taxation

Hi, My husband is going to Punta Cana to work for three months and I'm very curious as to what the Income Tax rate is in the Dominican Republic. Thanks. Brenda

Depends on the character of his job and the type of contract he signed. If he is a consultant, he will probably be deducted 10% from his pay check.

For individuals: income below RD$90,720.00 pesos per annum is exempt from income tax; from RD$90,720.01 to RD$151,200.00 pesos, the tax rate is 15%; from RD$151.200.01 to RD$226,800.00 pesos, increases to 20%; above RD$226,800.01 pesos pays 25%. These tax brackets are adjusted for inflation every year in January. The 1999 adjustment should be announced this week.

For corporations: flat tax of 25% of net income. There is no double taxation on dividends received by shareholders.

The Dominican Tax Code, enacted in 1992, is a simple and straightforward legal instrument from which some First World countries could learn.