Reform to Law No. 225-20 on the Integrated Management and Co-processing of Solid Waste: Scope, Impact, and Compliance Recommendations

The President of the Dominican Republic, Luis Abinader, enacted Law No. 36-26, dated July 6, 2026, amending the General Law on the Integrated Management and Co-processing of Solid Waste (Law No. 225-20). The enactment followed the approval of the reform by the National Congress after the Chamber of Deputies introduced several amendments to the text originally passed by the Senate, which were subsequently adopted by the Senate in a single reading. With the entry into force of this reform, the country adopts a new regulatory framework that redefines the mandatory contributions applicable to regulated entities, strengthens environmental restrictions, and reorganizes the infrastructure designated for the final disposal of solid waste.

These changes have a direct impact on companies across virtually all sectors of the economy, as well as on non-profit organizations and autonomous patrimonies, making it essential to understand the scope of the new obligations and compliance measures introduced by this legislation.

1. Main Amendments Introduced by the Reform

The reform preserves the overall structure of the special contribution intended to finance the national solid waste management system but introduces substantial adjustments to the version originally approved by the Senate.

First, it reduces the maximum contribution applicable to the highest-revenue companies from three million Dominican pesos (DOP 3,000,000.00) to two million two hundred thousand Dominican pesos (DOP 2,200,000.00) for entities with annual gross revenues exceeding two billion five hundred million Dominican pesos (DOP 2,500,000,000.00).

Likewise, the reform completely revises the progressive contribution scale applicable to the various revenue brackets, establishing contributions ranging from five thousand Dominican pesos (DOP 5,000.00) for companies with annual revenues of up to five million Dominican pesos, to the new maximum of two million two hundred thousand Dominican pesos (DOP 2,200,000.00) for the highest bracket. Intermediate contribution levels include DOP 6,000.00, DOP 20,000.00, DOP 90,000.00, DOP 120,000.00, DOP 150,000.00, DOP 400,000.00, DOP 500,000.00, DOP 675,000.00, DOP 750,000.00, and DOP 1,700,000.00, depending on each taxpayer’s gross annual income.

The reform also amends Paragraph IV of Article 36 of Law No. 225-20, providing that the contribution shall be assessed annually by the General Directorate of Internal Taxes (DGII) and may be paid in two semiannual installments. The first installment, equivalent to fifty percent (50%) of the total amount due, shall be payable upon filing the annual Corporate Income Tax (ISR) return, while the remaining balance shall be paid six months later.

In addition, the reform includes a transitional provision allowing legal entities and private organizations that failed to pay the contribution in previous fiscal years to regularize their status exceptionally during the months of July and December 2026, creating a valuable compliance window that delinquent companies should take advantage of.

With respect to exemptions and special treatment, the reform exempts non-profit organizations from paying the contribution, allows the companies most affected by the revised contribution scale to deduct the amount paid from their Corporate Income Tax liability, and establishes a special regime for companies whose revenues are derived primarily from commissions, capping their contribution at six hundred seventy-five thousand Dominican pesos (DOP 675,000.00).

Inactive companies, however, remain subject to a minimum annual contribution of five thousand Dominican pesos (DOP 5,000.00), demonstrating that the obligation is based on the legal existence of the entity rather than the actual generation of income.

2. Environmental Restrictions and Reorganization of Waste Management Infrastructure

Beyond the financial contribution, the reform introduces a phased prohibition on certain single-use plastic products and expanded polystyrene, commonly known as foam.

Beginning six months after the enactment of the law, the importation of plastic straws, forks, knives, spoons, cups, and any other products made from expanded polystyrene without the biodegradability certification required by law will be prohibited.

Foam products that remain on the market must comply with a gradual biodegradation schedule, achieving twenty percent (20%) biodegradability during the first year and ninety percent (90%) within five years. This requirement imposes a technological adaptation timetable on manufacturers and importers in the plastics and packaging industries that should begin immediately.

Regarding infrastructure, the reform provides that only one authorized landfill may operate in each province and that one processing plant shall be established for every ten regions, located within a maximum radius of seventy kilometers, except for the Ozama Region, which is exempt from this limitation due to its population density.

This territorial reorganization will directly affect industrial waste generators and waste collection and disposal service providers, who will need to review their service agreements and logistics routes under the new landfill framework.

3. Impact on Businesses

The reform’s immediate impact on the business sector is primarily fiscal and administrative.

Every legal entity incorporated in the Dominican Republic, regardless of its business activity, must determine the applicable contribution bracket based on its annual gross revenues, schedule payment in coordination with the filing of its Corporate Income Tax return, and verify whether it qualifies for any of the special regimes provided by the law, particularly those applicable to commission-based businesses.

Companies operating in the plastics, packaging, and disposable products sectors must promptly begin replacing materials and obtaining biodegradability certifications, as the six-month period before the import ban on certain single-use products takes effect begins upon the law’s enactment.

Particular attention should be paid to the inclusion of autonomous patrimonies and trusts within the scope of the contribution. This provision has raised concerns within the construction and real estate development sectors.

Industry associations have warned that this inclusion could result in double taxation by imposing contributions on structures and transactions already subject to taxation under other legal frameworks, potentially conflicting with the special trust regime established by Law No. 189-11 on the Development of the Mortgage Market and Trusts.

Real estate developers utilizing trust structures should carefully evaluate, together with their legal and tax advisors, the impact of this provision on project costs and the possible need to pass such costs on to the final purchase price of residential units.

4. Implementation Challenges

The speed with which the reform was enacted constitutes a practical challenge in itself.

The Senate considered the bill on the very day it was introduced and approved it under an emergency procedure in two consecutive readings without prior review by a standing committee. The Chamber of Deputies subsequently followed the same expedited legislative process.

This legislative approach, combined with the fact that Law No. 225-20 had already been amended by Law No. 98-25 in December 2025, creates a rapidly evolving regulatory environment requiring businesses to closely monitor future developments, including implementing regulations expected to be issued by the Ministry of Environment and Natural Resources and the General Directorate of Internal Taxes (DGII).

Another significant challenge arises from the projected increase in the resources administered by the DO Sostenible Trust, whose annual revenues could increase from approximately three billion Dominican pesos to nearly nine billion Dominican pesos under the new contribution scheme.

This substantial increase in publicly funded resources administered by the trust raises legitimate questions regarding oversight, transparency, and accountability mechanisms. Companies required to contribute have a legitimate interest in monitoring how these funds are managed and utilized.

Conclusion

The reform to Law No. 225-20 on the Integrated Management and Co-processing of Solid Waste represents a fundamental change in both the financing structure of the national solid waste management system and the environmental obligations of businesses operating in the Dominican Republic.

Although the reduction of the maximum contribution and the introduction of special tax treatments partially mitigate the impact originally contemplated in the Senate’s version, the expansion of the law’s scope to include autonomous patrimonies and trusts, together with the accelerated legislative process, makes it advisable for companies to act proactively and with due diligence.

At Alburquerque Abogados, we are prepared to assist our clients in conducting individualized assessments of the reform’s impact, planning their tax compliance strategy, and protecting their interests before the competent authorities.