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Dominican Republic Law 8-90 is the legal framework governing free industrial zones. It grants companies operating in DR free zones full exemption from income tax, import duties on machinery and inputs, export tariffs, sales tax on goods for export, and restrictions on capital repatriation — with no statutory time limit on the exemptions.
What Law 8-90 Exempts
Income Tax: Free zone companies pay zero corporate income tax on income generated within the free zone. This is a full elimination — not a deferral or credit. Import Duties: Machinery, equipment, raw materials, components, and spare parts imported for use in free zone production are fully exempt from customs duties. Export Tariffs: Goods produced in the free zone and exported are exempt from all export-related taxes and tariffs. ITBIS (VAT): Sales of goods produced in the free zone for export are exempt from Dominican Republic value added tax. Capital Repatriation: Profits earned in the free zone can be repatriated to the parent company without restriction.
Who Qualifies for Law 8-90 Benefits
Any company engaged in manufacturing, assembly, processing, logistics, or services for export can qualify for a free zone operating license under Law 8-90. The company must operate within an authorized free zone park, obtain a CNZFE operating license, and maintain operations that generate employment and add value in the DR.
The CNZFE Regulatory Framework
CNZFE (the National Free Zones Council) administers Law 8-90. CNZFE issues operating licenses, monitors compliance, and maintains the registry of free zone companies. Free zone companies are subject to annual reporting and must maintain their qualifying operations to preserve exempt status.
Law 8-90 and CAFTA-DR Combined Effect
The combination of Law 8-90 exemptions and CAFTA-DR duty-free U.S. access is the structural foundation of the Caribbean Corridor. A company operating in a DR free zone under Law 8-90 pays zero tax on its DR operations AND exports duty-free to the U.S. market — creating a cost structure unavailable through any other single jurisdiction in the Americas. To assess your operation’s eligibility, contact EGS.
RELATED: FREE ZONE SETUP
The full trade and manufacturing framework built on DR free zones.
DR Free Zone Tax IncentivesComplete Law 8-90 exemption guide for foreign companies.
CAFTA-DR Duty-Free GuideHow free zone manufacturing qualifies for duty-free U.S. entry.
Apply to EGSAssess your free zone mandate with EGS.