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Withholdings (ISR and ITBIS)

FacturaScripts handles withholdings with a single field that is internally called IRPF (the Spanish personal income tax). That concept does not exist in the Dominican Republic: the DGII talks about withholdings (retenciones) of ISR (income tax) and ITBIS. That is why the plugin changes the texts to the DGII terminology and calculates each withholding according to its rule.

How each type is calculated

Type The percentage applies to Example (service of 10,000.00 with 18 % ITBIS)
ISR The line net amount 10 % → 10,000.00 × 10 % = 1,000.00
ITBIS The line ITBIS invoiced 30 % → 1,800.00 × 30 % = 540.00; 100 % → 1,800.00

Internally FacturaScripts can only apply a percentage to the net amount. For ITBIS-type withholdings the plugin converts it using the line ITBIS (30 % of 18 % ITBIS is 5.4 % of the net amount), so the amount is also correct on lines with 16 % or exempt ITBIS.

ITBIS withholdings (DGII guide)

Percentage When it is withheld Rule
30 % of ITBIS Companies paying liberal professional services or movable-goods rental to other companies 02-05
100 % of ITBIS Legal entities paying taxed services to non-profit entities 01-11
100 % of ITBIS Companies paying security or surveillance services to other companies 07-09
100 % of ITBIS Purchases from individuals not registered as taxpayers (purchase voucher) 05-19
30 % or 100 % Construction sector: 30 % if a legal entity provides the service, 100 % if an individual 07-07

The catalog includes the RETEN30 and RETEN100 withholdings, which the plugin marks as ITBIS.

ISR withholdings

The plugin adds these ISR withholdings with the 606 format code (Tipo de Retención en ISR):

Code Description %
RETISR1 Rents (code 1) 10
RETISR2 Fees for services (code 2) 10
RETISR3 Other income (code 3) 10
RETISR5 Interest to legal entities (code 5) 1
RETISR6 Interest to individuals (code 6) 1
RETISR7 State suppliers (code 7) 5
RETISR8 Telephone games (code 8) 5
RETISR9 Beef cattle subsector (code 9) 1

The percentages come from the DGII guide Retenciones de ISR e ITBIS (July 2025). There are other ISR withholdings (for example 2 % on technical services or 27 % on remittances abroad) that you can create yourself.

Who must withhold

According to the DGII, only legal entities, sole-proprietor businesses and public entities act as withholding agents. An individual who is not a sole-proprietor business does not withhold ISR.

Creating a withholding

  1. Open Accounting → Withholdings (or edit an existing one).
  2. Enter the code, description and percentage.
  3. In Tax withheld choose ISR or ITBIS.
  4. For ISR, choose the 606 format ISR withholding type.

Applying it on a document

  1. Assign the withholding as the customer's or supplier's default withholding.
  2. New documents for that customer or supplier take the withholding on every line.
  3. The withheld amount is deducted from the total, shown in the footer and on the PDF (Withholding row) and posted to the withholding subaccount. If the subaccount is missing or the withholding does not exist, FacturaScripts warns you when posting.

Example, a service of 10,000.00 with 18 % ITBIS and a RETEN30 withholding:

Net                          = 10,000.00
ITBIS 18 %                   =  1,800.00
Withholding (30 % of ITBIS)  = 1,800.00 × 30 % = 540.00
Total                        = 10,000.00 + 1,800.00 − 540.00 = 11,260.00

To not withhold on a line (for example on a product), set its withholding to 0 in the line modal.

Reports 606 and 607

The plugin stores on each invoice how much ITBIS and ISR was withheld, and the reports show it:

Report Column Data
606 ITBIS Withheld ITBIS withheld from the supplier
606 ISR Withholding Type Code of the ISR withholding
606 Income Tax Withheld Amount ISR withheld
607 ITBIS Withheld by Third Parties ITBIS the customer withheld from you
607 Income Tax Withheld by Third Parties ISR the customer withheld from you
607 Withholding Date Invoice date

The DGII TXT file includes this data. Review it against the official template before filing.

Limits to keep in mind

  • One withholding per document. FacturaScripts stores a single percentage per line, so you cannot apply an ISR and an ITBIS withholding on the same invoice (for example, an individual providing a taxed service). In that case record the larger withholding and handle the rest in your tax return.
  • The withholding comes from the customer or supplier. For a customer or supplier with an ITBIS withholding, a line percentage greater than 0 is recalculated from that withholding; only a line set to 0 is respected.
  • The 607 withholding date is the invoice date. The DGII asks for the date the third party withheld.
  • Earlier invoices. Invoices saved before this version do not have the ISR/ITBIS split stored, and the ITBIS ones were calculated on the net amount. Review them with your accountant.
  • Confirm with your accountant which withholding applies to each operation.