The recent technical and tax law has stimulated the development, production, dissemination, and preservation of films on Dominican soil. Law No. 108-10 for the Promotion of Film Activity and its regulations create and organize a series of governmental structures responsible for overseeing the film industry and channeling incentives, such as the General Directorate of Film (“DGCINE”) a promotional agency of the national film industry; the Inter-sectoral Council for the Promotion of Film Activity in the Dominican Republic (“CIPAC”), a governing body composed of government officials and industry professionals; the System of Information and Registration of Dominican Film (“SIRECINE”), a database of qualified professionals; and the Film Promotion Fund (“FONPROCINE”), a financial institution for Dominican projects administered by CIPAC through DGCINE. Under this system, film projects and their budgets must be submitted to the DGCINE before starting pre-production; DGCINE serves as a single source for other permissions such as the filming permit that allows filming on public property and the necessary environmental permits.
The law provides significant incentives to filmmakers, including that once a project has exceeded a minimum of a USD$500,000.00 investment, 25 percent of the approved DGCINE budget is deductible from the income tax the producer has to pay. This exemption may be transferred.
There also is a general exemption affecting services subject to value added taxes, permits for the temporary importation of necessary equipment, and an exemption up to 100 percent of the income tax for movie studios and movie theaters. Foreign films produced in the country also enjoy tax exemptions and customs facilities, as mentioned above.
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After some months of suspension, the government of the Dominican Republic has authorized the reopening of the film industry including all audiovisual projects. The Dominican Republic Film Commission (DGCINE) is a decentralized institution of the Dominican State, with legal personality, with administrative, financial and technical autonomy, attached to the Ministry of Culture. The DGCINE was created as a result of the enactment of Law No. 108-10, with the purpose of promoting and encouraging the development of a national film industry, administering the tax incentives created by Law No. 108-10, positioning the country as a destination for locations for foreign productions.
Transferable Tax Credit (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 preproduction, production & postproduction of 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.
“The audiovisual industry reported more than five thousand people working directly on 101 works or productions shot in Dominican locations during 2021, and moved more than RD$15 billion (US$263.1 million) in the economy.
Those figures directly affect in sectors such as hospitality, transportation, construction, food and beverages, as well as small suppliers of products and services.
The Dominican Republic hosts some of the largest studios and audiovisual content companies in the world like Paramount Pictures, Netflix, Universal, Lions Gate and Disney. The economic projections of the cinematographic sector are promising. “By 2022, the government forecasts spending on foreign productions of at least 195 million dollars.”
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Sandra Bullock and Daniel Radcliffe praise the Dominican Republic after filming ‘The Lost City’ in the country;
Arap Bethke: “Dominican cinema is going through a great moment”.