The Executive Branch has sent a bill to Congress aimed at modifying Pro-Industria Law 392-07. The bill adds incentives for manufacturing, including a provision that would extends time given for renewal and modernization of industries that qualify. Art. 50 would be modified so that the provision that had set five years for the renewal of the companies is extended for an additional three years. The new bill establishes that during that time the industries can apply for a procedure for accelerated depreciation, thus duplicating the depreciation percentages that apply to the different asset categories. They will also be able to deduct investments made in machinery, equipment and technology for up to 50% of the taxable income.
The bill mandates industry will pay the Customs Agency (DGA) at a rate of 1% of ITBIS (VAT) on the import of raw materials detailed in Art. 24 of Law 557-05.
Herrera Industries Association (AEIH) president Victor Castro praised the Presidency for submitting the bill to Congress in response to requests made by manufacturers.