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Dominican Republic: Special tax regime for cultural sponsorship projects

Dominican Republic: Special tax regime

Law 340-19 (as approved by the executive branch) provides a special tax regime for the promotion of cultural sponsorship projects in the Dominican Republic. The legislation aims to promote initiatives that would contribute to the financing of programs and projects for cultural development in the country.


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The tax incentives under Law 340-19 include certain benefits or exemptions from corporate income tax:

  • “Deductibility” of up to 2.5% of the net taxable income of each fiscal year, for donors and sponsors of approved cultural projects.
  • In this sense, the “deductible” corporate income tax would function through a system of certified fiscal credits, previously approved by the Dominican tax authority (DGII).
  • Furthermore, taxpayers that benefit from this incentive may not simultaneously elect to apply the deduction available for donors of public good institutions established for the public good (under article 287 (i) of the Dominican tax law that is applied as 5% of the net taxable income of the fiscal year, after having offset losses corresponding to previous fiscal years, if applicable).
  • A complete corporate tax exemption (100%) for income generated by program, projects, cultural, and artistic activities that are classified as being of cultural interest by the Cultural Sponsorship Counsel (“CONME” for its acronym in Spanish).

Read an October 2019 report [PDF 188 KB] prepared by the KPMG member firm in the Dominican Republic

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