President Luis Abinader today enacted the amendments to the Proindustria Law 542-14. The amendments establish mechanisms to increase the competitiveness of manufacturing, strengthen value chains and stimulate national exports. The measures provide incentives for manufacturers to renew and modernize their industries.
Articles 4, 9 and 17 of Law 542-14 on Innovation and Industrial Competitiveness are amended to extend the fiscal incentives for 15 years. The law now incorporates facilities for improved linkages between free zone industries and local industries.
President Abinader said the legislation will help create more jobs. The new law also seeks to encourage innovation in micro, small and medium local enterprises to foster exports.
The law allows manufacturers to reinvest their profits and deduct up to 50% of these from the income tax payments. It also allows for hiring international consulting firms in innovation without having to withhold taxes. It also establishes a 50% reduction on ITBIS taxes on the import of raw materials, machinery and capital goods.
The enactment of the law amendments come within the framework of Decree 588-20 which declares industrialization as a national priority.
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Presidency
28 December 2020