Santo Domingo. The general director of the Dominican Institute of Civil Aviation Idac, Héctor Porcella, said that Law 57-23 will turn the Dominican Republic into a continental air hub and one of the most attractive destinations for international investment. with a great impact on the generation of employment and wealth for the country.
Porcella made the remark during his participation in the panel «Impact of the new Aviation Law of the Dominican Republic on the economy», organized by the Chamber of Commerce of Santo Domingo, with the participation of the president of that institution, Lucile Houellemont; the director of IDAC Héctor Porcella, the chairman of Arajet; Víctor Pacheco; the former president of Asonahores, Enrique de Marchena; and the Deputy Director of Compliance Management of the General Directorate of Internal Taxes, Ricela Sprauss, among others..
The new Law 57-23 on the promotion of civil aviation could have a great impact on the country’s economy and trade, generating more than 50 thousand direct and indirect jobs in the next 5 years, representing a growth of the Gross Domestic Product of almost 3%.
The speakers agreed that this new Law provides the country with a legal framework that allows to have criteria of competitiveness against the international aeronautical industry, so that national airlines can compete on equal terms, which have a positive impact on Dominican economic growth.
Pacheco made a presentation comparing the legal fiscal framework in which the Dominican Republic is now left compared to other countries in the region such as Panama, Colombia or Mexico. and concluded that this new law is vital for successful commercial aviation in the country. «The initiative of the State must be applauded because without this law it was impossible to create a national airline that could be competitive; But from now on we will see how, thanks to this legal framework, passenger traffic will double in the country by 2028,» said the businessman.
.
In her opening remarks, the president of the Chamber of Commerce affirmed that this institution will support each of the initiatives that impact the growth of trade and connectivity with the other countries of the continent in order to continue facilitating business in the Dominican Republic.
Asonahores also supported the initiative because of the impact it will have on Dominican tourism, and the deputy director of the DGII explained how the new law will work, so that Dominican airlines can benefit from the incentives and thus be able to generate the expected economic impact.
The aforementioned regulations provide for the following tax incentives in favor of national commercial air transport operating companies that comply with the requirements set forth in the law:
1. Total exemption from withholding tax for payments of income abroad for the leasing of aircraft or aircraft engines and aircraft maintenance and repair services; engine parts and other aircraft parts;
2. Exemption from payment of the Tax on Assets declared in the General Directorate of Internal Taxes (DGII).
3. Withholding of only five percent (5%) of the tax for payments abroad for training and training of crew personnel, by non-residents; Use and maintenance of computer programs and software related to the operation and the insurance of the aircraft..
4. Exemption from the payment of the Tax on the Transfer of Industrialized Goods and Services (ITBIS) on the sale of full flights by Dominican operating companies to companies abroad (chartering), as long as they are flights originating abroad to the Dominican Republic.
5. Exemption from payment of tariffs and ITBIS on the importation of ships and aircraft falling under subheadings 8802.30.00 relating to aeroplanes and other aircraft, with an empty weight exceeding 2,000 kg but less than or equal to 15,000 kg, and subheading 8802.40.00 relating to aeroplanes and other aircraft, with an unladen weight exceeding 15,000 kg.