If the wages current will index using the multiplier adjustment by inflation corresponding to each period in which it has not been applied, the employees within the scale subject to the retention of the tax about the rent (ISR) would only be those who earn more than 50,098.33 pesos per month, according to a calculation made by the Regional Center for Economic and Sustainable Strategies (Crees).
Given this, people with monthly income greater than 34,685.00 pesos should not be taxed at the 15% rate, economist Miguel Collado Di Franco, executive vice president of Crees, explained to Diario Libre. Those who earn less than this amount are not deducted tax.
The economist specified that, since the approval of the Law General of Budget of the State 2018, the adjustment by inflation of the scale wage to which the tax on the income of natural persons. “This provision has been present in subsequent budget laws; therefore, since then the annual income of individuals that exceeds 416,220.01 pesos are taxed at a rate of 15%, 20% or 25%, depending on the scale for the discount,” he recalled.
When calculating the accumulated amount with the multiplier of the adjustment by inflation of each year, this should currently be 601,179.95 pesos, according to Crees estimates.
The indexing wage is he adjustment What is done to salaries to compensate for the loss of the value of the money that has been had in a period determined by the inflation. It is established in the Dominican Tax Code, but this adjustment It has not been done in recent years because in the Law of Budget General of the State, a chapter is in force that establishes the non indexing.
Crees estimates that if the wages who pay the ISRthe variation in the minimum wage that pays it would increase by 44.4%.
The General Directorate of Internal Taxes (DGII) indicates that the tax about the rent is the one that “taxes everything” rentincome, utility or benefit, obtained by individuals, companies and undivided estates, in a specific fiscal period.” For this, there is a scale with the percentages to be deducted from the payroll, and it applies to the public and private sectors.
Implications
Collado explained that the adjustment by inflation applies to all sections of the scale wage and leaving it void directly affects all workers. “The State has benefited from this measure because, by not indexing the wagesmore people enter the tax base. To the extent that the wages are increasing, more people are being taxed,” he added.
According to the preliminary report of the DGII, the collections for the concept of ISR of employees increased by 14.5% at the end of 2024, going from 79,844.2 million pesos in 2023 to 91,423.7 million last year.
For the indexingit would be necessary to modification tax every time a Law of Budget General, raising the scale of the wages who pay this taxwhich is deducted from the payroll on a biweekly basis.
