DOMINICAN REPUBLIC Trends and Developments Contributed by: Luis Miguel Pereyra, Pereyra & Asociados
Selective excise taxes: higher tax on alcohol and sugary drinks A central thrust of 2026 revenue measures is selective taxation, which aims to meet fiscal needs and shape consumption patterns. Alcohol The excise tax is increasing to DOP840 per litre of absolute alcohol, keeping pace with inflation as per the Consumer Price Index (CPI). The ad valorem excise tax is being raised modestly, from 10% to 11%. These changes will elevate tax-inclusive prices and put a premium on traceability and documentation across production, import and retail. Alcohol indus - try players should expect closer alignment between inventories, eCF documentation and excise declara - tions. Sugary beverages A tiered excise tax tied to added sugar content is being introduced (eg, COP0.58 per 100 ml for prod - ucts with 5.01–10 grams of sugar per 100 ml, and COP1 per 100 ml for products with more than 10.01 grams of sugar per 100 ml). This tiering will neces - sitate SKU-level analytics and potentially drive recipe reformulations or pack size adjustments to reclassify products into lower sugar tax bands, preserve margins and respond to consumer shifts. For both categories, companies should plan for pack - aging and labelling reviews to ensure sugar content transparency and regulatory compliance. Finance teams must run pricing simulations that incorporate excise movements, elasticity assumptions and com - petitive positioning. Overlooking the excise tiers could be costly in terms of both margins and compliance penalties. Small business relief and simplification: promise and pragmatic timing Draft reforms discussed eliminating or reshaping income tax advance payment ( anticipos ) for micro and small firms, moving towards simplified regimes and phased payments that reduce cash flow strain and encourage formalisation. While some of these initia - tives were withdrawn in 2024 for further consensus
What the DGII expects – and why it matters The DGII expects real-time validation of electronic tax receipts (eCF), ten-year retention and robust trace - ability of transactions, and end-to-end oversight that reduces evasion through both data integrity and auto - mated matching. The DGII has already adjusted rules as implementa - tion lessons emerge (eg, extending certain timelines and issuing operational clarifications). The overarching implication is unmistakable: by 15 May 2026, all small - er businesses must ensure their e-invoicing solutions are certified, integrated and operational. This includes selecting a certified provider (or adopting the DGII’s free e-invoicer), mapping processes, integrating the enterprise resource planning (ERP) or accounting sys - tem, and establishing the controls needed to ensure receipt validation and compliant archiving. ITBIS (VAT): the rate remains at 18% but administration is being tightened The standard consumption tax rate remains 18%. Pro - posals debated in 2024 suggested renaming ITBIS ( impuesto sobre transferencia de bienes industrializa- dos y servicios ) as IVA ( impuesto al valor agregado ) and broadening the tax base while protecting essen - tial goods and services. The signal for 2026 is conti - nuity: the 18% rate holds, but authorities will lean on better data and broader coverage, especially as eCF data becomes universal, and digital platform services are progressively captured under the consumption tax umbrella. Thus, what will change is the rigour of administra - tion rather than the headline rate. Tighter matching between eCF sales, monthly tax on the transfer of industrialised goods and services ( impuesto sobre transferencia de bienes industrializados y servicios – ITBIS) returns and the critical information forms 606/607 can be expected. With fewer blind spots, firms will need to minimise discrepancies and adopt automated variance checks. This is not just a com - pliance step – it is a risk management measure that can reduce audit exposure and uncover process inef - ficiencies.
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