Dominican Republic Customs Increases Tax Break for Nationals Living Abroad

Miguel Cocco, head of the Dominican Customs Department recently announced that Dominicans living abroad returning to the DR during these coming holidays will be allowed to bring tax-free gifts up to US$2,500 in value, a US$1,000 increase from last years limit. The measure, allowed under law 9-96, will be effective starting November 1^st. To qualify Dominicans must not have come into the Dominican Republic within six months of their entry during the holidays.

Dominican Republic Ranks Second in Economic Growth

The International Monetary Found revealed that the Dominican Republic’s economy has grown 8% during 2007, second only to Panama (8.5%) among all Latin American countries. The FMI praised both the Dominican Republic and Panama for getting ahead of Venezuela and Mexico, the region’s top oil-producing countries, by concentrating their efforts in developing their comparative advantages, regardless of their need for foreign oil supplies.

Tropical Storm Noel Spared Tourism Industry

Tropical Storm Noel slowly passed through the Dominican Republic leaving behind ~50 dead, millions in agricultural crop damages and thousands evacuated from their homes. Damages were seen mostly in the southern region of the country, far from the country’s major resort towns, including Bavaro, Punta Cana, Bayahibe, Luperon, La Romana, Puerto Plata, Las Terrenas, Samana, Cabarete, Sosua, Constanza and Jarabacoa.

Fernandez Creates Transitory Free-zone Industry Subsidy Fund

President Fernandez recently issued presidential Decree 552-07, which calls for the creation of a fund that would subsidize the Dominican Republic free zone industry for a nine-month period. The fund would prevent further losses in the industry, a sector of the Dominican Republic’s economy which has been severely affected by increasing pricing competition from China on apparel contracts. Distribution will be made based upon the free zone company’s fixed workforce.

This new measure comes at a time when the Dominican Republic free zone sector is experiencing an abrupt business model trend change from textile assembling facilities to more service oriented ones, such as calling centers which cater their services to US, Canadian and British corporations.