The 2022-2023 National Survey on Small, Medium and Micro Enterprises (MSMEs) carried out by the Ministry of Industry & Commerce and the Central Bank reveals that only 14.8% of companies in the Dominican operate in the formal sector and are registered with the government and pay taxes.
85% of the estimated 404,034 micro, small and medium-sized enterprises operate in the informality yet they provide 62% of employment nationwide. Of those jobs, 36% are concentrated in Greater Santo Domingo.
Most small businesses are in commerce, food vending or small scope services.
The data is especially important now that the Abinader administration is concentrated on presenting its draft for tax reform. In the past, tax reform has concentrated on measures for big business, leading to the increasing informality in the small business sector.
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El Dia
27 June 2024