Law 57-23: Tax Exemptions for Airlines and Aviation Operators in the Dominican Republic

For an airline, the tax on an aircraft lease payment can decide whether a route to the Caribbean is profitable. The Dominican Republic understood this when it enacted Law 57-23 in October 2023, creating a dedicated tax exemption regime for national and international commercial aviation, a bid to convert the country from a destination into a regional connection hub for passengers and cargo.

The incentives target the industry’s largest recurring costs. Qualifying operators receive a total exemption from the withholding tax that normally applies to payments abroad for aircraft and engine leasing, and for aircraft maintenance, repair and parts, historically one of the heaviest fiscal burdens on carriers operating leased fleets. Payments abroad for crew training, flight-operations software and aircraft insurance receive a reduced single and definitive withholding of 5%.

The regime also reaches indirect taxes. Charter flights sold by Dominican operators to foreign companies are exempt from ITBIS (the Dominican VAT), provided the flights originate abroad with the Dominican Republic as destination. Imports of aircraft under tariff headings 8802.30.00 and 8802.40.00, covering airplanes with an empty weight above 2,000 kg, enter free of customs duties and ITBIS. Qualifying operators are further exempt from the assets tax declared before the tax authority (DGII).

None of this is automatic. Law 57-23 channels applications through the Civil Aviation Board (JAC), which evaluates each operator’s file and recommends approval to the President, subject to a prior no-objection from the Ministry of Finance. The two-agency structure means an application must satisfy both an aviation regulator and a fiscal gatekeeper, files strong on operational credentials but thin on tax substance stall at the second stage.

Operators should also note the changed landscape since mid-2026: the fiscal reform enacted in June (Law 30-26) bars taxpayers from combining more than one special incentive regime over the same activity, and strengthens the Ministry of Finance’s power to object to beneficiary classifications. Aviation groups with free zone, tourism or trust structures should map their regimes before filing.

Our aviation and tax team prepares Law 57-23 applications and structures fleet and leasing arrangements to preserve eligibility. If your airline is evaluating Dominican routes or basing decisions, contact us for an eligibility assessment.

Do you want more information about our services for obtaining Dominican Aviation Tax Incentives? Contact Us.

Disclaimer: This publication is not intended to provide advice or suggest a guaranteed outcome as individual situations will differ and the situation may have changed since publication. For specific advice on the information provided and related topics, please contact the author.

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