Countries › Dominican Republic › Guide › 3. Investing › Industrial incentives in the Dominican Republic: PROINDUSTRIA qualification under Ley 392-07

Industrial incentives in the Dominican Republic: PROINDUSTRIA qualification under Ley 392-07

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

Ley 392-07 is the regime for manufacturers selling locally or exporting from outside free zones. Qualified companies get a fast customs channel, ITBIS relief at customs on listed goods, refunds in proportion to exports, and no withholding on certain foreign technical services. Developers of industrial parks get 100% relief on building permits and first equipment.

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

Industrial card renewal	2 yearsLey 392-07 art. 42, as of 2026-10-30 · in force
Partial processing term	6 monthsLey 392-07 art. 27, as of 2026-10-30 · in force
Park developer relief on permits and first equipment	100 %Ley 392-07 art. 32, as of 2026-10-30 · in force

The rule

1. The law aims at the competitive development of manufacturing, with industrial parks and districts and links to foreign markets. Manufacturing is the physical or chemical change of materials into new products, including assembly.Ley 392-07 de Competitividad e Innovación Industrial, arts. 1 and 2, 2007-12-04 official text · verified 2026-10-30

2. Industries wanting a park, a district or the programs must apply to PROINDUSTRIA. Its board sets the conditions by resolution. Qualified industries get an industrial card renewable every two years.Ley 392-07 de Competitividad e Innovación Industrial, art. 42, 2007-12-04 official text · verified 2026-10-30

3. A special customs regime with an industrial code gives a fast procedure to qualified companies, which must be rated low risk by Aduanas.Ley 392-07 de Competitividad e Innovación Industrial, arts. 18 and 44, 2007-12-04 official text · verified 2026-10-30

4. Raw materials, industrial machinery and capital goods for the listed industries, and others at a 0% tariff, are free of ITBIS at customs.Ley 392-07 de Competitividad e Innovación Industrial, art. 20, 2007-12-04 official text · verified 2026-10-30

5. Where a special law gives facilities for buying abroad, the same facilities apply to buying goods made in the country. The law lists the regimes under Leyes 8-90, 84-99, 128-01 and 158-01.Ley 392-07 de Competitividad e Innovación Industrial, art. 24, 2007-12-04 official text · verified 2026-10-30

6. Qualified exporters to third markets can get back ITBIS, selective taxes on telecoms, insurance and fuels, and the check tax, at the share that exports represent in total sales.
Example: With exports of 40% of sales and RD$5,000,000 of such taxes paid, the refund basis is RD$2,000,000. / At 40% on US$82,100.86, US$32,840.35.Ley 392-07 de Competitividad e Innovación Industrial, art. 25, 2007-12-04 official text · verified 2026-10-30

7. Goods from a special regime can go to local industry for partial processing and must return transformed within six months, not renewable, free of import taxes.Ley 392-07 de Competitividad e Innovación Industrial, art. 27, 2007-12-04 official text · verified 2026-10-30

8. An authorized park developer has 100% relief from national and municipal building permit taxes and from import taxes and ITBIS on goods for first equipment or first remodelling.Ley 392-07 de Competitividad e Innovación Industrial, art. 32, 2007-12-04 official text · verified 2026-10-30

9. Parks count as unregulated power users and as large fuel consumers that may buy at terminal price, with the developer handling internal distribution.Ley 392-07 de Competitividad e Innovación Industrial, arts. 33 and 34, 2007-12-04 official text · verified 2026-10-30

10. Park users pay PROINDUSTRIA a yearly fee, and developers and users pay a filing fee set by the board.
Cost to do it: Amounts set by PROINDUSTRIA resolution; not found.Ley 392-07 de Competitividad e Innovación Industrial, arts. 35 and 36, 2007-12-04 official text · verified 2026-10-30

11. Companies under the law need not withhold income tax on foreign persons who give them professional services on product, material and process development, R&D, training, innovation and environmental protection, or technical consulting.Ley 392-07 de Competitividad e Innovación Industrial, art. 47, 2007-12-04 official text · verified 2026-10-30

Point	Free zone	PROINDUSTRIA
Income tax	100% exempt	No exemption
Market	Mainly export	Local and export
Customs	Outside customs territory	Fast channel if low risk
Inputs	Duty and ITBIS free	ITBIS relief on listed goods, refunds on exports

Free zone or PROINDUSTRIA

Worked example

A plastics maker sells 70% locally and 30% to Haiti and Jamaica. A free zone does not fit its sales mix. It qualifies with PROINDUSTRIA, keeps paying 27% income tax, gets ITBIS relief at customs on listed inputs and asks for a refund of 30% of the listed taxes paid in the period.

Step by step

Apply to PROINDUSTRIA for qualification.
Seek a low risk rating from Aduanas.
Keep the card current every two years.
Track export share for each refund period.
Check with DGII that the art. 47 relief applies to each foreign service.

Common traps

Art. 20 is tied to the ITBIS list as it stood in Ley 557-05. Later tax laws may have changed that list, so confirm each item with DGII and Aduanas.
Art. 47 relieves withholding only for the listed services. Other payments abroad keep the normal rule.
Ley 392-07 has no income tax holiday. Older summaries that mention one refer to other regimes.
A company with a free zone permit cannot run PROINDUSTRIA benefits on the same activity after Ley 30-26.

Sources

← Renewable energy incentives in the Dominican Republic: what Ley 57-07 still gives after the 2012 cutsFilm incentives in the Dominican Republic: the 25% transferable tax credit under Ley 108-10 →

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