Dominican Republic exempts e-invoice issuers from ITBIS withholding
The Dominican Republic's tax authority has ended certain ITBIS withholding on payments to authorised e-invoice issuers when an Electronic Fiscal Receipt supports the transaction. It cites real-time data from mandatory e-invoicing.
The Dominican Republic’s Directorate General of Internal Revenue (DGII) issued General Rule No. 02-26 on 16 September 2026. It removes certain ITBIS withholding on payments to authorised electronic invoice issuers. The transaction must be supported by an Electronic Fiscal Receipt (e-CF).
The Dominican Republic’s Directorate General of Internal Revenue (DGII) has exempted authorised electronic invoice issuers from certain ITBIS withholding obligations. General Rule No. 02-26 was issued on 16 September 2026 and applies from its issuance.
The rule covers companies designated as ITBIS withholding agents under General Rule No. 02-05. They will not have to withhold ITBIS when paying another legal entity if two conditions are met. The recipient must be authorised by the DGII as an electronic issuer. The transaction must be invoiced with an Electronic Fiscal Receipt (e-CF).
Scope of the exemption
The exemption applies only to withholdings imposed under General Rule No. 02-05 and its amendments. General Rule No. 02-05 requires ITBIS withholding on:
- Payments for professional services, including legal, accounting and engineering services
- Rentals of movable goods such as equipment, machinery and vehicles
- Commissions paid to travel agencies and insurance brokers by airlines, hotels and insurance companies
Other ITBIS or Income Tax withholding and perception obligations established under separate tax rules or legal provisions remain unchanged.
Rationale
The DGII said the move reflects the introduction of mandatory Electronic Fiscal Receipts under Law No. 32-23. Electronic invoicing gives the tax administration real-time transaction information. It therefore addresses the monitoring objective that originally supported the withholding requirements.
The rule states that the measure aims to reduce costs and ease compliance for authorised electronic issuers that invoice their clients with e-CF.