President Leonel Fernandez has sent a bill to the Senate that authorizes free zones to market all their produce locally. The bill modifies Law 8-90 and eliminates the special free zones. President Fernandez says that the bill paves the way for the country to fulfill commitments with the World Trade Organization and the DR-CAFTA treaty with the US and Central America. <\/p>\n
According to the bill, merchandise produced in free zones will be subject to tax on the ex-factory value, plus shipping. They will also be subject to 16% ITBIS (VAT), the Selective Consumption Tax and a 2.5% tariff on gross sales in the domestic market for income tax. <\/p>\n
The bill establishes categories of general services and technology services for free zone industries and sets up a National Export Council made up of the director general of the Department of Taxes (DGII), the director general of Customs and a representative of the DR Association of Industries, as reported in Hoy.<\/p>\n
The bill seeks to strengthen Santo Domingo’s positioning as a commercial center in the Caribbean. Dozens of world brands produced in local free zones will now be sold at local stores. <\/p>\n","protected":false},"excerpt":{"rendered":"
President Leonel Fernandez has sent a bill to the Senate that authorizes free zones to market all their produce locally. The bill modifies Law 8-90 and eliminates the special free zones. President Fernandez says that the bill paves the way for the country to fulfill commitments with the World Trade Organization and the DR-CAFTA treaty … <\/p>\n