Legal certainty, security for investments

SECURE BUSINESS

Legal certainty, security for investments

With sustained growth, skilled labor, legal framework and incentives for investors, Dominican Republic offers the most attractive opportunities for doing business in the Caribbean region.
The state recognizes that foreign investment creates jobs and foreign exchange, promotes the capitalization process and provides efficient methods of production, marketing and administration
The Dominican State recognizes that foreign investment and transfer of technology contribute to economic growth and social development. These statements are contained in Law No. 16-95 on foreign investment, where the State recognizes that this investment generates jobs and foreign currency, promotes the capitalization process and contributes efficient production, marketing and administration methods.
 
According to Law 16-95 foreign investment may take the following forms:
 
* Contributions made in freely convertible currency, exchanged at a bank authorized by the Central Bank (www.bancentral.gov.do).
 
* In-kind Contributions, such as industrial plants, new and refurbished machinery, new and reconditioned equipment, replacements, spares and parts, raw materials, intermediate products and final goods, as well as intangible technological contributions (trademarks, patents, technical assistance, management assistance and franchises).
 
Financial instruments qualified in the category of foreign investment by the Monetary Board, except for those, which are the product of contributions or internment of an operation of conversion of a Dominican foreign debt.
 
The Law establishes the applicability of the following fundamental principles to foreign investment in the Dominican Republic:
 
1. National and non-discriminatory treatment for foreign investors, having the same rights and obligations in investment as national investors.
 
2. Ability to repatriate abroad, in freely convertible currency, one hundred percent (100%) of the capital invested and the perceived benefits of the investment.
 
3. The following may repatriate, under the same conditions, the obligations resulting from technical service contracts, where fees are established based on technology transfer and / or contracts for local production of foreign brands, which include clauses for royalty payments provided. Such contracts and procedures involved amounts or payments have been previously approved by the Central Bank of DR.
 
4. Simplified procedure for the registration of foreign investment in the Central Bank of the Dominican Republic and the Export and Investment Center of the Dominican Republic (CEI-RD).
 
Foreign investment in the Dominican Republic also benefits from the possibility of obtaining protection through the Multilateral Investment Guarantee Agency of the World Bank (MIGA) and the Overseas Private Investment Corporation (OPIC) of the United States.
 
Also, free access to the international currency through local banks and the Central Bank of the Dominican Republic.

Laws that favor investmentn

Development of Export Processing Free Zones (Law No. 8-90), favors the creation of new export processing free zones and encourages the development of existing ones, through effective regulation of their operation and growth.
 
Development of Tourism (Law 158- 01) with tax incentives of up to 100% for poorly developed locations and new sites in provinces and regions with great potential. Reactivation and Development of Export (Law No. 84-99), with the elimination of the tax burden resulting from the payment of tariffs for materials incorporated into exported products.
 
Law 28-01, whereby a Special Zone of Border Development, covering the provinces of Pedernales, Independencia, Elías Piña, Dajabón, Montecristi, Santiago Rodríguez and Bahoruco, and offering tax incentives of up to 100%; as well as Law 480-08 on International Financial Zones.
 
Incentives for Renewable Energy and Special Regimes (Law 57-07) that encourages the development of new forms of renewable natural energy that minimize the negative impact on the environment. Grants tax incentives that encourage companies to produce energy using renewable resources.
 
Competitiveness and Industrial Innovation (Law 392-07), creating a specialized regulatory and institutional framework that encourages renewal, innovation and industrial upgrading, to achieve greater diversification of the Dominican productive apparatus, the industrial chain through the development of districts and industrial parks and links to international markets.
 
Law 150-97, on Customs Rates for Supplies, Agricultural Machinery and Equipment, which proposes to adapt the national regulatory framework to encourage the production of agricultural goods that enter domestic and foreign markets at competitive prices, which benefits natural or legal persons who import inputs, machinery or equipment to be used in the Dominican agribusiness.
 
Law 56-07 declares as National Priority the sectors within the textile chain, Clothing and Accessories; Fur, Manufacture of leather shoes, and creates a national regulatory regime for these industries granting special tax treatment similar to that of free zones.
 
Incentives to Foreign Source Pensioners (Law171-07), which sets the Residence Permit through Investment Program. Decree 950-01, allows foreign investors to obtain permanent residence within 45 days. They receive tax exoneration on home furnishings and personal property. Law 14-93. Partial Tax Exemption on Imported Vehicles. Law 168-67.
 
Other benefits include exonerations and tax exemptions, 50% in Tax Capital Gains, provided the annuitant is the majority shareholder of the company subject to the payment of this tax and that the company is not engaged in commercial or industrial activities.