The Asset Tax is an annual fiscal obligation applicable to legal entities in the Dominican Republic. This tax is levied on the total value of assets reflected in the taxpayer’s taxable balance sheet, including real estate, after applying deductions for depreciation, amortization, and allowances for bad debts. It is important to note that this balance is not adjusted for inflation. Companies without operations are not subject to this tax.

Who Is Exempt?

The following are exempt from the Asset Tax:

• Legal entities exempt from the payment of Income Tax (ISR) under the Tax Code, special laws, or contracts approved by the National Congress.
  • Companies benefiting from Law No. 158-01 on the Promotion of Tourism Development.
  • Among others.

Tax Calculation and Payment

The tax rate is 1% annually on the total amount of taxable assets. If applicable, the payment is made in two installments:

1. First installment: Due on the same deadline as the Income Tax (ISR).
2. Second installment: Due six months after the due date of the first installment.

If the amount of the Asset Tax exceeds that of the ISR, the taxpayer must pay the difference to the tax authorities, divided equally between the two scheduled installments.