SANTO DOMINGO.– With the promulgation of Law No. 36-26 by President Luis Abinader on July 9, the concern shifted from focusing solely on the amount of contributions to focusing on the implications that its application will have on strategic sectors of the economy, including construction and the real estate market.
The regulations, which amend Law 225-20 on Comprehensive Management and Co-processing of Solid Waste, came into effect after being enacted by the Executive Branch and redefine the scale of special contributions that must be paid by legal entities, non-profit associations, autonomous assets and public entities, taking their annual gross income as a reference.
Its approval puts an end to months of debate due to the substantial increase in contributions to finance the national waste management system, a measure that has generated discontent in the Dominican business community.
In the case of organizations linked to construction, they believe that there are still aspects that could affect the development of real estate projects and increase the cost of housing.
From increased tariffs to new concerns
The discussion about the reform began in late 2025, when Law 98-25 increased the special contributions that companies pay to finance solid waste management, with increases that in some cases exceeded 500% compared to the previous regulations.
Criticism from the business community led the General Directorate of Internal Taxes (DGII) to temporarily suspend the collection of these amounts in April of this year while Congress evaluated a modification of the legislation.
As a result of that process, Congress approved a new reform that was now formalized with the enactment of Law 36-26.
The new scale eliminates the flat-rate system that required companies with revenues exceeding RD$100 million to pay RD$675,000 annually and replaces it with a progressive table with amounts ranging from RD$400,000 to RD$2.2 million, depending on the revenue level. It also expands the first tax bracket, so that companies with revenues up to RD$5 million will pay RD$5,000 annually.
However, while some companies will experience reductions compared to the regime approved in December 2025, others will assume increases or new obligations, which is why the debate shifted from the amount of the fees to the scope of the law and its impact on certain legal entities.
The point that worries the construction industry
One of the main questions in the construction sector is not focused exclusively on the value of the contribution, but on the application of this obligation to real estate trusts.
Even before the law was enacted, business leaders in the sector warned that taxing both the developer and the trust that develops the same project could create a double economic burden on a single real estate transaction.
Jochimin Pérez, CEO of Constructora JPérez, argued that the trust constitutes a legal vehicle for executing projects and not an independent economic activity, so applying an additional contribution on that structure could result in a duplication of burdens.
"A developer who develops a project directly only pays taxes once. A developer who uses a trust could end up paying taxes twice for the same project," he told El Inmobiliario on June 22 of this year.
Could the cost of housing increase?
The developers' concern is that any increase in the financial structure of a project ends up being reflected, to a greater or lesser extent, in the final price of the housing units.
According to industry representatives, trusts remain active for several years, from planning to delivery of homes, so an annual contribution could be incorporated as an additional cost within the overall budget of the real estate development.
This scenario becomes more relevant in low-cost housing projects, where financial margins are narrower and trusts are a widely used tool to facilitate access to financing and take advantage of the incentives provided for in Law 189-11 on Mortgage Market Development and Trusts.
That was precisely one of the arguments put forward by the Dominican Association of Housing Builders and Promoters (Acoprovi), the Association of Housing Promoters and Builders of Cibao (Aprocovici), the Association of Builders of Santo Domingo East (Acosde), the Association of Builders and Developers of La Altagracia (Adecla) and the Dominican Chamber of Construction (Cadocon), who requested a review of the scope of the reform before its final approval.
In a joint statement, the organizations said they support strengthening the country's environmental management, but insisted that any measures must meet criteria of proportionality, legal certainty, and economic sustainability to avoid unforeseen effects on access to housing.
How did contributions change?
The enactment of Law 36-26 again modifies the scale of special contributions for solid waste management that companies must pay, following the increases introduced by Law 98-25. Although the new regulations reduce some rates that had been widely questioned by the business sector, they also expand the universe of taxpayers and increase the amounts for certain income ranges.
In the case of higher-income companies, the law replaces the fixed rate of RD$675,000 with a progressive scale ranging from RD$400,000 to RD$2.2 million, depending on annual revenue.
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