Tax incentives for film investment in the Dominican Republic

The film industry in the Dominican Republic has experienced remarkable growth over the past two decades, largely driven by a legal framework that encourages local and foreign investment. With the enactment of Law No. 108-10 for the Promotion of Filmmaking, the country established itself as an attractive destination for international filming and as an engine of cultural and economic development.

Within this framework, tax incentives play a crucial role. These facilities allow investors and producers to reduce tax burdens, access tax credits, and benefit from exemptions on key taxes, creating a more competitive ecosystem compared to other markets in the region.

At the same time, they ensure that a significant portion of audiovisual production takes place in the Dominican Republic, promoting job creation, the contracting of local services, and the strengthening of the national industry.

This document presents in a structured manner the main tax incentives in force in the Dominican Republic, the conditions for their application, the benefits derived from their implementation, and the limitations established in the regulations.

A summary of eligibility for different types of audiovisual works is also included, providing a practical guide for investors, producers, and film industry professionals.

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Tax incentives

Transferable Tax Credit (CTF)

• A 25% tax credit is granted on local expenses incurred in the Dominican Republic.
• Applies to both Dominican and foreign works (films, series, documentaries, etc.).
• It requires a minimum investment of US$500,000 in Dominican territory.
• The credit is transferable , allowing its commercialization or monetization.

Who can apply?

• Only a Dominican executive producer (PE) with a RNC and Commercial Registry can apply.
• The credit can then be transferred to the foreign producer, who monetizes it in the secondary market.

Can PE monetize it directly?

Yes. The PE can keep the credit, sell it to a third party, and transfer only the agreed net amount to the foreign producer. It is recommended to establish clear contracts to ensure transparency.

Early monetization

There are early monetization mechanisms through banks or intermediaries, with discounts ranging from 15% to 40% of the face value. By law, credit cannot be sold for less than 60% of its value.

Expenses that qualify for the CFT

They must be expenses:

1. Made in Dominican territory.
2. Linked to pre-production, production or post-production.
3. That generate local tax obligations.

These include: local fees, equipment and location rentals, transportation, lodging, insurance, and technical services contracted in the Dominican Republic.

Not eligible: Marketing, distribution, and development expenses exceeding 3% of the budget, and producer fees exceeding 6%.

Additional conditions

• The EP must be registered in the Cinematographic Information and Registration System (SIRECINE).
• Required: Single Filming Permit, liability insurance, and 25% Dominican staff (for foreign productions).
• Starting May 9, 2025, the Provisional Certificate of Dominican Nationality (CPND) will be required.
• The producer must have the legal rights to the work.

Summary of eligibility according to type of audiovisual work

For quick reference, the following table summarizes the eligibility and exclusions of audiovisual works.