The 27% income tax rate imposed on businesses in the Dominican Republic is hindering competitiveness and deterring foreign investment, according to the Regional Center for Sustainable Economic Strategies (Crees). The organization advocates for a transformation of the fiscal environment to promote a simpler, more neutral, and competitive tax system.
“The latest available data shows that companies in the Dominican Republic face a 27% corporate income tax rate, significantly surpassing the average of countries within the Organization for Economic Co-operation and Development (OECD),” Crees stated in a post on the social media platform X. The OECD’s average stands at 21.5%, with the difference posing “a significant challenge to the country’s competitiveness in a world where nations continuously strive to attract investment and create more economic opportunities.”
Crees highlights that, unlike the Dominican Republic, numerous OECD countries have reduced corporate tax rates in recent years to enhance their business climate and stimulate economic growth. The organization argues that this situation has led to an excessive reliance on tax exemptions, which do not address underlying issues and introduce further economic distortions.
“To effectively compete with nations that already offer robust institutional frameworks, it is necessary to transform the fiscal environment and promote a simpler, more neutral, and competitive system,” Crees asserted.
To create a business-friendly environment, Crees suggests prioritizing structural reforms and implementing a competitive tax regime. The economic think tank and advisory service recommends that the government seize the opportunity presented by their proposed tax transformation initiative. The proposal seeks to encourage investment and contribute to the overall well-being and economic development of the country.
“In this context, the tax transformation proposal by the Regional Center for Sustainable Economic Strategies (Crees) represents an option worth considering to move towards a more balanced and economically favorable fiscal structure,” Crees concluded.
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7 Dias
13 March 2025