Dominican Republic: Tax relief for public-private alliance projects
Dominican Republic: Promoting public-private alliances
A new regime is intended to promote alliances between the government and the private sector by providing special tax relief for eligible projects.
The new tax regime is pursuant to measures contained in Law 47-20. The new rules aim to promote public-private alliances that: (1) contribute to the economic growth of the Dominican Republic; and (2) promote the flow of investment funds that in turn broaden and modernize the public services network.
Among the tax relief measures for eligible public-private alliance projects are the following:
- A temporary value added tax (VAT) relief (refund) mechanism that, for a period of five years, applies to the purchase or rental of equipment, materials, and supplies directly related to a construction project, or to the repair or expansion of infrastructure projects
- Accelerated depreciation or amortization regarding eligible projects
Read a March 2020 report [PDF 218 KB] prepared by the KPMG member firm in the Dominican Republic
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