DOMINICAN REPUBLIC Law and Practice Contributed by: Guillermo Estrella Ramia, Yamel Llenas Lajud, Mariela Santos Jiménez and Valentina Gallo Botero, Estrella & Tupete
This liability is objective and joint, extending to com- pany representatives and subsidiaries. In the criminal sphere, the law explicitly recognises the criminal liability of legal persons when offences are committed on behalf of or for the benefit of the entity. This does not exclude the personal liability of directors, managers or employees who participated in or authorised the offence. Penalties may include: • aggravated fines; • confiscations; • suspension of operations; • damage repair; and • judicial dissolution of the entity. 6.2 Environmental Taxes In the Dominican Republic, the tax system does not have a formal “green tax” regime, but it does incor- porate scattered fiscal measures aimed at promoting sustainability and discouraging polluting activities. The main instruments include the following. • Environmental service fees charged by the Ministry of Environment and Natural Resources (MIMA- RENA) for the issuance of licences, permits and environmental impact assessments. • Solid waste management contribution, established under Law No 225-20, which includes payments for final disposal and co-processing. • Selective tax on the consumption of fossil fuels, regulated by Law No 112-00, designed to discour- age the use of petroleum derivatives and to finance the Fuel Stabilisation Fund. • Exploitation rights and environmental compensa- tions in the mining and energy sectors, pursuant to the Mining Law and the Renewable Energy Law. • Municipal taxes on waste disposal and public cleaning services, provided for under Law No 176- 07. • Vehicle tax based on CO₂ emissions, applied to the registration of new vehicles according to their emission levels, intended to encourage cleaner and more efficient technologies. 6.3 Incentives, Exemptions and Penalties In the Dominican Republic, there are fiscal and finan- cial incentives designed to promote sustainable prac-
tices, although not under a unified “environmental citi- zenship” framework. • Law No 57-07 on Incentives for the Develop- ment of Renewable Energy Sources grants 100% exemptions from income tax, VAT, customs duties and import taxes for ten years to clean energy pro- jects and associated equipment. • The Green and Social Taxonomy and the issu- ance of sovereign green bonds (2024–2025) have expanded access to preferential financing for envi- ronmentally responsible investments. • Law No 225-20 on Integrated Solid Waste Man- agement and Co-processing provides benefits and recognition to companies implementing circular economy practices and waste recovery initiatives. 6.4 Shareholder or Parent Company Liability Environmental liability in the Dominican Republic pri- marily falls on the legal entity holding the licence or regulated activity, with the patrimonial autonomy of shareholders and parent companies generally pre- served. However, liability may be extended when there is evidence of: • effective control; • asset commingling; • fraud against the law; or • direct economic benefit derived from the environ- mental violation. In such cases, the authorities or courts may pierce the corporate veil and declare the joint liability of share- holders or the parent company together with the oper- ating subsidiary. Although there is no systematic juris- prudence on this matter, MIMARENA and the Office of the Specialised Environmental Prosecutor (PEDMA) have acknowledged the possibility of joint attribution in situations of shared management or active partici- pation in the project’s environmental operations. 6.5 ESG Requirements In the Dominican Republic, environmental, social and governance (ESG) requirements are being progres- sively integrated into public regulation and corporate practice, although there is not yet a single compre- hensive law governing them.
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