What is the CONFOTUR Tourism Development Council?
On 9 October 2001, the National Congress approved Law No. 158-01 on the promotion of tourism development for low-development areas and new areas in provinces and localities with great potential, with the aim of accelerating a rationalized process of development of the tourism industry in all regions with potential and natural conditions for tourism exploitation throughout the Dominican Republic.
The aforementioned law created the Tourism Promotion Council (CONFOTUR) in order to implement the guidelines of Law No. 158-01, as well as to create the necessary conditions and facilities for innovative tourism projects to benefit from the incentives granted by the law.
Benefits:
It is excluded from income taxes on natural or legal persons who
undertake, promote, or invest capital in the activities regulated by law, as well as those that develop new projects or complementary offers, whether by concession, lease, or any other form of agreement with the Dominican State in the tourist poles indicated in the law and in accordance with Article 3 thereof.
It is excluded from national and municipal taxes for the incorporation of companies that have already been incorporated.
National and municipal taxes on rights of transfer of real estate rights, sales, exchanges, contributions in nature and any other form of transfer.
Excluded from Real Estate Property Tax (IPI) are fees, duties and fees for the preparation of plans, studies, consultancies, supervision and construction of the works to be executed in the tourism project in question, the latter exemption, applicable to contractors.
It is excluded from import taxes and other taxes such as fees, duties, surcharges, including the tax on the transfer of industrialized goods and services (ITBIS), which are applicable on machinery, equipment, materials and movable property that are necessary for the construction and for the first equipment and commissioning of the tourist facility in question.
It does not apply withholdings on national and international financing, nor
interest granted to the companies that are the object of these incentives.
Individuals or legal entities may deduct from their net taxable income the amount of their investments in tourism projects included within the scope of this law, being able to apply the amortization of such investments up to (20%) of their taxable income, each year, in no case will the amortization period exceed 5 years.
Total and absolute exemption from the machinery and equipment necessary to achieve a high profile of product quality (ovens, incubators, production control treatment plants and laboratories, among others), at the time of implementation.
These incentives apply to new construction projects that meet the
requirements required by law.
The exemption period is 15 years from the completion of the
construction, 3 years are granted to start operations in a sustained and uninterrupted manner of the approved project.
