If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $82,400 of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

Dominican income tax law is primarily territorial. All income derived from work or business activities in the Dominican Republic is taxable, no matter if the person is a Dominican, a resident foreigner or a non-resident foreigner. On the other hand, income derived from work done abroad, even by a Dominican, is not taxable in the Dominican Republic.

The exception to the principle of territoriality is income from financial sources abroad (Articles 269 and 271 of the Tax Code). A Dominican or a resident foreigner receiving income from financial investments abroad (stocks and bonds, certificates of deposits, etc.) must pay taxes in the DR on their income from those investments.

Social security benefits and income from pension plans are not considered income from financial investments.

For the resident foreigner, this obligation only starts three years after obtaining residency. Enforcement of this last provision, however, has been very weak. Foreign Earned Income Exclusion.