Dominican Republic Transfer Pricing Documentation Requirements
The Dominican Republic requires a Master File and Local File where a taxpayer's aggregate related-party transactions exceed an annually indexed threshold, around DOP 14.3 million. An informative return, the DIOR, is filed within 120 days of year-end, and documentation is produced within 30 days of a request.
Requirements at a glance
| Requirement | Threshold | Deadline | Deadline type | Language | Penalty |
|---|---|---|---|---|---|
Master File Required | Aggregate related-party transactions above the indexed threshold (~DOP 14.3m); no exemption for low-tax-jurisdiction dealings | By the Master File deadline | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. Once requested, it must be provided within 30 days. | ES | Yes (5 to 30 times the minimum salary) |
Local File Required | Same indexed threshold as the Master File | 12 months after fiscal year-end | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. Once requested, it must be provided within 30 days. | ES | Yes (5 to 30 times the minimum salary) |
DIOR return Informative return
Annual filing | Taxpayers with related-party transactions | Within 120 days of fiscal year-end | Submission deadline The documentation must be filed with the tax authority by the date shown. | ES | Yes |
CbC report Required | Group revenue ≥ DOP 38,800m | 12 months after fiscal year-end | Submission deadline The Country-by-Country report is filed by the group's ultimate parent entity; a local notification identifying the reporting entity is filed separately. | — | Yes |
Calculate your exact Dominican Republic deadline
Enter your entity’s fiscal year-end to return your exact Dominican Republic preparation or filing date. Available without registration.
Scope of the documentation obligation
A taxpayer whose aggregate transactions with related parties exceed the documentation threshold must prepare a Master File and Local File. The threshold is indexed annually, standing at approximately DOP 14,265,442, around USD 259,000, for 2023. Taxpayers below the threshold are generally excluded, provided they do not transact with residents of certain low-tax jurisdictions, in which case the exclusion does not apply. The informative return, the DIOR, is filed within 120 days of the fiscal year-end, alongside the corporate income tax return, and documentation is produced within 30 days of a request.
Distinctive features of the Dominican regime
Two features distinguish the Dominican regime. The first is the annually indexed threshold, which is adjusted each year rather than fixed, so the population in scope shifts with the index. The second is the detail required in the informative return: the DIOR discloses each related party’s tax address and identification number, the classification and amount of each transaction, the profit-level indicator of the tested party, the interquartile range or results of the comparables, and the methods applied, which makes the return a substantive analytical filing rather than a summary. The exclusion below the threshold is also conditional, falling away where the taxpayer deals with residents of certain low-tax jurisdictions. The penalty for non-submission ranges from 5 to 30 times the minimum salary.
Benchmarking and comparables
There are no benchmarking requirements specifically directing local or regional comparables, and given the limited local financial information, international comparables are accepted. A multi-year analysis of the comparables is used, in practice over three years, with an explanation required where multi-year analysis is necessary. A fresh benchmarking search each year is preferred over a financial update, and the Local File is prepared annually with the most recent comparable information. The limitation period is three years, extended to five years where a return is not filed.
Frequently asked questions
Is the Dominican documentation threshold fixed?
No. The threshold is indexed annually, standing at approximately DOP 14.3 million for 2023, so the population in scope shifts each year. The exclusion below it also falls away for taxpayers dealing with certain low-tax jurisdictions.
This guide is an informational research aid prepared by Comp-Press and is not tax or legal advice. Transfer pricing rules change; verify current requirements before relying on them for filing.