Dominican Republic: local rules

The Dominican transfer pricing rules are in article 281 of the Codigo Tributario (Ley 11-92), as changed by Ley 253-12, plus articles 281 bis (advance pricing agreements), 281 ter (documentation and penalties) and 281 quater (tax havens). They are detailed in Decreto 78-14, which Decreto 256-21 of 20 April 2021 changed (arts. 5, 7, 10 and 18) from fiscal years starting 1 January 2021. A resident must price deals with a related party at the price independent parties would agree in comparable cases. The rule covers related parties abroad, related residents and any party in a low-tax or no-tax jurisdiction, related or not. Related parties are defined in art. 281, paragraph IV (control, capital, permanent establishments, exclusive agents, 50% of output and similar links). If the price is not arm's length and it lowers Dominican tax or defers it, the DGII can challenge it and adjust it.

Three filings exist. First, every taxpayer with a related party link must file the DIOR (Declaracion Informativa de Operaciones entre Relacionados) each year, even with no related party deals. From fiscal year 2022 it is filed together with the IR-2 corporate return, so it is due 120 days after year end. The DGII's transfer pricing web page still says 180 days, but that was the rule before 2022. The decree, the DGII's January 2026 brochure and its 2026 tax calendar all put the DIOR on the IR-2 date. Second, the local report (transfer pricing study) is due 180 days after the DIOR deadline, so 300 days after year end. Third, a master file is due on the same date from taxpayers that are part of a multinational group and have a control or capital link with the other party. Taxpayers whose related party deals total no more than RD$16,025,436 in the year (the 2026 amount, adjusted each year for inflation) and that have no deals with tax haven residents do not have to prepare the local report or master file, but they still file the DIOR. All filings go through the DGII Oficina Virtual in electronic form. Supporting documents (contracts, invoices, accounts, financial statements, group policies) must be ready on request and be in Spanish.

Five methods are allowed (art. 281, paragraph VII, and Decreto 78-14 art. 7): comparable uncontrolled price, resale price, cost plus, profit split and transactional net margin. The taxpayer first defines the deal and tests comparability on five factors: contract terms, functions, assets and risks, features of the goods or services, economic circumstances and business strategies (Decreto 78-14 art. 5). Internal comparables that need few adjustments come first. Where there are two or more comparables, a range may be built with statistical methods. A price inside the range is accepted. A price outside the range is replaced by the median. For imports and exports of goods with a known quoted price, the comparable price method applies at the quoted price on the day of the customs declaration (imports) or the first loading day (exports). Intra-group services must have been really provided, give a benefit and be priced like services between independent parties.

Late, missing, false or clearly incomplete transfer pricing information breaks a formal duty. It can be fined up to three times the art. 257 penalties (art. 281 ter). Art. 257 sets a fine of 5 to 30 minimum salaries, plus 0.25% of the income declared in the prior year when the breach is about sending information to the DGII (paragraph II). If the documentation was not on time and an adjustment is confirmed, the art. 250 tax evasion penalty also applies, on top of the tax due: a fine of up to twice the tax omitted. The DGII applies art. 281 ter to the country-by-country report as well (Norma General 08-2021, art. 9). Late payment surcharges are separate. Ley 30-26 (June 2026) cut the late payment surcharge to 3% for each month or part of a month, capped at 100% of the tax (art. 252 as amended).

The Dominican Republic has not enacted the OECD GloBE rules as far as could be confirmed on 27 October 2026. Ley 30-26, the June 2026 tax reform, has no income inclusion rule, undertaxed profits rule or domestic minimum top-up tax, and none was found in the Codigo Tributario or in DGII notices. So there is no Pillar Two filing deadline for the Dominican Republic. Check again before relying on this.

The tax year is the calendar year, but a company may choose a year end of 31 March, 30 June or 30 September instead (Codigo Tributario art. 300, paragraph I). Changing it needs DGII approval. The general corporate income tax rate is 27%. Ley 30-26 (June 2026) adds a temporary 30% rate for companies with income of RD$1,000 million or more, for fiscal years 2026 to 2028 only (art. 297, paragraph II, as amended). The IR-2 is due 120 days after year end (Reglamento 139-98, art. 111). The DGII can extend it for up to two months on a reasoned request made at least 15 days before the due date, and interest applies (Codigo Tributario art. 329). Country-by-country reporting exists: Norma General 08-2021 requires a report from Dominican resident ultimate parents (and some other members) of groups with consolidated revenue of RD$38,800 million or more, from fiscal year 2022, due 12 months after the group's year end. An advance pricing agreement can be requested from the DGII before the deals take place (art. 281 bis). Once signed, it covers the current year and the next three years. It can also cover up to two years that ended between the request and the signing.