’s implementation of the National Regularization Plan for lottery establishments and wagering venues under Decree 197-26.
Tax collection and legal compliance under this framework fall under the jurisdiction of the General Directorate of Internal Taxes.
National Lottery Administrator TeĂłfilo Tabar has assumed the temporary leadership position for the regularization initiative.
Comprehensive details regarding casino tax modifications are anticipated as the legislative process advances through subsequent stages.
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