DOMINICAN REPUBLIC Law and Practice Contributed by: Sarah de León Perelló, Elizabeth Silfa Micheli and Naomi Rodríguez Manzueta, Headrick Rizik Álvarez & Fernández
the suspension, rectification, confidentiality or update of the data.
• trusts, including construction trusts estab - lished for the development of low-income housing projects, will be subject to income tax and capital gains tax obligations; • elimination of tax reductions and exemptions currently granted to mining concessionaires; • elimination of tax incentives for the tourism sector, established under Law No 158-01; • elimination of tax incentives for the film activ - ity, established under Law No 108-10; • elimination of cultural patronage tax incen - tives, including: (a) income tax exemptions for programs, projects, and artistic and cultural activities declared to be of cultural interest; and (b) tax incentives for individuals or legal entities that donate goods intended to be part of the nation’s historical, artistic and cultural heritage. In late 2024, the Executive Branch of the Domini - can Republic introduced a “fiscal modernisation” bill, which was met with strong opposition from a broad segment of Dominican civil society and was ultimately withdrawn. This new bill mirrors many of the same elements of the withdrawn proposal, leading the authors to believe that its chances of being enacted are slim.
9. Looking Forward 9.1 Upcoming Legal Reforms
Proposed Amendment to the Company Law The Legal Advisor to the Executive Branch announced that a bill will be introduced in Congress to amend Law 479-08, with the aim of modernising and simplifying the process of starting a business. Proposed Amendment to the Tax Regime A bill proposing significant amendments to the tax exemptions and privileges regime is cur - rently under consideration by a special commit - tee within the Dominican Republic’s Chamber of Deputies. The draft legislation includes, among other proposals, the following: • income tax exemptions for non-profit asso - ciations engaged in educational activities; • establishment of an obligation for free zone companies to pay income tax and allow - ing them to choose between two payment options: (a) a fixed 5% tax on the gross value of local sales; or (b) filing an annual sworn tax return for the portion of local sales, deducting only the direct expenses associated with those transactions;
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