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Countries › Dominican Republic › Guide › 3. Investing › Film incentives in the Dominican Republic: the 25% transferable tax credit under Ley 108-10

Film incentives in the Dominican Republic: the 25% transferable tax credit under Ley 108-10

Last verified: 2026-10-30 · Status: Stable

Productions shot in the country can claim a tax credit of 25% of local spend, once spend reaches US$500,000, and sell it to any taxpayer. Buyers can use it against up to 25% of their income tax in a year. Some of the other film reliefs in the law had fixed terms that began in 2010 and appear to have run out.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Transferable credit on local spend25 %Ley 108-10 art. 39, as of 2026-10-30 · in force
Minimum spend to claim500000 USDLey 108-10 art. 39 paragraph II, as of 2026-10-30 · in force
Yearly cap on use by a buyer25 % of income tax payableLey 108-10 art. 39 paragraph IX, as of 2026-10-30 · in force
Maximum time from validation to certificate90 calendar daysLey 108-10 art. 39 paragraph V, as of 2026-10-30 · in force
Local staff share for foreign productions25 %Ley 108-10 art. 39 paragraph III, as of 2026-10-30 · in force

The rule

1. People who produce Dominican or foreign films and audiovisual works in the country can opt for a credit equal to 25% of all spending made in the Dominican Republic. It offsets any income tax or can be transferred to any person for the same purpose.Ley 108-10 art. 39 as replaced by Ley 82-13, Ley 82-13 art. 2, 2013-06-27 official text · verified 2026-10-30 · changed: Ley 253-12 art. 34 had limited use of the credit to the producer in 2012. Ley 82-13 of 27 June 2013 rewrote art. 39 and restored transfer to third parties.
2. Counted spending covers pre production, production and post production, including goods, services, rentals and national or foreign staff, backed by invoices. DGCINE must first authorize the budget.Ley 108-10 art. 39 paragraph I, art. 39 paragraph I, 2013-06-27 official text · verified 2026-10-30
3. The credit can be claimed once spending made reaches US$500,000, even if it spans more than one fiscal year. One producer can add several works in a single fiscal period to reach the amount.
Example: Local spend of RD$121,801,400 gives a credit of RD$30,450,350. / Local spend of US$2,000,000 gives a credit of US$500,000.Ley 108-10 art. 39 paragraph II, art. 39 paragraph II, 2013-06-27 official text · verified 2026-10-30
4. In foreign productions, staff costs count if Dominicans or residents make up at least 25% from the sixth year of the law. DGCINE can reduce the requirement if the skills are not available.Ley 108-10 art. 39 paragraphs III and IV, art. 39 paragraphs III and IV, 2013-06-27 official text · verified 2026-10-30
5. DGCINE validates spending within 30 calendar days and sends a certificate to DGII, which issues endorsable certificates. The whole process may not take more than 90 calendar days.Ley 108-10 art. 39 paragraph V, art. 39 paragraph V, 2013-06-27 official text · verified 2026-10-30
6. The credit can be transferred wholly or partly, once only. Each transfer is registered with DGII within 90 days. The buyer can use it in the period of purchase and the next three.Ley 108-10 art. 39 paragraphs VI and VII, art. 39 paragraphs VI and VII, 2013-06-27 official text · verified 2026-10-30
7. The buyer cannot use more than 25% of its income tax payable in the year, alone or together with the art. 34 credit.
Example: A buyer with income tax of RD$40,000,000 can use up to RD$10,000,000 in that year. / Income tax of US$656,806.90 allows US$164,201.73.Ley 108-10 art. 39 paragraphs IX and X, art. 39 paragraphs IX and X, 2013-06-27 official text · verified 2026-10-30
8. A work that takes the transferable credit gets no other tax or promotion incentive, except the ITBIS exemption.Ley 108-10 art. 39 paragraph VII (second) and art. 40 paragraph, art. 39; art. 40 paragraph, 2013-06-27 official text · verified 2026-10-30
9. Goods, services and rentals directly tied to approved works and listed as proper to the film industry in the regulation are free of ITBIS.Ley 108-10, art. 40 paragraph, 2010-11-18 official text · verified 2026-10-30
10. Companies investing in entities that only produce approved Dominican feature films can deduct 100% of the real value invested from income tax due, up to 25% of the tax payable for the year.Ley 108-10 art. 34 as replaced by Ley 257-10, art. 34 and paragraph I, 2010-11-18 official text · verified 2026-10-30
11. To use the incentives a work needs a Single Shooting Permit, liability insurance, SIRECINE registration (not needed for foreign films made in the country), 20% of the budget spent in the country or 20% Dominican capital, and minimum Dominican participation. Foreign films produced here can use all the incentives except the promotion fund.Ley 108-10, art. 33 and paragraph I, 2010-11-18 official text · verified 2026-10-30
12. With a Single Shooting Permit, equipment and goods can enter temporarily for six months, renewable.Ley 108-10, art. 43, 2010-07-29 official text · verified 2026-10-30
13. New cinemas have 50% income tax relief in the Distrito Nacional and Santiago and 100% elsewhere for 15 years on their income.Ley 108-10, art. 37 and paragraph, 2010-07-29 official text · verified 2026-10-30
14. Studios had 100% income tax relief for 15 years from the law, and technical service providers and reinvested profits had relief for ten years from it. Read literally those periods ran from 2010; no extension was found.Ley 108-10, arts. 35, 40 and 41, 2010-11-18 official text · verified 2026-10-30
StepWhoTerm
Budget approvalDGCINEBefore spending counts
Spend validationDGCINE30 calendar days
CertificatesDGIIWithin 90 calendar days overall
Transfer registrationBuyer at DGII90 days
UseBuyerPeriod of purchase and next three

How the credit moves

Worked example

  • A foreign series spends US$2,000,000 (RD$121,801,400) in the country, with 25% local staff, and gets a credit of US$500,000 (RD$30,450,350). A bank with income tax of RD$150,000,000 (US$2,463,025.88) buys it at a negotiated discount and can use up to RD$37,500,000 (US$615,756.47) a year. The price is a private matter; the law sets no discount.

Step by step

  1. Get the budget authorized by DGCINE and the Single Shooting Permit.
  2. Hire to the 25% local staff test, or seek a reduction first.
  3. Keep invoices in order for each expense.
  4. File for validation once spend reaches US$500,000.
  5. Sell the certificates and have each buyer register within 90 days.

Common traps

  • Local spend counts only with a budget authorized in advance.
  • A buyer cannot resell the credit.
  • Art. 39 paragraph numbers repeat: the text has two paragraphs VII. Cite the wording, not only the number.
  • Press reports describe a 2024 proposal to cut the film incentives, later withdrawn, and a 2025 bill on tax regimes. Check for changes before pricing a credit.
  • The Ley 30-26 non stacking rule also applies, in addition to the single incentive rule inside art. 39.

Sources

Related pages

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X

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