Share with your friends

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.


Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal