Dominican Free Zones Association president Aquiles Bermudez says that the measures announced by President Danilo Medina could result in a 70% in decline in jobs in the sector.
As reported in Listin Diario, Bermudez said the free zones would lose their competitive edge. The proposal for increased taxation includes a 10% tax on dividends and eliminates tax exemptions. Bermudez said that 65% of free zone companies operating in Dominican free zones are foreign and that 70% of the 135,000 jobs in the sector would be at risk.
The proposal is for free zones to pay 5% tax on gross sales in the local market.