Regulatory Alerts2021-08-30
Law No. 163-21 on the Promotion of Placement and Commercialization of Public Offering Securities in the Securities Market of the Dominican Republic
The National Congress of the Dominican Republic enacted Law No. 163-21 to stimulate the capital market by granting tax exemptions on capital increases and establishing a reduced 15% capital gains tax rate for public offering securities for a three-year period. The legislation introduces a special liability regime protecting buyers from the seller's tax obligations and empowers the National Securities Council to grant temporary differentiated corporate governance treatments to facilitate market entry. These measures aim to democratize investment opportunities, encourage corporate transparency, and foster economic recovery by incentivizing companies to utilize the stock market for financing.
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