LatinNews Daily - 12 June 2026

*The Dominican Republic’s government led by President Luis Abinader has announced it will submit a new legislative package to the bicameral congress, where the ruling Partido Revolucionario Moderno (PRM) has a majority, which seeks to raise between RD$40bn and RD$50bn (US$685m-US$856m) – through raising taxes or introducing new taxes to offset the surge in oil prices caused by the war in the Middle East. Announcing the proposed measures which would take effect next year, Finance and Economy Minister Magín Díaz said the initiative included four components: pro-growth measures; tax simplification; anti-evasion efforts; and fiscal consolidation. The proposals include a three-percentage-point increase in income tax for three years for firms whose annual revenue exceeds RD$1bn, bringing the rate they would pay to 30%. According to the government this group includes just over 1,000 companies out of the 140,000 that filed corporate income tax returns in 2025, accounting for less than 0.8% of the total. Other proposals include raising the tax on cheques and electronic transfers from 0.15% to 0.2%; a new excise tax on electronic cigarettes and vaping products; higher taxation on casinos and gambling activities; and a US$10 increase in the tax on airline tickets. The government also emphasised that the micro, small and medium-size business sector (MSME) would be exempt from any new fiscal measures, while the threshold for tax-free minimum income would rise from RD$34,685 to RD$39,900, a level considered sufficient to cover the cost of the household consumption basket for the second income quintile. It also highlighted other measures aimed at easing the financial burden on the MSME sector. For instance, advance income tax payments would be eliminated for microenterprises, which the government said accounted for 78% of businesses reporting corporate income tax in 2025, while small businesses would have to make three tax payments per year instead of twelve.

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