Other laws

Key Laws

Other laws

Law No. 8-90

Development of Export Processing Free Zones

 
Encourage the creation of new export processing free zones as well as boost the development of existing ones, through effective regulation of their operation and development.
 

Benefits:

 
This Act offers tax incentives of up to 100% in the following areas:
 
• Payment of income tax, established by Law 5911 and amendments, related to stock companies.
 
• Payment of Tax on construction, loan agreements, on the registration and transfer of real estate property from the constitution of the operator of the corresponding Free Trade Zone.
 
• Payment of tax on the formation of the corporation and in increasing its capital.
 
• Payment of municipal taxes that affect their activities.
 
• No import duties and related to raw materials, equipment, building materials, parts of buildings, office equipment, etc., for the construction, operation preparation or tax free zone.
 
• Payment of Taxes on exports or re-exportation.
 
• Payment of Tax on economic activities (patents) in inventory or assets and the Tax on Transfer of Industrialized Goods (ITBIS).

Law No. 158-01

Tourism Development for Regions of Low Development and New Regions in Provinces and Cities with Great Potential

 

Benefits:

 
• Law that offers tax incentives of up to 100% are offered in the following areas:
 
• Income tax object of incentives as outlined in Article 2 of this Act.
 
• National and municipal taxes that are charged to use and issue building permits including land purchase Act, as long as it is used for one of the uses described in Article 3 of this law.
 
• Import taxes and other taxes, such as rates, fees, surcharges, including the Tax on the Transfer of Industrialized Goods and Services ITBIS, applicable on equipment, materials and furniture that are necessary for the initial equipment start-up and the tourist facility concerned.

Law No. 84-99

On Reactivation and Export Development

 
Eliminate tax burdens resulting from payment of rates on materials incorporated into products exported.
 

Benefits:

 
• Regime of Rights Reinstatement and Customs Taxes: allows exporters to obtain the refund of taxes paid on raw materials, supplies, intermediate goods, labels, packaging and packaging materials, imported by the exporter or indirect third party.
 
Assuming that these have been incorporated into export goods, or in the case of products that are returned abroad in the same state as they entered the Dominican customs territory.
 
• Simplified Compensation of Customs Rates: allows exporters of goods to compensate by Nominee Checks and / or Tax Compensation Bonds, customs taxes paid in advance for an amount not exceeding the equivalent to three percent (3%) of the free value board or FOB v alue of e xported goods.
 
• Temporary Admission Regime: gives the benefit of suspension of duties and import taxes applicable to the entry of certain goods into Dominican customs territory, from abroad or from the export processing zones, provided they are to be re-exported within a period not over 18 months, starting 30 days after admission of goods in Dominican customs territory. The regime applies only to the following goods: (i) raw materials, inputs and intermediate goods; (Ii) labels, packaging and packaging materials; (Iii) parts, molds, dyes, tools and other devices when they serve as a complement to other equipment, machinery or equipment used in the production of export goods.
 
Agency managing system benefits: Export and Investment Center of the Dominican Republic (CEI-RD).

Law No. 28-01

Creates Special Border Zone Development, covering the provinces of Pedernales, Independencia, Elías Piña, Dajabón, Montecristi, Santiago Rodríguez and Bahoruco, and offering tax incentives of up to 100%.
 

Benefits:

 
• Exoneration of fifty percent (50%) in the payment of freedom of transit and use of ports and airports, this exemption will be granted by presenting the certificate of Border Company, issued by the Coordination Council.
 
• Companies benefiting from this regulation will have a benefit period of 20 years.
 
• Exoneration of 100% of the income tax.
 
• 100% exemption from tax on Industrialized Goods and Services (ITBIS) regarding the transfer within the Dominican territory of services produced and services provided by companies.
 
• Exemption from duties and import taxes and other related taxes, including rates Unified taxation and internal consumption charged on the importation of raw materials. In addition, and inputs under the condition that they be subjected to processes of substantial transformation in the Dominican Republic generating added value. All of the above, so that the final good resulting from the transformation corresponds to a different one from the raw material or imported input rate heading, in accordance with the Customs rate of the Dominican Republic and the System.
 
• Harmonized Commodity Description and Coding System (are not included in the benefits and packing, repacking, packaging, blending, grinding and / or refining products).
 
• Exemption from payment of the exchange fee for import of capital goods, machinery and equipment.

 

Law No. 480-08

International Financial Zones

 

Law No. 57-07

Incentive Renewable Energy and Special Regimes.

It 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.
 
The main incentives granted by this Law are:
 
• 100% on imported equipment and machinery. • Processing equipment, including transmission and interconnection.
 
• Exemptions of up to 100% in the 10 years since the beginning of the operation until 2020. • Sales, Installation of equipment produced with 35% locally.
 
• 5% reduction on the interest paid on external financing in accordance with Article 306 of the Tax Code.
 
