DR Film Incentives

Article 39 – Transferable 25% Tax Rebate (TTC):

Film Producers may benefit from a TTC equal to 25% of all expenses incurred in the Dominican Republic that are directly related to the development, pre-production, production and post-production on their films. The credit may be transferred in favor of one or several Dominican taxpayers. Up-front monetization solutions are also available in the country.

note: The tax credit cannot be transferred for less than 60% of it’s value.

VAT Exemption

In addition to the TTC, goods and service expenses that are directly related to pre-production, production and post-production are exempt from tax on the transfer of services ans industrialized goods (value added tax of 18%).

Application Requirements

1. The Expenses must be incurred by Dominican tax payers. Foreign producers should: a)Engage the services of a local production company that is registered at the Film Commission, or b) Constitute a company in the DR; registered at the Dominican Chamber of Commerce, as a national taxpayer and as a production company at the Film Commission.
2. Shooting Permit (SP). A mandatory shooting permit must be issued by the Film Commission. Foreign producers must write a letter addressed to the film commissioner requesting the SP and expressing their intention to apply for the transferable tax credit.
3. Foreign productions must comply with the minimum Dominican personnel requirements: 25% *the Film Commission has the ability to make necessary adjustments.

Qualifying Productions: Feature Films, documentaries, TV Series & mini series, music videos and soap operas.

Minimum spend: US$500,000 – No project cap

Screen Credit Required: Yes

Loan out withholding for foreign persons: 27%

Excluded Expenses: Expenses pertaining to marketing & distribution of the film are excluded, as well as financial costs, costs related to completion bonds and insurance policies, unless these acquired from a Dominican insurance company. The VAT exemption does not cover expenses incurred in the development stage of production.

*A shooting permit is issued for a specific filming period or 2 years maximum, upon the producer’s request.

*The transferable tax credit certificate is valid for 4 fiscal years. The certificate may be transferred at any time during the valid period.