DR Investment Tax Incentives

Dominican Exports Promotion Law 84-99 provides for certain incentives, such as the reimbursement of taxes and customs duties paid by the exporters for raw materials, components, intermediate goods, labels, containers and packing material, if those are incorporated to export goods or returned abroad in the same condition that they entered the Territory. The Law also establishes a “Regime for the Temporary Admission for Perfecting Goods” allowing the entry of certain goods to Dominican Customs Territory, with suspension of duties and import taxes, to be re-exported in a term no greater than 18 months after their admission to DR customs territory.

Renewable Energy Law 57-07 of Incentives for Renewable Energy and Special Regimes grants companies that undertake the production of renewable energy in Dominican Territory and who invest in renewable energy production projects with 100% exemption from import duties for equipment, machinery and accessories for the production of energy or renewable sources, including equipment for transmission, transformation and interconnection, 100% exemption from the sales tax for the above-mentioned equipment, and all final sales tax, 100% exemption from income tax for up to a period of ten (10) years from the beginning of operations (with a cap until year 2020).

Textile, Apparel and Leather Industries Law 56-07 Declaring of National Priority the Textile, Apparel and Accessories, Shoemaking and Leather Manufacturing Sector offers companies in these Industries in Dominican Territory with incentives consisting of an exemption from payment of Value Added Tax and other DR taxes on the import or purchase in the local market of raw materials, components, machinery, equipment and services, application of a cero percent (0%) tariff to the import of all exempted products from the cotton, fiber, textile, apparel and accessories, leather, shoemaking, and leather manufacturing industries. They may export up to one hundred percent (100%) of goods and/or services into DR Territory.

Tourism Promotion Law 158-01 of Incentives for Tourism Development provides that all persons that venture, promote or invest capitals in tourism and ecotourism activities such as hotels, resorts, cruises, conventions, congresses, festivals, shows/concerts facilities, basic services infrastructure, entertainment, bio/theme parks, port/maritime infrastructure, aquariums, restaurants, golf courses, sports facilities, tourism real estate and any other facility related to tourism activities, may benefit from 100% exemption for 15 years, from: (1) income taxes resulting from the investment; (2) company incorporation and capital increase taxes, construction permits, property tax, property transfer tax; (c) import taxes and other taxes, including value added tax applicable to equipment, materials and movables for starting operation the facility; and, (d) taxes and withholdings from financing and accruing interests.

Our professionals can assist foreign investors to evaluate the DR investment tax incentives laws and special regimes to develop export, free zones, apparel industry, logistic centers, renewable energy, and real estate and tourism projects in the Dominican Republic

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