CORPORATE TAX, INTERNATIONAL TAX AND TAX INCENTIVES
CORPORATE TAX, INTERNATIONAL TAX AND TAX INCENTIVES
STERN COMAS advises businesses, investors, developers and entrepreneurial families on tax matters related to commercial activities, investment projects, corporate reorganizations and special tax incentive regimes in the Dominican Republic.
Our practice combines expertise in corporate, real estate, administrative and tax law to assist clients with proceedings before the Dominican Tax Authority (DGII), investment structuring, tax registration updates, corporate reorganizations, and the acquisition of tax benefits and incentives.
We regularly advise domestic and international companies on matters involving tax registration (RNC) updates, mergers, spin-offs, liquidations, business acquisitions, asset transfers, real estate projects, free trade zones and other regulated industries where tax considerations form an essential part of business strategy.
Our experience includes coordinating matters that require simultaneous interaction with the DGII, the Commercial Registry, the Land Registry, regulatory authorities and other public institutions, always seeking practical solutions from a business and wealth management perspective.
SERVICES WE OFFER
DGII Procedures
Assistance with RNC updates, corporate amendments, registrations, certifications, regularizations and other tax-related administrative procedures.
Corporate Reorganizations
Advising on mergers, spin-offs, transformations, liquidations and other corporate transactions with tax implications.
Tax Incentives
Assistance with projects operating under special incentive regimes, including free trade zones, tourism, industrial development and other investment promotion programs.
Foreign Investment
Planning and structuring investments while considering corporate, regulatory and tax aspects.
Real Estate Taxation
Advising on real estate transfers, property taxes, ownership structures and real estate development projects.
Family Businesses and Wealth Planning
Estate and succession planning with a focus on tax efficiency, asset protection and business continuity.
Regulated Industries
Tax advice related to activities in the healthcare, medical infrastructure, energy, manufacturing, technology and other specially regulated sectors.
Tax Controversy and Litigation
Representation in administrative proceedings and litigation involving tax assessments, appeals and tax disputes.
FEATURED ARTICLES
Permanent Establishment Rules in the Dominican Republic: What Foreign Businesses Need to Know
Permanent Establishment (PE) rules determine when a foreign company may become subject to Dominican taxation as a result of its business activities in the country. Although the concept is widely recognized in international tax law, its application in the Dominican Republic must be analyzed within the context of a predominantly source-based tax system, existing tax treaties, and evolving OECD standards concerning business presence, agency relationships, construction projects, and remote work.
This article examines the circumstances under which a foreign enterprise may be considered to have a taxable presence in the Dominican Republic, including construction activities, local representatives, remote workers, contractors, and digital operations. It also explores the impact of recent OECD guidance, BEPS initiatives, transfer pricing considerations, and the country's limited tax treaty network, providing practical guidance for international businesses seeking to identify and manage Dominican tax exposure.
Should a Foreign SaaS Company Incorporate in the Dominican Republic? A Legal and Tax Perspective
The Dominican Republic has become an increasingly attractive destination for technology entrepreneurs, digital service providers, and Software-as-a-Service (SaaS) businesses seeking access to the Caribbean and Latin American markets. However, deciding whether to operate through a foreign entity or establish a Dominican company requires a careful assessment of corporate, tax, regulatory, banking, and operational considerations.
This article analyzes the legal and tax implications of incorporating a SaaS business in the Dominican Republic, including the treatment of locally and foreign-sourced income, corporate taxation, ITBIS considerations, transfer pricing issues, intellectual property ownership, employment matters, and regulatory compliance. It also examines practical factors such as banking access, customer relationships, substance requirements, and long-term business expansion, providing international entrepreneurs with a framework for determining the most appropriate operational structure for their Dominican activities.
RNC Updates and Corporate Changes Before the DGII
Updating the National Taxpayer Registry (RNC) is one of the most important compliance obligations for Dominican companies. Changes in shareholders, directors, corporate names, capital increases or amendments to corporate bylaws often require simultaneous filings before the Chamber of Commerce and the Dominican Tax Authority. Incorrect or incomplete updates may result in banking difficulties, compliance issues and risks during audits or corporate due diligence processes. This article explains the most common situations requiring updates and the mistakes businesses should avoid.
Corporate Dissolution and Liquidation in the Dominican Republic
An orderly business closure requires far more than a corporate resolution. In addition to the necessary corporate approvals, companies must coordinate filings before the Chamber of Commerce, the DGII, financial institutions and other public agencies. The cancellation of the RNC, the disposition of remaining assets and compliance with outstanding tax obligations are often among the most challenging aspects of the process. Proper planning can reduce risk and prevent liabilities that may remain active long after operations have ceased.
Tax Incentives for Investment Projects in the Dominican Republic
The Dominican Republic offers a variety of special regimes designed to promote investment, exports, tourism, border development and other strategic economic activities. However, the true value of these incentives depends not only on the existence of a special law, but also on the proper legal and regulatory structuring of the project. This article analyzes the principal incentives available to investors and developers, as well as the corporate, regulatory and tax considerations that should be evaluated before launching an investment project.