The Law for Promoting Tourism Development is hereby established for scarcely developed tourist destinations and new destinations in provinces and locations having great potential; as well as the Official Fund for Tourism Promotion.
The purpose of this law is to increase the pace of a rational process of development of the tourist industry in regions with great potential or with excellent natural conditions for tourism exploitation throughout the country, which, whether or not declared as tourist destinations, have not reached to this date the expected degree of development, and which are listed below: Jarabacoa and Constanza; Barahona, Bahoruco, Independencia and Pedernales; Montecristi, Dajabon, Santiago Rodríguez and Valverde: San Cristobal and the municipality of Palenque, Peravia and Azua de Compostela; Nagua and Cabrera; Samana; Hato Mayor; El Seybo; San Pedro de Macorís; Espaillat; Sanchez Ramirez and Monseñor Nouel; San Jose de Las Matas; Monte Plata; La Vega.
For this purpose, this law and its regulations establish the incentives to be given as stimulus to projects and investments pursuing the aforementioned goals and objectives.
All persons or entities domiciled in the country undertaking, promoting or investing capitals in any of the activities set forth in the tourist destinations mentioned in the preceding article may benefit from the incentives and benefits granted by this law.
The establishment in our national territory of businesses engaged in the tourist activities listed below are hereby declared of special interest to the Dominican Republic:
- Hotel facilities, resorts and/or hotel complexes;
- Building facilities for conventions, fairs, international conventions, festivals, shows and concerts;
- Businesses engaged in the promotion of cruises establishing any of the ports specified in this law as their mother port for the origin and final destination of their ships;
- Construction and operation of amusement parks and/or ecological parks, and/or theme parks;
- Construction and/or operation of port and maritime infrastructure for tourism, such as recreational ports and seaports;
- Construction and/or operation of tourist infrastructures, such as aquariums, restaurants, golf courses, sports facilities, and any other that may qualify as a tourist activity;
- Small-and medium-sized businesses whose market is fundamentally related to tourism (handcrafts, ornamental plants, tropical fish, endemic reptiles farms and the like);
- Utility-infrastructure companies for the tourist industry, such as aqueducts, treatment plants, environmental cleaning, and garbage and solid waste removal.
Businesses domiciled in the country and qualifying for the incentives and benefits established in this law are exempted one hundred percent (100%) from paying the taxes listed below:
- The income tax subject to incentives;
- National and municipal taxes levied on the use and issuance of construction permits, including land purchase documents, provided that such land is used for one of the purpose
- Import duties and other taxes, such as tariffs, fees, late charges, including the Tax on Transfer of Industrial Goods and Services (ITBIS) that are applicable to the equipments, materials and furnishings needed for initially equipping and putting into operation the tourist resort concerned.
National and international funding given to such companies as are the subject of these incentives, as well as any interest thereon, are exempted from all taxes and withholdings;
Full and absolute tax exemption shall be granted in connection with the machinery and equipment needed to achieve a high quality profile of products (including kilns, incubators, production control treatment plants, and laboratories), at the time of establishing the tourist project.
No new taxes, tariffs, fees, etc. shall be established during the tax-exemption period.
The incentives and benefits referred to herein shall be strictly limited to new projects whose construction is started after the enactment of this law.
The tax-exemption period for every tourist resort, business or company shall be ten (10) years from the date of completion of the construction work and the furnishing of the project subject of these incentives. A term not exceeding three (3) years shall be provided to begin the sustained and uninterrupted operation of the resort approved, the nonobservance of which shall result in the immediate loss of the exemption rights acquired.