Magín Díaz considers wages must still not be indexed until tax reform is made

The former general director of Internal Taxes (2016-2020), Magin Díaz, agreed to workers’ wages not being indexed yet in the Dominican Republic. He acknowledged that it is a decision of economic policies and believes that since 2017 wages are not indexed.

“It is a way of capturing tax base. That is the reality, and the government has continued with that policy that has come for years as a way of not losing tax income. My opinion is that it should continue to be made until a great reform is discussed which will be in one or two years,” Díaz said.

At least since 2017 in the country, salaries are not indexed annually as established by the Tax Code of the Dominican Republic. For 2023, the General Directorate of Internal Taxes (DGII) left the readjustment to the taxable minimum entry of natural persons without effect. This means that there are workers who pay the Income Tax (ISR) and should not.