Senate approves tax exemptions for luxury vessels in the Dominican Republic
Santo Domingo.- In a second reading, the Senate has granted approval to a contentious bill that offers tax exemptions to a specific category of luxury vessels, encompassing yachts and sailboats.
The approved project, which was passed during an extraordinary Senate session, stipulates that yachts, competitive yachts, motorboats, personal watercraft like jet skis, sailing boats, and other similar vessels will be exempt from taxes for a period of ten years, commencing from the date of the law’s promulgation.
This initiative, introduced by Senators Alexis Victoria Yeb and Ginette Bournigal, also outlines that investments made in infrastructure developments intended to promote recreational nautical tourism will enjoy tax benefits. Article 48 of the project further exempts real estate taxes on land and improvements utilized in nautical activities.
Paragraph two of article 48 specifically states, “Complete exemption from import duties, contributions, or liens applicable to the importation of materials, equipment, furniture, and accessories used in the construction, renovation, and commercial outfitting of the service activity or products associated with recreational nautical tourism.”
Supporters of the project argued that the Dominican Republic possesses significant potential to harness recreational nautical tourism, citing the country’s unique geographical advantage, with 75% of its border adjacent to the sea.
The bill’s objectives underscore promoting nautical tourism by establishing regulations governing navigation and nautical equipment for recreational, private, and commercial purposes.
The legislation excludes maritime vessels engaged in commerce, scientific research vessels, artisanal fishing vessels, and auxiliary port vessels from its provisions.
The proposal will now move forward for consideration in the Chamber of Deputies.