Employer Tax Contributions

Tax Type	Rate	Base
Health Insurance (SFS)	7.09%	Employee's salary (up to a max base)
Pension Fund (AFP)	7.10%	Employee's salary (up to a max base)
Occupational Risks (SRL)	1.2% - 2.2%	Employee's salary
INFOTEP	1.00%	Total payroll

Filing & Compliance

• Monthly Income Tax (Form IR-17/IR-3) is due by the 15th of the following month.
• Monthly social security contributions are due by the 3rd working day of the following month.
• Annual informative return (Form IR-9) is due by the last day of February.

Employee tax deductions in the Dominican Republic are determined by a progressive tax system applied to net taxable income after certain deductions.

Income Tax (ISR)

The Income Tax (ISR) is the primary deduction for employees in the Dominican Republic. It's calculated on the net salary earned over the fiscal year (January 1st to December 31st) after deductions for social security contributions.

• Exempt Income: Incomes up to RD$416,220.00 are exempt from ISR. This threshold is subject to annual adjustments based on inflation.
• Tax Rates: Progressive rates apply to income above the exempt amount, ranging from 15% to 25%. As of 2023 the brackets are:
  • Up to RD$624,329.01: 15%
  • RD$624,329.01 to RD$867,123.00: RD$31,216.00 + 20% of the excess over RD$624,329.01
  • Above RD$867,123.01: RD$79,776.00 + 25% of the excess over RD$867,123.01
• Withholding: Employers are responsible for withholding the ISR from employee salaries and remitting it to the Dirección General de Impuestos Internos (DGII) by the 10th of the following month.

Social Security Contributions

Employees are subject to deductions for social security, which funds various programs like healthcare, pensions, and occupational hazard insurance. These contributions are typically a percentage of the employee's salary, shared between the employer and employee, and may vary depending on the specific programs included.

Other Deductions

• Educational Expenses: Employees can deduct up to 10% of their net taxable income for educational expenses incurred for themselves or their dependents. These expenses must be properly documented.

Employer Obligations

Employers in the Dominican Republic have specific tax obligations related to their employees, including:

• ISR Withholding: Deducting and remitting employee ISR to the DGII.
• Social Security Contributions: Paying both the employer's and employee's portions of social security contributions.
• INFOTEP Tax: A monthly payment of 1% of the total payroll to the National Institute of Professional Technical Training (INFOTEP).
• Fringe Benefits Tax: Paid by the employer at the corporate income tax rate on certain benefits given to employees.

Important Considerations

• Tax Year: The tax year in the Dominican Republic is the calendar year.
• Tax Filing: While employers handle most tax withholding and payment, individuals earning above a certain threshold from non-wage sources must file an annual tax return by March 31st.

This overview is current as of February 5, 2025, and may be subject to changes in tax laws and regulations. It is recommended to consult with a tax advisor for the most up-to-date information and personalized guidance.