• Depending on the renewable energy technology associated with each project it is given up to 75% of the cost of investment in equipment, such as one-time credit to income tax, the owners or tenants of family housing, commercial houses or industrial for systems change or expand renewable sources in providing private energy consumption and whose projects have been approved by the competent bodies.
 

Agency management system benefits: National Energy Commission.

Law No. 392-07

Competitiveness and Industrial Innovation

 
Create a specialized regulatory and institutional framework, which encourages renewal, innovation and industrial upgrading. All, to achieve greater diversification of the Dominican productive apparatus, and industrial chain through the promotion of districts and industrial parks and links to international markets.
 
Beneficiaries: Manufacturing, composed of organizations dedicated to transforming raw materials into finished products or semi through physical transformation and / or chemical materials and components in different products, by machine or by hand in a factory, then to sell them wholesale or retail.
 

Benefits:

 
The industries qualified by the Center for Industrial Development and Competitiveness (PROINDUSTRIA) under the regime of the Act; industries can enjoy the following benefits:
 
• Exemption Transfer of Industrialized Goods and Services Tax (ITBIS) applicable in customs for the import of raw materials, industrial machinery and capital goods detailed in Article 24 of the Tax Reform Act 557-05 industries of December 13, 2005, and other capital goods and raw materials which enjoy a rate of zero percent (0%).
 
• Reimbursement to national or foreign legal persons qualified by PROINDUSTRIA exporting to third markets: i) Tax on the Transfer of Industrialized Goods and Services (ITBIS); ii) Selective Telecommunications Consumption; iii) Selective Insurance Consumption; iv) the Selective fuels Consumption, and v) tax on the issuance of checks.
 
• Exemption from the obligation to withhold income tax (ISR) for foreign natural or legal persons who can provide professional services related to development projects of products, materials and production processes, research and technology development, staff training, innovation, research, training and environmental protection, as well as all kinds of consulting services and / or technical advice.
 
• Over a period of five (5) years from the entry into force of the Law (until 2013), industries that adopt the system of the law will be able to depreciate rapidly, halving the times currently set by the Directorate General of Internal Revenue, the value of machinery, equipment and acquired technology.
 
Similarly, they can deduct 50% of the net taxable income of the fiscal year last year from investments in the purchase of machinery, equipment and technology.
 
Agency management system benefits: Development and Industrial Competitiveness Center (PROINDUSTRIA).

Law No. 150-97

On Customs Tariffs for supplies, Agricultural Machinery and Equipment.
 
Adapt the national regulatory framework to encourage that the production of agricultural goods flows into domestic and foreign markets at competitive prices.
 
Beneficiaries: Individuals or corporations that import inputs, machinery or equipment for use in the Dominican agribusiness.
 

Benefits:

 
• 100% exemption of import duties on inputs, fertilizers, equipment and machinery to be used in the Agricultural Industry.
 
• 100% exemption from payment of tax on transfer of goods (ITBIS). Agency management system benefits: Directorate General of Customs.

Law No. 56-07

Declaring national priority sectors within the textile chain, Clothing and accessories; leather, footwear manufacturing and leather manufacturing and creates a national regulatory regime for these industries Give the textile industry and clothing accessories and footwear special tax treatment, similar to that granted to free zones.
 
Beneficiaries of incentives: Companies in the textile industry.
 

Benefits:

 
• Exemption from Tax on the Transfer of Industrialized Goods and Services (ITBIS) by importing and / or purchase on the local market of inputs, raw materials, machinery, equipment and services established in the third article of this law, carried out by companies in the sectors within the textile chain, apparel and accessories; skins, manufacture of footwear and leather goods.
 
• The productive activity of companies in the sectors within the textile chain, apparel and accessories; skins, manufacture of footwear and leather goods that are not covered by any other special customs regime, is exempt from income tax, provided that such companies are up to date in their tax obligations and have been authorized by the National Free Zone Council. This allows them to enter Dominican territory up to 100% of goods and / or services, duty-free in the case of finished chain belonging to the textile, clothing and accessories products; skins, manufacture of footwear and leather goods.
 
Agency management system benefits: National Free Zones Council.

Law No. 171-07

Incentives to Foreign Pensioners

 
The main incentives granted by this Law are:
 
• Residence Permit Program through Investment. Decree 950-01, which allows foreign investors to obtain permanent residence within 45 days.
 
• Tax exoneration to home furnishings and personal property. Law 14-93.
 
• Partial Tax Exemption of import of vehicles. Law 168-67.
 
• Exemption from taxes on real estate transfers, for the first property acquired.
 
• 50% exemption of taxes on mortgages, when the creditors are financial institutions duly regulated by the Monetary and F inancial Law.
 
• Exemption 50% Tax Real Estate Property, when applicable.
 
• Exemption from taxes on the payment of dividends and interest generated in the country or abroad.
 
• 50% exemption from Capital Gains Tax provided the annuitant is the majority shareholder of the company that is subject to the payment of this tax and that the company is not engaged in commercial or industrial activities.