President Luis Abinader today promulgated the amendment to the Proindustria Law, which aims to increase the competitiveness of the national industry, strengthen the value chain and boost national exports through a series of measures aimed at the renewal and modernization of the manufacturing sector. national.
This new law amends Articles 4, 9 and 17 of Law 542-14 on innovation and industrial competitiveness and From now on, the tax incentives envisaged therein will be extended by 15 years, according to a statement.
It also corrects fiscal distortions, makes it easier to produce, stimulates local industry exports, allows for compensation for the payment of the transfer of goods and services tax (ITBIS), and eases the production chain between the industrial sector and the industry. free zones. which should translate into increased sales of local industries to land-based free zones, which to date import more than US $ 3.6 billion of inputs into their production annually.
President Abinader signed the document and gave copies to businessmen in the industrial sector of the Dominican Republic.
This new law is intended to maintain competitiveness and stimulate innovation in local micro, small and medium-sized enterprises to achieve the positioning of national manufacturing in international markets, the note notes.
Incentives from the law for qualified industries
This law, on competitiveness and industrial innovation, allows industrialists to reinvest their profits and deduct them from the payment of income tax, that is to say that they invest the investment in new machines in the previous year’s financial year up to 50% net taxable incomeIt also makes it possible to hire international consultancy firms on innovation without ISR (Income Tax) withholding tax) already an international consultant and import raw materials, machinery and capital goods and pay only 50% of the ITBIS to the Directorate General of Customs (DGA).
This piece of legislation will be a tool to stimulate production in the country and create the necessary conditions Promote modernization and innovation in national industry by correcting fiscal distortions that have limited the competitiveness of our productive sectors.
In this sense, the text specifically identifies the types of raw materials, machinery and capital goods whose renewal and modernization are encouraged, while also avoiding the intended benefits for the industrial sector being channeled and used for other purposes.
This law aims to boost production across the Dominican industrial sector, focusing on the food and beverage, construction, cosmetics, plastics, pharmaceuticals sectors, which will now benefit from these incentives.
The promulgation of this law takes place as part of the Decree 588-20 declaring industrialization a national priority, articulated with actions by the Ministry of Industry, Trade and Mipymes (MICM) as a key element in the reactivation of the Dominican economy following the effects of Covid-19.