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Dominican Rep

1 July 2021

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Dominican Republic Begins Collection of Solid Waste Management Contribution in July 2021

The Dominican Republic's Directorate General of Internal Revenue (DGII) has announced that the payment of a new Contribution for the Management and Co-processing of Solid Waste (CRS) begins in July 2021. The special mandatory contribution was introduced by the General Law on Integral Management and Co-processing of Solid Waste (Law no. 225-20), which provides that the contribution is due by every legal person domiciled in the Dominican Republic, regardless of whether they are public or private, whether or not they have operations, and whether or not they receive benefits. The required contribution amount is based on income according to the following scale:

  • DOP 0 to 1,000,000.00 - DOP 500 contribution
  • DOP 1,000,000.01 to 8,000,000 - DOP 1,500 contribution
  • DOP 8,000,000.01 to 20,000,000 - DOP 5,000 contribution
  • DOP 20,000,000.01 to 50,000,000 - DOP 30,000 contribution
  • DOP 50,000,000.01 to 100,000,000 - DOP 90,000 contribution
  • DOP 100,000,000.01 and over - DOP 260,000 contribution

The contribution is settled annually, with the declaration completed automatically with the submission of the annual corporate tax return (IR-2) or other relevant affidavit/return depending on the entity type. For corporate taxpayers, the deadline is the same as the return deadline, 120 days after the year-end. Different deadlines apply for other taxpayers, including small taxpayers under the simplified tax regime (RST) and taxpayers in the agricultural sector.

Note, in addition to the new contribution requirement, Law no. 225-20 also introduced certain incentives for taxpayers engaged in waste management activities from 1 January 2021. These include 5-year exemptions from corporate income tax, withholding tax on dividends, and corporate tax on assets, as well as an exemption from the tax on the transfer of industrialized goods and services (ITBIS) on machinery and equipment required for waste management activities.

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