Dominican Republic eyes sweeping tax breaks for tourism projects
Santo Domingo.- President Danilo Medina on Tuesday sent a bill to Congress to amend the Tourism Development Law, with tax breaks to secure the tourism sector’s sustained development and attract investment by local and foreign companies.
The bill provides tax breaks for investment in four areas of the capital; Santo Domingo Central, the National District Shorefront (Malecon), the Ozama River Estuary, and the Santo Domingo East Shorefront (Avenida España).
The proposed legislation also provides expanded tax breaks for investment in all municipalities in Puerto Plata Province, the Veron-Punta Cana Municipal District, comprised of the sections of Juanillo, Cape Engaño with its sectors, La Salina, La Cuevita and Suero, and El Salado, with Bavaro sectors of Cortecito, Cabeza de Toro, Arena Gorda, Macao and Uvero Alto, so also the Samaná Province and its townships.
The initiative aims to attract investments in hotels, resorts, hotel complexes and / or existing structures, with 100 percent of import duties and other taxes for machinery, equipment, materials and properties, need to modernize, improve and remodel of such facilities, subject to its requirements, provided they have at leas five years since built.
In the message to the lower Chamber, Medina says the tourism market is in constant change and trends and needs aren’t the same as when the current law was enacted and the tough international competition forces existing hotel facilities to constantly renovate and modernize.
The ruling PLD party has an overwhelming majority in both chambers of Congress, for which the bill is expected to pass with little or no opposition.
Category: DR News |