The Hollywood Reporter explains:
With the aim of strengthening the local film industry, the Dominican Republic
promulgated Law 82-13, which solidifies and improves the existing film
incentive framework by expanding the scope, term and liquidity of the
competitive 25 percent tax credit on all above and below the line
expenditures related to the production of feature films and TV series.
Announced last Friday, the new legislation is expected to generate direct
and indirect economic output exceeding $1.2 billion, as well as creating
more than 25,000 new high value-add jobs, within the next five years.
The new set-up includes a 100 percent income tax deductibility for Dominican
corporate taxpayers of their investments in eligible Dominican film production
companies, with a maximum direct offset of 25 percent of their year income tax
liability. This provision alone is expected to generate a significant funding base
for eligible Dominican film productions, which must adhere to certain cultural
requirements such as a Spanish language majority and production location in
the DR.
Finally, a substantial long-term 100 percent income tax exemption, for a period
of up to 15 years, is granted to investors promoting the development of new industry
related infrastructures (studios, movie theaters, etc.), and to distribution and technical
service providers that will establish their business in the country.
Earlier this year, the Dominican Republic film industry received a strong input when
the International Finance Corporation, a member of the World Bank Group, announced
a direct investment of $20 million in Dominican-based company Indomina Group, in
addition to facilitating $10 million through a loan syndication placed in the international
banking market.
Indomina is currently undergoing a $70 million construction of Pinewood Indomina Studios
in the Dominican Republic, and will reach a total invested value in the state-of-the-art
infrastructure of $70 million once the construction of the first phase is completed by the
end of this year. The studio’s brand new 60,500-sq. ft. water effects facility was
inaugurated a few weeks ago by Indomina chairman Felipe Vicini, together with
DR president Danilo Medina and Rt. Hon. Hugo Swire, minister of the U.K.
Foreign Office.
“The competitiveness of the Dominican Republic as a preferred film and TV
production destination is a result of an array of the fiscal measures offered
in the country,”
said Vicini, who added that this set of film incentives is a key component to allow
film and TV content producers to partially finance their projects.
July 2013