SANTO DOMINGO.- New increases come into effect after the approval of Law No. 98-25 on Comprehensive Management and Co-processing of Solid Waste, promulgated on December 15 , by the Executive Branch.
The regulations update the mandatory special contribution regime that companies and public entities must pay, and establish that its application will be effective from the fiscal year-end of 2025 , directly impacting the declarations submitted in April 2026.
The new legal framework stipulates that all legal entities, non-profit organizations, trusts, and government entities that report income to the General Directorate of Internal Taxes must make an annual contribution based on their revenue. The amounts range from RD$3,000 for companies with revenue up to one million pesos, to RD$675,000 for those exceeding one hundred million pesos.
The funds raised will be transferred to the National Treasury and then to the DO Sustainable , as established in Article 36 , which reads as follows: «
This trust will finance transfer stations, sanitary landfills, waste-to-energy plants, and integrated municipal solid waste projects. A portion of the funds will be allocated directly to municipalities and municipal districts to cover collection and disposal costs, ensuring that the contributions are used exclusively for integrated waste management.
Purpose of the reform
Law 98-25 amends Law 225-20 to strengthen the regulatory framework for integrated solid waste management. The law establishes that the special contribution is intended to create a fund to mitigate the negative effects of current waste disposal practices and to develop a comprehensive, sustainable management system.
How is the contribution calculated?
The calculation of the contribution is established in Paragraph I of Article 36 , which sets a progressive scale according to annual income:
- Up to RD$1,000,000 of income: RD$3,000 (previously RD$500, a 500% increase).
- From RD$25,000,001 to RD$50,000,000: RD$155,000 (previously RD$30,000, an increase of over 300%).
- More than RD$100,000,001: RD$675,000 (previously RD$260,000, an increase of approximately 160%).
The same paragraph stipulates that these amounts will be indexed annually according to the consumer price index (CPI) published by the Central Bank of the Dominican Republic.
Validity and collection
Paragraph III of Article 36 of the law states that the contribution will come into effect as of the fiscal year 2025 closing. This means that companies must include the new payment in their tax returns corresponding to April 2026.
Paragraph IV stipulates that the DGII will be responsible for collecting contributions from private entities and transferring them to the National Treasury within thirty days of their receipt.
Destination of funds
Paragraph VI of Article 36 establishes that a portion of the special contribution from public institutions will be allocated to municipalities and municipal districts to cover expenses related to the management of urban solid waste.
Likewise, the special contribution from private legal entities, together with a percentage of the public contribution, will be used to cover the costs of operations at transfer stations, sanitary landfills, urban solid waste recovery plants, and integrated projects.
