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
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