President Luis Abinader repealed Decree 30-25 which contemplated the application of the Tax on Transfers of Industrialized Goods and Services to foreign digital platforms and services such as gambling.
Dominican Republic.- The government of the Dominican Republic, through Decree No. 107-25, repealed the previous Decree No. 30-25, issued on January 17, 2025, which regulated the collection of the Tax on Transfers of Industrialized Goods and Services (ITBIS) on digital services consumed in the country, provided by foreign suppliers.
The repeal, announced by Homero Figueroa, director of Strategy and Communication of the Presidency, nullifies the application of ITBIS to popular platforms such as Netflix, Spotify, and Amazon, as well as other digital services, including those offering online gambling. The original decree, which generated various reactions in the country, had been proposed as a way to tax a wide range of digital services such as movies, music, betting, online games, and more, although its scope was also a subject of great debate.
Among the most controversial features of the decree was its inclusion of gambling in the list of services subject to ITBIS. According to the regulation, any online betting or gambling platform would be required to apply the tax on its transactions, which raised concerns among the sectors of digital entertainment and economic authorities.
The Bar Association of the Dominican Republic (CARD), led by its president, Trajano Vidal Potentini, expressed strong opposition to the original measure, stating that only the National Congress has the authority to establish taxes, and not the Executive Power by decree. Potentini emphasized that the imposition of taxes on foreign digital platforms without a law approved by Congress could have been illegal and unconstitutional. In his view, the measure not only represented a danger to the legal security of the country but could have caused international conflicts, particularly with the United States, whose government had already expressed its opposition to similar policies in other nations.
“Such policies and legal mistakes would have generated not only a disturbance in the legal and institutional framework but also a possible conflict with the United States, thus protecting both consumers and the Dominican digital ecosystem," stated Potentini.
With the repeal of Decree No. 30-25, President Luis Abinader seeks to avoid the creation of new tax burdens without due legislative process, and prevent any negative impact on the digital economy of the country.
Despite the repeal, experts agree that it is necessary to establish a clear and appropriate regulatory framework for digital services, in a way that ensures both legal security and the development of the digital economic sector, always respecting international trade agreements.
