Proposed reforms involve income tax, VAT, excise tax, and special tax regimes
The Executive Branch on October 8, 2024, introduced a comprehensive 鈥渇iscal modernization law鈥� to the National Congress. The proposed reforms encompass a wide range of changes across various tax categories, including income tax, value added tax (VAT), excise tax, and special tax regimes.
The proposed legislation introduces new income tax brackets, changes VAT exemptions and rates, and establishes new excise taxes on products such as tobacco and sugary drinks. Additionally, the reform aims to modernize tax administration by incorporating digital services into the taxable base and streamlining tax compliance procedures for individuals and businesses.
The draft law also proposes the elimination or modification of numerous tax incentives and exemptions currently enjoyed by various sectors, such as the film industry, tourism development, and mining. For instance, the incentives provided under Law No. 158-01 for tourism development would be repealed, and exemptions for mining concessionaires would be eliminated. The reform also introduces new measures such as a vehicle circulation tax and a contribution on liquefied petroleum gas.
Read an October 2024 report (English)听补苍诲 (Spanish) prepared by the 乐鱼（Leyu）体育官网 member firm in the Dominican Republic