Dominican Republic

Registrations and Establishing an Entity

Company setup involves selecting a legal structure (LLC, PLC, SPLC), registering the trade name with ONAPI, drafting and notarising bylaws, and obtaining a tax ID (RNC). Registration with the Chamber of Commerce, bank account setup, and social security registration follow. Final incorporation is published in a local newspaper.

Banking

A local bank account is not mandatory for paying employees or taxes. Standard bank hours are 09:00–15:00 (Mon–Thu), 09:00–17:00 (Fri). ATMs and online banking are widely available.

Choose a Company Type: 

• Limited Liability Company (LLC) 

• Simplified Public Limited Company (SPLC) 

• Public Limited Company (PLC) 

• Single Member Limited Liability Company (SMLLC) 

• General Partnership 

• Limited Partnership 

• Partnership Limited by Shares 

• Foreign Company 

Working Week

The standard workweek is 40 hours across five days. The legal limit is 44 hours per week. Overtime must be paid at enhanced rates.

Employment Law

Holiday Accrual
Employees are entitled to 14 paid vacation days after one year of service.

Maternity Leave
12 weeks of maternity leave, with 6 weeks taken post-birth.

Paternity Leave
Not specified by law, though some employers offer it voluntarily.

Sick Leave
Paid leave entitlement depends on length of service. Statutory coverage varies by contract terms.

National Service
There is no compulsory national military service in the Dominican Republic.

Tax & Social Security

The tax year is calendar-based: 1 January to 31 December.

Income Tax Rates (2025)

• Up to RD$416,220: 0%
• RD$416,220.01–RD$624,329: 15%
• RD$624,329.01–RD$867,123: 20%
• Over RD$867,123: 25%

Social Security Contributions

Employers and employees are required to participate in the pension system.

Payroll

Online payslips are legally permitted. There are no additional legal restrictions or formal procedures for digital payroll.

Reports

Payroll records must be maintained for at least five years. Monthly and annual tax declarations are filed with the DGII. Employers submit Form IR-3 for salary tax and annual Form IR-13 summarising employee income.

Payslip Example

(Local language sample not included in the source)

Reporting

Employers must ensure timely submission of social security and tax contributions to avoid penalties.

New Employees

Written contracts are mandatory for foreign hires. Contracts must be registered with the Ministry of Labour. Local employees must be registered with the TSS and tax authorities.

Leavers

Final pay must be settled within 10 days of termination. Delays result in daily penalties. Severance and notice pay are determined by length of service.

Employee Benefits

The minimum wage varies by sector and is RD$19,352/month (2025). Employers must ensure equal pay regardless of gender and provide safe working environments.

Expenses

There are no specific statutory rules for expenses beyond payroll. Items like car mileage or benefits in kind are handled per internal policy and may be taxable depending on structure.

Foreign employees require:

• A job offer
• A business visa for employment (valid for 1 year)
• A residence permit for stays over 2 months

The employer sponsors the work permit. Application includes a medical certificate, criminal background check, employment contract, and proof of financial solvency. Dependents may apply separately.

Companies operating in free trade zones may be subject to different wage or tax rules. Written employment contracts are particularly important for foreign workers. INFOTEP contributions are mandatory for all employers. Bilingual documentation is recommended for foreign executives.

Further Information

For more information, or assistance with Dominican Republic Tax inquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.