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Dominican Republic Budget for 2021 Includes Special Taxes to Increase Revenue

14 October 2020

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Proposed Changes

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Dominican Rep

The Dominican Republic has published the draft Budget for 2021. Some of the main tax-related measures of the budget include the introduction of new special taxes to increase revenue, including: A temporary contribution of 8% on the "extraordinary profit" of legal entities earned in 2020, which is the amount of profit reported in the return filed in 2021 (for 2020) that exceeds a 5% increase in profit as compared to the previous year (not applicable to new companies whose second fiscal year is 2020); A special temporary 3% tax on transactions in foreign currency using credit and debit cards, as...