Guzmán Ariza has ample knowledge of the new Cinema Law, which creates a series of tax incentives to participants of the industry with projects in the Dominican Republic, and the firm counsels clients on how to best benefit from the provisions of this law and related regulatory framework.
Film-making Advantages in the Dominican Republic
Tax incentives for the investment in cinematography – Art.34
Dominican companies are entitled to invest up to 25% of their income taxes, in film projects like documentaries, short films, and feature films, every fiscal year, through registered Dominican production companies, previously approved by the General Film Commission (DGCINE), and as such, these investors receive a one hundred percent (100%) tax credit for such investments.
Transferable Tax Credit – Art. 39
Production companies who produce foreign or domestic cinematographic and audiovisual works in the Dominican territory may benefit from a tax rebate equivalent to twenty-five percent (25%) of all expenditures incurred in the Dominican Republic. Such refund may be used against the annual Income Tax declarations or transferred in favor of another natural or legal person for the same purposes