Countries › Dominican Republic › Guide › 6. Taxes › Tax incentives in the Dominican Republic: regimes, terms and the new rule of one regime per activity

Tax incentives in the Dominican Republic: regimes, terms and the new rule of one regime per activity

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

Major regimes cover free zones, tourism under Ley 158-01, the border zone under Ley 12-21, renewable energy, industry under Ley 392-07, international financial zones and pensioners. Since Ley 30-26, a taxpayer cannot stack two incentive regimes on one activity, and Hacienda must run a cost benefit review before classification. Several older exemptions were cut back in 2012.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.8594 per US dollar for 28 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Tourism exemption term	15 yearsLey 158-01 art. 7, as of 2026-10-30 · in force
Border zone term	30 yearsLey 12-21 art. 5, as of 2026-10-30 · in force
Free zone income tax relief	100 %Ley 8-90 art. 24, as of 2026-10-30 · in force

The rule

1. A taxpayer cannot benefit at once from more than one incentive regime for the same activity, investment or operation.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 2-1, 2026-06-18 official text · verified 2026-10-30 · changed: New rule.

2. Institutions managing incentive laws must send Hacienda y Economía a feasibility study before classification for a cost benefit review, and Hacienda can recommend that the Executive object to it.Ley 253-12 as amended by Ley 30-26, art. 45, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 9 added the objection mechanism.

3. Free zone operators and companies have 100% relief from income tax and from listed taxes.Ley 8-90, art. 24, 1990-01-15 official text · verified 2026-10-30

4. Approved tourism projects get relief from income tax and from import and other taxes on equipment for 15 years from completion of works, with three years to begin operations.Ley 158-01 as amended by Ley 195-13, art. 4 and art. 7, 2013-12-13 official text · verified 2026-10-30

5. Classified companies in the seven border provinces get 100% relief from income tax and other listed reliefs for 30 years from the law, with a review within ten years of the operating licence. Licences lapse if operations do not begin in two years.Ley 12-21, art. 4 and art. 5, 2021-02-22 official text · verified 2026-10-30 · changed: Replaced the earlier 20 year regime of Ley 28-01, which ended on 1 February 2021 according to the law.

6. Renewable energy equipment can get 100% import tax relief. Ley 253-12 removed income tax exemptions in arts. 10 and 23 and cut the art. 12 self producer credit from up to 75% to 40%.Ley 57-07 art. 9 and art. 12; Ley 253-12 art. 32, art. 9, art. 12 and art. 32, 2012-11-09 official text · verified 2026-10-30

7. Companies qualified by PROINDUSTRIA that export to third markets can seek refunds under its art. 25, and art. 24 extends import reliefs to equivalent local purchases.Ley 392-07, art. 24 and art. 25, 2007-12-04 official text · verified 2026-10-30

8. International financial zone users and operators get 100% relief from income and capital gains tax and listed taxes on operations under the law.Ley 480-08, art. 44, 2008-12-11 official text · verified 2026-10-30

9. Textile, apparel and footwear companies get reliefs from ITBIS and income tax if authorized by the Free Zones Council.Ley 56-07, Operative articles, 2007-05-04 official text · verified 2026-10-30

10. Pensioners and rentiers get income tax relief on the declared income, partial exemptions on property transactions and customs relief on household goods.Ley 171-07, art. 10 to art. 13, 2007-07-13 official text · verified 2026-10-30

11. DRAFT, NOT IN FORCE. The draft regulation would allow general credits alongside a regime, and allow different regimes for different activities with separate books. Hacienda could object if the project is profitable without incentives or distorts the sector.Draft regulation of Ley 30-26, art. 1 and art. 7, 2026-10-30 official text · verified 2026-10-30

Regime	Law	Main relief	Term
Free zones	Ley 8-90	100% income tax and listed taxes	Per licence
Tourism	Ley 158-01	Income tax, import and other taxes	15 years
Border	Ley 12-21	100% income tax and others	30 years
Renewables	Ley 57-07	Import tax relief; 40% credit	Per project
International financial zones	Ley 480-08	100% income and gains	Per authorization
Pensioners and rentiers	Ley 171-07	Income tax on declared income	While resident

Regimes at a glance

Worked example

A US$10 million border plant earning RD$30,000,000 (about US$492,939.46) a year avoids RD$8,100,000 (about US$133,093.66) of income tax at 27%, subject to classification and the review of its cost benefit analysis.

Step by step

Pick one regime for each activity.
Prepare a feasibility study for the cost benefit review.
Apply to the relevant council.
Keep separate books if running several activities.
Track licence deadlines.

Common traps

Art. 2-1 can force a choice between regimes that used to overlap.
Classification can be objected to by Hacienda even if the sector qualifies.
Incentives may not cover withholding on payments abroad or dividends, so read each law.
Dividends from free zones are referred to in art. 308 paragraph III.

Sources

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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