DR1 Daily News - Dominican Republic

Omar Fernández / Acento

National District Senator Omar Fernández, representing the opposition Fuerza del Pueblo party, has officially reintroduced a legislative proposal to eliminate the mandatory Income Tax (ISR) advance payment, locally known as el anticipo, for micro, small, and medium-sized enterprises (MSMEs).

The bill seeks to overhaul a controversial tax mechanism that requires businesses to pay taxes based on projected future earnings rather than actual realized profits. Fernández argues that this system “permanently decapitalizes” emerging businesses, forcing them to divert critical liquidity away from operations and investment to meet government mandates.

According to the senator, the burden of pre-paid taxes creates a precarious financial environment for the backbone of the Dominican economy. Data cited in the proposal highlights the following:• Market...