The National Union of Entrepreneurs proposes optimizing the Dominican tax system
The National Union of Entrepreneurs (UNE) has presented a series of strategic recommendations to the General Directorate of Internal Taxes (DGII) with the purpose of modernizing tax management in the country. The president of the entity, Julio García Batista, led the meeting where key measures were discussed to alleviate the administrative burden and improve the liquidity of formal businesses.
Among the fundamental points raised by the UNE is the review of ITBIS withholdings, a restructuring of Income Tax advances to adjust them to the economic reality of businesses, and greater speed in the refund of credit balances, factors that currently impact the working capital of productive sectors.
Relieving those who comply and closing the gap with those who do not are not opposing objectives. They are, in reality, the same task viewed from two angles.
Julio García Batista, president of the UNE
Advances in digitalization and simplification
During the session, the Director General of the DGII, Pedro Porfirio Urrutia Sangiovanni, highlighted the institutional progress achieved to date. The official reported that the entity has managed to simplify 68 administrative procedures in a period of less than two months, with another 88 processes in the transformation phase. These actions are part of a larger effort to optimize the catalog of 421 procedures managed by the institution.
Likewise, the 8% growth in tax collections at the end of 2025 was highlighted, reaching RD$913,821 million, supported by a massive adoption of electronic invoicing, which already has more than 80,000 registered issuers.
Proportional oversight and risk-based approach
A central pillar of the UNE’s proposal is the implementation of differentiated oversight. The organization maintains that control measures should be adjusted according to the size, operational nature, and compliance history of each company, recognizing that micro, small, and medium-sized enterprises (which represent 98.7% of the business fabric) possess different financial realities than those of large corporations.
- Administrative efficiency: Use electronic invoicing information to eliminate the duplication of data reporting.
- Reduction of evasion: Focus enforcement efforts on higher-risk taxpayers, rather than increasing pressure on those who comply punctually.
- Broadening the base: Incentivize formalization to combat the 54% labor informality rate and reduce the ITBIS compliance gap.
The UNE reaffirmed its commitment to collaborate closely with the DGII to build a tax system that, through technology and efficiency, fosters an environment of fair competition, boosts the growth of formal businesses, and guarantees the sustainability of the State’s public revenues.
