Starting a business in the Dominican Republic involves not only complying with legal and tax obligations, but also understanding the benefits that legislation offers to newly established companies. These incentives aim to promote formalization, encourage investment, and strengthen business sustainability during the early stages.

Main tax benefits

1. Partial income tax (ISR) exemptions: Depending on the type of company and sector, new businesses may access ISR reductions during their first years of operation, facilitating financial consolidation.

2. Reduction of ITBIS rates: Some productive sectors or priority services may qualify for reduced ITBIS rates, promoting competitiveness and business growth.

3. Incentives for investment in fixed assets: The acquisition of machinery, equipment, or technology for the company may benefit from tax deductions, accelerating depreciation and optimizing the tax burden.

4. Special programs for free zones or strategic sectors: Companies located in free trade zones or operating in strategic sectors may access additional exemptions and administrative facilities.

Recommendations to take advantage of the benefits

• Specialized advisory: rely on an accounting team that can identify available incentives based on the type of company and sector.

• Strict compliance with obligations: keep accounting and tax records up to date to maintain eligibility for benefits.

• Financial planning: integrate tax incentives into the company’s investment plan and cash flow.

• Formal company registration: compliance with registration at the DGII, the Chamber of Commerce, and other relevant entities ensures access to these benefits.

Understanding and leveraging tax benefits can result in significant savings and a stronger foundation for business growth. At Harbest, we support entrepreneurs and new companies throughout the entire process, ensuring that every tax opportunity is managed correctly, ethically, and in accordance with current legislation.

Fuentes:

• Dirección General de Impuestos Internos (DGII) – Legislación y beneficios fiscales para empresas
• Cámara de Comercio y Producción de República Dominicana