Here is the scenario and if you are running a business here in the DR, I would love to hear from you! On a side note I am waiting to hear from a DR tax accountant about this question….but as all things go…..who knows how long I will be waiting! (SARC). Question: If I have a “registered business” in the DR, and hire Dominicans (engineering types), income taxes along with all the other requirements like pensions, health, x-mas bonus, severance, etc. are to be paid by the “employer”. The law reads, as I understand it, that ITBIS tax (18%) is paid on “goods AND services”. Does this apply to employees? The income tax rate for the folks hired will be 25% because the Income exceeds the maximum income tax rate. Does anyone know if an additional ITBIS tax is added to this either by the employee of the employer? Make sense? Thanks for your thoughts!