Methodology - Dominican Republic (2026)

Educational model - not a DGII assessment, not a tax return, not tax advice.

Employee (relacion de dependencia)

Income tax (Impuesto sobre la Renta, ISR) is annual and progressive on the DGII escala, frozen since 2018: 0% up to RD$416,220, 15% to RD$624,329, 20% to RD$867,123 and 25% above. Article 327 of the Codigo Tributario requires an annual inflation adjustment, but successive budget laws have suspended it.
The ISR taxable base is the annual gross minus the employee AFP + SFS contributions: both are deductible before income tax.
Employee TSS (Ley 87-01): AFP pension 2.87% (monthly base capped at RD$464,460, 20x the minimum wage) and SFS health 3.04% (capped at RD$232,230, 10x). Employer TSS: AFP 7.10%, SFS 7.09%, Riesgos Laborales (SRL) about 1.2%, Fondo de Solidaridad Social 0.4% and the 1% INFOTEP training levy.
The national minimum wage used by the TSS for the ceilings is RD$23,223/month from 1 Feb 2026 (TSS Resolucion 01-2025).
Out of scope: the Christmas salary (regalia pascual, ISR-exempt), bonifications, severance, and voluntary additional AFP.

Income tax is annual and progressive on the net taxable profit (revenue minus deductible business expenses), on the same single DGII escala as employment income: 0% up to RD$416,220, then 15%, 20% and 25%.
Social security is voluntary for the self-employed (cotizante voluntario / trabajador independiente): there is no employer to split with. This model charges a voluntary TSS contribution only when requested, at the AFP 2.87% + SFS 3.04% employee shares on a base defaulting to the taxable profit, floored at the minimum wage and capped at the AFP ceiling.
The independent-worker rate split and base rules are less firmly published than the employment side and are flagged provisional.
Out of scope: ITBIS (VAT), the precise independent-worker TSS affiliation rules, partial-year activity, and advance payments (anticipos).