Dominican Republic Withholding Calculator 2026
Last updated: January 2026
ISR withholdings (retenciones) in the Dominican Republic for 2026 apply to various income types as administered by the DGII. Key withholding rates: payments to individuals for services 10%, rent payments 10%, prizes and awards 15%, dividends 10%, interest to individuals 10%, payments to non-residents 27%. Companies designated as withholding agents must withhold and remit ISR on these payments. Withholdings function as advance tax payments — recipients can credit them against their annual ISR liability. The DGII maintains the registry of withholding agents. For employment income, the regular progressive ISR brackets (15%-25%) apply as monthly withholdings rather than fixed rates.
FAQ
What are the ISR withholding rates in the DR?
Key rates: services to individuals 10%, rent 10%, prizes/awards 15%, dividends 10%, interest to individuals 10%, non-resident payments 27%. Employment income uses progressive brackets (15%-25%) rather than a fixed withholding rate.
Who must withhold ISR in the Dominican Republic?
Companies designated as withholding agents by the DGII must withhold ISR on payments to suppliers, contractors, landlords, and other beneficiaries. The registry of withholding agents is maintained by the DGII. Individual employers withhold from employee salaries.
How are withholdings reported to the DGII?
Withholding agents file Form IT-1 (monthly withholding declaration) to the DGII by the 10th of the month following the withholding period. The declaration details each withholding by beneficiary type, amount, and rate applied.
Can withholdings be credited against annual ISR?
Yes. Withholdings are advance payments of ISR. When filing the annual tax return, the taxpayer credits all withholdings suffered during the year against their total ISR liability. If withholdings exceed the tax owed, a refund can be requested.
What is the withholding rate for non-residents?
Payments to non-residents are subject to 27% withholding on gross amount. This applies to services, royalties, interest, rent, and other income sourced in the DR. Tax treaties may reduce this rate for residents of treaty countries.