Dominican government prepares to tax Netflix, Airbnb and other digital platforms within 60 days

DGII Director Pedro Urrutia said the initiative seeks to ensure that all digital services are subject to the same tax obligations as local businesses. Speaking at an event organized by the National Organization of Commercial Enterprises, Urrutia noted that the affected companies have expressed willingness to comply with the tax once the legal framework is finalized.

The proposal would impose the 18% Tax on the Transfer of Industrialized Goods and Services (ITBIS) on subscriptions, short-term rental services, digital advertising, and other online transactions. The DGII is currently evaluating whether the existing Tax Code provides sufficient legal authority or whether additional legislation will be required.

The measure revives an effort that was previously attempted through Decree 30-25 in 2025, which was later repealed by the government. Urrutia argued that foreign digital companies should not be exempt from taxes in the Dominican Republic and said the agency intends to move forward with collection agreements regardless of whether legislative changes are needed.

Beyond digital taxation, the DGII is also working to simplify the Dominican tax system, including reforms to the Simplified Tax Regime (RST), with the goal of making compliance easier and strengthening competitiveness without placing unnecessary burdens on taxpayers.