- Transfers to third parties and checks pay 0.20%: RD$2 for every RD$1,000.
- Transfers between accounts of the same holder, the holder’s cash withdrawals and tax payments to the State don’t pay.
- The bank deducts it at the time of the operation and remits it to the DGII.
- It can’t be avoided on payments to third parties, but you can calculate it, record it correctly and avoid paying it twice.
What is it and how much is it?
It is a tax that has existed since Law 288-04 and applies to checks and electronic transfers. Law 30-26 raised the rate from 0.15% to 0.20% from July 3, 2026, an increase of one third. Banks act as withholding agents: they deduct it from your account when you make the operation and pay it to the DGII.
| Amount transferred | Before (0.15%) | Now (0.20%) |
|---|---|---|
| RD$10,000 | RD$15 | RD$20 |
| RD$100,000 | RD$150 | RD$200 |
| RD$1,000,000 | RD$1,500 | RD$2,000 |
Which operations pay and which don’t?
These pay the tax:
- Transfers to third-party accounts, at the same bank or another, including ACH.
- Issuing and paying checks.
- Online payments generated in the country.
- Cash withdrawals made by authorized third parties.
These don’t:
- Transfers between accounts of the same holder, even at different banks.
- The holder’s cash withdrawals at ATMs or branches.
- Tax payments to the State.
- Payments to Social Security and pension funds.
- Credit card purchases.
Loan and credit card payments made by transfer or account debit may be taxed depending on how they are made. If you pay large amounts this way, check with your bank how it applies to you.
Calculate what it costs your company
Add up what you pay third parties each month by transfer or check (suppliers, payroll, rent, services) and multiply it by 0.002. For example:
| Monthly payments to third parties | Tax per month | Tax per year |
|---|---|---|
| RD$500,000 | RD$1,000 | RD$12,000 |
| RD$2,000,000 | RD$4,000 | RD$48,000 |
| RD$10,000,000 | RD$20,000 | RD$240,000 |
It shows up on your bank statements as a charge on each operation. Review them at each month-end to confirm the amounts match your payments.
How to control it in your business
- Avoid paying it twice: if you transfer money to an employee or someone else so they can pay a supplier, the tax is charged on each transfer. Pay the right recipient directly.
- Move funds between your own accounts at no cost: transfers between accounts of the same holder are exempt, even at different banks. Make sure both accounts are in the name of the same person or company.
- Include it in your costs and prices: if you make many payments or work with thin margins, the 0.20% belongs in your budget and your pricing.
- Record it correctly in your books: it is a tax, not a bank fee. Ask your accountant to record it in the right account and review how to treat it in your tax return.
- Reconcile your accounts every month: compare the tax charges with your payments to spot errors or charges that don’t belong.
Combining several payments into one does not reduce the tax, because it is a percentage of the amount: ten payments of RD$10,000 pay the same as one of RD$100,000. What does reduce the cost is eliminating unnecessary intermediate transfers.
If your company makes dozens of payments a month, reconciling the tax charges by hand takes time. A report that reads your bank statements and separates the tax by month and type of payment tells you exactly how much you pay and where.
Want to know how much you really pay and organize your payments? We can help.
Let’s talkFrequently asked questions
Do I pay the tax if I transfer to my own account at another bank?
No. Transfers between accounts of the same holder are exempt, even at different banks. For joint accounts, the bank may ask for a letter confirming ownership.
Does combining several payments into one reduce the tax?
No. The tax is a percentage of the amount, so ten payments of RD$10,000 pay the same as one of RD$100,000. What does reduce the cost is avoiding unnecessary intermediate transfers.
Is the tax deductible for my company?
It depends on your type of taxpayer and how the expense relates to your activity. Check with your accountant and record it as a tax, not a bank fee.
Does paying in cash avoid the tax?
The holder’s cash withdrawals don’t pay, but paying in cash reduces the traceability of your expenses, increases security risks and can make it harder to support your expenses before the DGII.