Looking for Info on DR Income & Payroll Taxes

I am a US citizen who is being offered a job in the DR with residency sponsored by the company.

I will be required to report my income to local DR tax authorities. What would I have to pay in percentage terms in DR Income Tax, DR Pension Contributions, or any other local withholdings, taxes etc. In addition to the above, Does the DR operate on a flat tax system or is it progressive system with brackets?

Thanks in advance for your help.

Tucker

I suggest you take a look at www.rvhb.com, the site for one
of the biggest law-firms in RD. Generally speaking, taxes
are very low, but there seems to be much confusion about it.
I myself pay approx 7 %, but it may be unrepresentative,
since my workplace is in a "free zone". (A zone with certain
tax advantages) There are some progressiveness, but to the best
of my knowledge it starts at VERY high salaries.

Good luck and welcome to RD!

Gunnar, working in Santiago and living in Jarabacoa

I have been living and working in the DR 15 years and up until 2 years ago I was paying 0% Tax, The last 2 years I have been paying 10%.
There are other people that I know who are still paying 0 Tax's
Doing the same work as I'm..( Some of them have 6 figure US Incomes)
I think it depends on the Company...

For individuals, income below RD$102,792.00 pesos per annum is exempt from income tax. Income from RD$102,792.01 to RD$171,309.00 is subject to a 15% tax rate. Income from RD$171,309.01 to RD$256,957.00 pays a 20% tax. Income above RD$256,957.01 pays 25% tax which is the maximum tax rate. These tax brackets are adjusted for inflation every year in January.

Corporations pay a flat 25% tax on net income.

Mr Guzman, do I have to pay tax on a foreign pension (Canadian Goverment), if i reside in the DR?

No, you don't. The applicable provisions are articles 269 and 271 of the Tax Code.