In a coordinated response to ongoing global macroeconomic headwinds, the government of the Dominican Republic has formally adopted a comprehensive anti-crisis economic package.
The strategic legislative overhaul is engineered to stabilize the nation’s public finances, accelerate long-term economic growth, and insulate vulnerable demographics from international financial shocks.
Implementation of Surcharges on Major Corporate Earners
The fiscal consolidation program implements an intentional tax increase targeting large companies and retail gambling operations. Under the active parameters of the newly approved package, state revenue departments will impose a temporary three-percentage-point surcharge on Corporate Income Tax (Impuesto sobre la Renta – ISR) until the conclusion of the 2028 fiscal year. The emergency measure effectively raises the primary corporate tax bracket to 30% for enterprises generating over 1 billion pesos in annual revenue, a cohort that represents approximately 0.8% of all active businesses nationwide.
Additionally, the state will adjust baseline electronic processing fees, raising the rate on bank check transactions and electronic transfers from 0.15% to 0.2%, while introducing a selective consumption tax on electronic cigarettes and executing a $10 hike on international airline ticket taxes. Crucially, the government has confirmed plans to impose a significantly higher taxation matrix on casinos and gambling-related activities, using the newly generated revenue streams to fund national social protection programs.
Centralizing National Gambling Control and formalizing Operations
Magín Díaz, Dominican Republic Minister of Finance and Economy, emphasized that the multi-layered strategy provides the treasury with the capital required to preserve essential public spending targets amid prolonged external volatility:
“The proposed package would allow the authorities to achieve a more sustainable state of public finances and the protection of the most vulnerable sectors in light of the persistent international crisis.”
In tandem with these tax adjustments, the country’s leadership is completely transforming the regulatory system governing the gambling sector. A new piece of legislation submitted to the Senate seeks to transition the National Lottery into a fully independent, self-funded state institution. Promoted by Senator Pedro Tineo, the initiative establishes the restructured entity as the central, unified supervisor for all lotteries, sportsbooks, electronic gaming machines, and casino operators, absorbing tasks previously handled by the Ministry of Finance’s Directorate of Casinos and Games of Chance (DCJA).
The centralization move follows the activation of the National Regularization Plan for lottery offices and betting houses under Decree 197-26. While the General Directorate of Internal Taxes (DGII) assumes direct responsibility for tax collection and legal enforcement, the National Lottery will maintain a core seat on the program’s Advisory Council. National Lottery Administrator Teófilo Tabar has officially been appointed as the temporary director of the regularization program to streamline sector formalization.
