Advantages and Incentives

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Free Trade Agreements

Through free trade agreements, the Dominican Republic provides access to a global market of over 900 million consumers.

  • DR-CAFTA: A free trade agreement between the Dominican Republic, Central America, and the United States of America.
  • EPA: Economic Partnership Agreement between the European Union and CARIFORUM countries (Caribbean Community and Dominican Republic).
  • RD-CARICOM: This agreement allows the Dominican Republic tariff-free access to Caribbean Community (CARICOM) countries: Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago.
  • DR-Central America: Since 1998, the Dominican Republic has had a free trade pact with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
  • DR-Panama: In addition to connections through DR-CAFTA and the DR-Central America agreement, the Dominican Republic has a special free trade agreement with Panama.
  • GSP: The Generalized System of Preferences program allows Japan, New Zealand, Norway, Switzerland, and Turkey to grant preferential trading conditions to developing countries, including the Dominican Republic.

Export Incentives

Law 8-90 on Free Trade Zone Promotion: Law 8-90 provides a 100% exemption from the Tax on the Transfer of Industrialized Goods and Services (ITBIS) for free trade zones.

Law 392-07 on Competitiveness and Industrial Innovation: Under this law, certain raw materials, industrial machinery, and capital goods specified in Article 24 are exempt from 50% of ITBIS upon customs clearance.

Law 84-99 on Export Reactivation and Promotion: Law 84-99 exempts import taxes for companies purchasing goods abroad for export purposes.

Law 56-07 for Priority to the Textile Sector: Law 56-07 establishes special tax incentives for companies in the textile, apparel, accessories, leather, and footwear sectors, allowing them to sell 100% of their goods domestically.