TAX INCENTIVES FOR FILMS IN THE DOMINICAN REPUBLIC

INCENTIVO FISCAL CINEMATOGRÁFICO EN LA REPÚBLICA DOMINICANA | TAX INCENTIVES FOR FILMS IN THE DOMINICAN REPUBLIC

TAX INCENTIVES FOR FILMS IN THE DOMINICAN REPUBLIC

The Dominican Republic, determined to promote the development of the national cinematography filming activity, has Law 108-10, consisting of tax incentives for projects of this nature.

This fiscal sacrifice is intended to enhance the projection of the image of the Dominican Republic as a tourist country and as a strategic point in major film projects, to create new employment sources and to become the main support for Dominican artistic talent. All this, based on the constitutional provision that makes the Dominican state responsible for establishing policies that promote and stimulate artistic manifestations, nationally and internationally.

The incentives consist, for foreign projects, in a Transferable Tax Credit (TTC), equivalent to 25% of all expenses incurred in the Dominican Republic that are directly related to the pre-production, production and post-production of the films. The credit can be transferred in favor of one or several Dominican taxpayers. In addition, can count on the availability of facilities for monetization solutions in advance. The tax credit does not allow transfer for less than 60% of its value. In addition to the TTC, the products and services that are directly related to the pre-production, production and post-production, are exempt from the payment of the Tax on the Transfer of Industrialized Goods and Services.

Foreign productions must have a minimum of a 25% Dominicans members, in addition to possessing the Single Filming Permit, mandatory for filming in public places, and processing the permission for the temporary importation of equipment necessary for filming, issued by The General direction of Cinema.

For Dominican film projects, this incentive represents a reduction of investment risk for producers, because allows the business sector to withhold 25% of the taxes payable, to be invested in this type of production.

 

Leave a Reply

Your email address will not be published.