A bill—recently introduced in the Dominican Senate—would provide for new mining legislative rules, by amending the current mining law as well as updating certain related rules.
From a fiscal and tax perspective, the bill would provide for a grant of certain incentives, such as an exemption from customs duties arising from the import of equipment and machinery, as well as a tax exemption on dividend distributions or similar payments made abroad. Additionally, the bill would introduce a fiscal stability regime that is intended to provide investment security for mining projects during a specified period.
The bill would update the definition of a “mining patent” and would introduce non-metallic mining into the concession system. Moreover, the legislation (as proposed) would implement a warranty system related to the benefits generated by mining operations and concerning their environmental impact.
The requirements and conditions for tax benefits and incentives under the proposed changes to the mining law regime may be subject to changes during the legislative process and debates on the bill in the Senate and lower chamber of the Dominican Republic.
Read a September 2019 report [PDF 204 KB] prepared by the KPMG member firm in the Dominican Republic
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