President Luis Abinader promulgated the amendment to the Industry Council, which procures to increase the competitiveness of the national industry, forecloses the value chain and estimates national exports in the wake of a series of media aimed at renovation and modernization.
This new law modifies Articles 4, 9 and 17 of Law 542-14 on Innovation and Industrial Competitiveness and from now on extends for 15 years the tax incentives contemplated in the case, followed by a communication.
In addition, it will correct tax distortions, will produce more easily, will increase the exports of the local industry, allow compensation of the tax on the transfer of goods and services (ITBIS) and facilitate productive incentives between the industrial sector and the free zones, which will have to be translated into major mayors from the local industries to the francs installed in the country that has a maximum import of US $ 3,600 million annually in production.
The President Abinader signed the document and issued copies to the employees of the industrial sector of the Dominican Republic.
This new procedure will strengthen the competitiveness and motivate innovation in micro, small and medium local companies to record the position of national production in the international markets, detail the note.
Incentives from the industry to qualified industries
This law, on Competitiveness and Industrial Innovation, will allow industrialists to recoup their utilities and reduce the amount of the tax on interest, or allow them to count their investment in new machinery in the previous fiscal year up to 50% of net neta imponible, also allows to consult international consultants on innovation and retention matters of ISR taxes (Tax on Pensions) to international advisor e import prime materials, machinery and capital goods only 50% of ITBIS to the Aduanas General Board (DGA).
This legislative piece will be a mandate to incentivize production in the country, providing the necessary conditions for promote modernization and renovation in the national industry through the correction of fiscal distortions that limit the competitiveness of our productive sectors.
In this sense, the specific textual text of the types of prime materials, machinery and capital goods with renovation and modernization is incentive, while avoiding that the benefits for the industrial sector are channeled and used for other purposes.
This procedure will motivate all production in the Dominican industrial sector, including the food and beverage, construction, cosmetic, plastic, pharmaceutical and other sectors, which may benefit from these incentives from the past.
The promotion of this song is produced as part of Decree 588-20 declaring industrialization as a national priority, articulated with actions by the Ministry of Industry, Commerce and Industry (MICM), as key piece in the reactivation of the dominant economy, through the effects of the Covid-19.