The Dominican Republic's Directorate General of Internal Revenue (DGII has published consultation letter G.L. No. 24506 in response to a question regarding withholding tax on dividends paid out of dividend income received as a result of investments in a real estate development trust, which was subject to 10% withholding. The letter provides that dividends distributed to shareholders by a company are not subject to 10% withholding to the extent calculated up to the limit of the company's dividend account in accordance with Article 308 of the Tax Code. Article 308 provides for the 10% withholding on dividends and also includes that the net amount of dividends received that were subject to 10% withholding must be excluded from gross income and recorded in a dividend account. The letter also notes, however, that dividend distributions corresponding to profits on income from other sources that constitute gross taxable income are subject to 10% withholding.

The DGII has also published consultation letter G.L. No. 24572 in response to a question regarding withholding tax on payments made abroad for the import of merchandise in accordance with Article 305 of the Tax Code. The letter provides that payments made abroad for the acquisition of goods that are imported are considered income from a foreign source and are not subject to withholding under Article 305. Payments made abroad for services, however, are considered Dominican source income and subject to withholding at the rate of 27%.