Dominican Tourism Tax Incentives Law 158-01 of October 1st, 2001, as amended, provides that all individuals and enterprises that venture, promote or invest capitals in designated tourism zones, for tourism activities such as hotels, resorts, cruises, conventions, congresses, festivals, shows and concerts facilities, infrastructure for basic services, entertainment, bio and theme parks, port and maritime infrastructure, aquariums, restaurants, golf courses, sports facilities and any other facility belonging to tourism activities, may benefit from the following incentives:

a) 100% exemption from the payment of the income tax object of the incentives;

b) 100% exemption from the payment of national and municipal taxes charged on the incorporation and capital increase of companies, use and issuing of construction permits, tax on real estate property (IPI) and on the transfer of real estate property rights;

c) 100% exemption from the payment of all import taxes and other taxes such as tariffs, rights, surcharges, including the Value added Tax (VAT or “ITBIS”) applicable to the equipment, materials and movables necessary for the first equipment and putting into operation of the corresponding tourism facility; and,

d) 100% exemption from the payment of taxes or withholdings that may arise from any local and international financing and from the accruing interests, granted to companies that are object of these incentives”

The Tourism Promotion Council (“CONFOTUR”) is the regulatory agency in charge of the application of Law 158-01, and is empowered to evaluate and to approve all requests for application of the tax incentives provided under this Law.

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ABOUT THE AUTHOR: Dr. Felipe Isa Castillo is a Partner leading the Foreign Investment, Real Estate & Tourism areas at Arthur & Castillo Law Firm and Attorneys in the Dominican Republic. He specializes in foreign investment, real estate and international business (International Legal Studies LLM in Georgetown University Law Center in Washington, D.C. & Masters in International E- Business in Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience in Foreign Investment, Free Trade Zones, International Business and Cross Border Real Estate practice. Dr. Castillo is a Certified Bankruptcy Conciliator and Liquidator and Legal Interpreter.

Email: [email protected]

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

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