DOMINICAN REPUBLIC Law and Practice Contributed by: Sarah de León Perelló, Elizabeth Silfa Micheli and Naomi Rodríguez Manzueta, Headrick Rizik Álvarez & Fernández
amounts per gallon, in addition to a 16% ad-valorem. Other goods are taxed based on the fixed amounts established under the Tax Code. Value Added Tax (ITBIS) The ITBIS rate applicable to the transfer of products, the import of industrialised goods and the provision of services to the local market is 18%, calculated based on the net transfer price of the good or service, in accordance with the Tax Code. The Dominican Republic has five trade agreements: • the Dominican Republic–Central America–United States Free Trade Agreement (DR-CAFTA); • the CARIFORUM–European Union Economic Part - nership Agreement (EPA); • the Dominican Republic–Central America Free Trade Agreement (TLC RD/CA); • the Dominican Republic–Caribbean Community (CARICOM) Free Trade Agreement; and • the Trade Agreement between the Dominican Republic and the Republic of Panama. The Dominican Republic grants preferential tariffs to countries with which it has a free trade agreement, which benefit from reduced or zero tariffs on most goods. Additionally, certain sectors benefit from tar - iff or custom duty exemptions, including free trade zones, renewable energy projects, tourism develop - ment, non-profit organisations. Tariffs are often higher on: • agricultural products (poultry, rice, beans, dairy, onions and garlic, sugar, corn and wheat flour) to protect local producers; • beverages (beer, rum) to protect local industries; and • textiles (higher on Asian and other non-preferential countries). Because of recent global developments, the Domini - can economy may face both potential benefits and difficulties. Higher gold prices may boost export rev - enues, while higher tariffs and a slowdown in global trade could negatively affect the textile and manu -
facturing industries, potentially resulting in reduced investment inflows. The United States is the Dominican Republic’s most significant bilateral trading partner, representing 53.5% of the country’s total exports, valued at over USD7.6 billion in 2025. The Dominican Republic is among the countries with the lowest reciprocal tariff rate (10%). As a general rule, Competition Law No 42-08 does not create a notification regime for merger and acquisition transactions but companies in specific industries are subject to the requirements established by their cor - responding regulators and sectorial laws. Mergers and acquisitions are subject to notifica - tion in the case of telecommunications companies, insurance, reinsurance and insurance intermediation companies, as well as financial intermediation enti - ties, companies which are the beneficiaries of pub - lic concessions for electricity generation and mining, pension fund administrators and companies making public offerings. 6.2 Merger Control Procedure Law No 42-08 does not set forth a merger control procedure but companies in specific industries are subject to the requirements established by their cor - responding regulators and sectorial laws. 6. Competition Law 6.1 Merger Control Notification In the case of telecommunication companies, written notice should be given to the authorisations depart - ment of the Institute of Telecommunications ( Instituto Dominicano de las Telecomunicaciones – INDOTEL) prior to the closing of any transaction which implies, directly or indirectly, the loss or possibility of loss, on the part of the seller or assignor, of corporate con - trol, or the possibility of forming the corporate will of the company which holds the authorisation to oper - ate as a telecommunication service provider in the Dominican Republic. If INDOTEL determines that prior authorisation is required in order to execute the trans -
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