Law No. 28-01 dated 1st. February 2001 creates a special development frontier zone for industrial, agro-industrial, agriculture/livestock, metal-mechanic, free zone, tourism, metallurgical and energy companies that exist at the time of promulgation of said law, and those that may be installed in the future within the limits of the provinces of Pedernales, Independencia, Elías Piña, Dajabón, Montecristi, Santiago Rodríguez and Bahoruco.
The development, incentive and protection of those companies has been declared of national interest as well as all those that are included by the law; the implementation regulation stipulates that only those companies which have not been classified nor had benefited by other special contracts and/or other laws and provisions of similar incentives, as well as those companies and projects that demonstrate their economic and financial feasibility may benefit from this law.
Law 28-01 and its regulation establish that the companies or projects that avail themselves of the preferential regime will have the right, subject to the specific limitations that will be determined by the corresponding classification, to the following fiscal incentives.
- 100% exemption of the Income Tax of Net Taxable Income;
- Exemption of ITBIS 18 % (sales tax) payment;
- Exemption of import duties and taxes and other related charges, including tariffs, unified taxes and those of internal consumption that have a bearing on semi-processed products that are part of the composition or the manufacture process of the product, packaging or package materials;
- Exemption of import duties and taxes and other related charges, including tariffs, unified taxes and those of internal consumption that have a bearing on: • Fuels and lubricants used strictly for the industrial process, except gasoline. • Industrial machineries, equipment, spare parts and accessories that are imported exclusively to form part of the relevant industrial unit;
- Exemption of the Income Tax of the portion of the Net Taxable Income that individuals or companies reinvest in implementation of the industries or to develop new industries, classified under Law 28-01, prior submission of projects that will require the approval of the Coordinating Council. This exemption will cover as many fiscal years as are necessary to reach total reinvestment value, without the exemption in each fiscal year exceeding 50% of the tax payer’s Net Income;
Exemption of 50% from the payment of freedom of movement and use of ports and airports.