Airlines Association requests to modify tax incentives bill

Santo Domingo.- The Dominican Association of Airlines (ADLA) has requested modifications to the tax incentives regime bill approved by the Senate. ADLA aims to ensure the bill fulfills its intended purpose of promoting the development of commercial civil aviation in the Dominican Republic. While acknowledging President Luis Abinader’s efforts, ADLA argues that the Senate-approved version fails to adequately address the fiscal challenges faced by national air operators, hampering their competitiveness.

ADLA has submitted various proposals to the Chamber of Deputies, including the elimination of capital increase taxes, removal of the selective consumption tax on aircraft insurance, reduction of the tax on payments abroad for training and software, and allowing the use of Dominican credit card processors in dollars.

They also seek reconsideration of the exemption of the Transfer Tax on Goods and Services (ITBIS) on flight sales, as the current application negatively impacts productivity and competitiveness. ADLA emphasizes the need for the bill to support all national operators, not just international operations, and suggests extending the five-year term mentioned in the bill. They also call for a clear and efficient process for approving incentives.

ADLA believes the incentives should apply to any national legal entity complying with the new law, subject to supervision and audits by relevant government entities.