Dominican Republic: Proposed reduction of tax incentives across multiple sectors

Changes to the tax on free zone business and “special border development zone” incentives, among others

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April 16, 2025

The Chamber of Representatives in March 2025 introduced legislation to reduce or eliminate tax incentives across various sectors to increase government revenue. The bill specifically proposes:

  • Taxes on slot machine imports
  • 20% ad valorem tariff on tobacco imports
  • Increased tax on free zone businesses
  • Comprehensive trust taxation reforms
  • Changes to “special border development zone” incentives
  • Repeal of mining and tourism exemptions
  • Reduction of film industry benefits


For more information, contact a KPMG tax professional in the Dominican Republic:

José Manuel Romero | joseromero1@kpmg.com

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