Article 39 of the Dominican Republic’s Law For The Fostering of Film Activity (No. 108-10) introduces a Transferable Tax Credit (TTC) to promote foreing film production within the country. This provision allows production companies to receive a tax credit equal to 25% of all expenses incurred directly in the development, pre-production, production, and post-production phases of their films. The credit is versatile; it can be used to offset income tax obligations or transferred to other eligible taxpayers.

In addition to the TTC, the law provides an 18% VAT exemption on goods and services directly related to the filmmaking process, including pre-production, production, and post-production expenses. To qualify for these incentives, production companies must register at DGCINE and adhere to specific requirements, such as engaging with local production companies or establishing a legal presence in the Dominican Republic.