Economy September 30, 2019 - 10:14 am

11 companies mull IPOs with trusts, bonds

Santo Domingo.- Securities superintendent Juan Ernesto Jiménez recently revealed that some 11 companies explore their entry to the stock market through trusts and corporate bonds, and others that only await the update of the regulatory and tax framework to launch their IPO

He said to date there are five approved public IPOs for trusts, but that there are currently legal and tax hurdled that stop the issuance of corporate shares in the capitals market.

“There is currently a tax lock in relation to the issuance of shares, one of a legal nature, which is the one that was introduced in the tax reform of 2012 and which says that the one who buys a share is a joint guarantor of the capital gain that could having had and an administrative resolution that the DGII (Inernal Taxes) has that says that the person who sells a share to a certain type of investor has to pay 1% of the value of the income for possible capital gain.”

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