Esco Global Strategies
Quick answer: Law 8-90 grants Dominican Republic free zone companies a 20-year full tax exemption — zero income tax, zero import duties, zero export taxes, zero municipal taxes. Any company operating inside a CNZFE-registered free zone automatically qualifies. No minimum investment threshold for the tax benefit.
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What Is Law 8-90?
Law 8-90 (Ley de Zonas Francas de Exportación) is the DR’s free zone framework law, enacted in 1990. It is the legal foundation for all 78 active free zones and governs incentives, compliance requirements, and operational rules for 650+ companies inside them.
Complete Incentive Package
| Tax / Duty | Exemption | Duration |
|---|---|---|
| Corporate income tax (ISR) | 100% | 20 years |
| Import duties — raw materials | 100% | Permanent (in free zone) |
| Import duties — machinery | 100% | Permanent (in free zone) |
| Export taxes | 100% | Permanent |
| Municipal taxes | 100% | 20 years |
| Dividend tax (repatriated) | 100% | 20 years |
| ITBIS (VAT) on imports | 100% | Permanent |
What Law 8-90 Does NOT Cover
Employment-related taxes (social security, AFP pension contributions) apply normally. Goods sold into the Dominican domestic market are subject to standard import duties and ITBIS. After the 20-year income tax exemption, renewal is available subject to CNZFE review.
The 20-Year Clock
The income tax exemption period begins from the date of CNZFE registration approval — not from when production starts. Companies that delay operations after registration are still consuming their 20-year window. EGS advises clients to begin operations within 90 days of CNZFE approval.
Compliance Requirements
To maintain Law 8-90 status: export 100% of production, maintain CNZFE registration, submit annual operational reports, comply with DR Labor Code 16-92. CNZFE audits periodically.
EGS Law 8-90 Advisory
We structure DR operations to fully capture Law 8-90 incentives, avoid common compliance errors that trigger CNZFE penalties, and plan for the 20-year renewal well in advance.
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Ready to Claim Your Law 8-90 Exemptions?
Law 8-90 eligibility depends on your product category, production structure, and CNZFE zone selection. EGS confirms your qualification and maps the fastest path to your Free Zone Operating License.