Dominican Republic Tax Update: VAT Withholding, Excise Tax, and Court Rulings

• DGII General Rule No. 02-2026 exempts payments to DGII-authorized electronic issuers supported by an e-CF from certain VAT withholding requirements under General Rule No. 02-05, as amended.
• DGII Resolution No. DDG-AR1-2026-00068 indexed the specific selective consumption tax (ISC) amounts for cigarettes and alcoholic beverages for October–December 2026.
• The Superior Administrative Court partially annulled a corporate income tax assessment for 2019–2020 and required DGII to reassess the effective tax rate using the taxpayer’s economic activity and income bracket for each year.
• The court held that audit and COVID-19 emergency suspension periods could not be double-counted for statute-of-limitations purposes, rendering one corporate income tax assessment time-barred.
• The court also ruled that Law No. 25-24’s joint-and-several liability rules can apply to ongoing administrative proceedings, and the liable party need not join every audit stage if remedies and defenses remain available.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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