Business
Dominican Republic — Business: Sole Proprietorship
How an individual earning from professional services or a trade can use the DGII's Simplified Tax Regime (RST): income cap of RD$12,068,181.09 a year, simplified returns, DGII approval needed. It does not cover how to register a sole proprietorship itself.
VerifiedGovernment / official sourceDirección General de Impuestos Internos (DGII) – Taxpayer Guide No. 16: Simplified Tax Regime (RST), February 2026Last reviewed: 2026-10-27
Key facts
- Individuals with income from professional services or independent trades, exempt from ITBIS or with it 100% withheld, can join the RST by income if their annual income does not exceed RD$12,068,181.09.
- Traders in goods can join the RST by purchases if annual purchases and imports do not exceed RD$55,485,890.09; both limits are adjusted annually for inflation.
- Applicants must be residents of the country, have their RNC data fully updated, have a 31 December fiscal year-end, be up to date on taxes, and not be under external audit.
- Joining needs prior DGII authorisation, requested through the Oficina Virtual (Inscripción y Actualización al RNC) or at a local DGII office; the DGII answers within 15 working days and approval takes effect the following month.
- Requests must be made at least 60 days before the last working day of February.
- Advantages: no monthly 606/607/608 data filings, no income tax advance payments, no Asset Tax on assets tied to the activity, and simplified annual ITBIS and income tax returns.
- Members must issue invoices with a fiscal receipt number (NCF) and keep documents supporting their tax calculations.
Steps
- Unknown Process: Sole Proprietorship Registration — The process of registering a sole proprietorship in the Dominican Republic is not well-documented, and it is recommended to consult with local authorities or experts for guidance.