Among its most important provisions, the law creates an income tax exemption (for domestic and foreign indi- viduals and business entities) for the profits resulting from investments made in fixed instruments and other in- vestments physically placed in the local market.
MONETARY AND FINANCIAL SYSTEMS The regulations applicable to the Dominican monetary and financial system seek to maintain price stability at the national level and to regulate financial intermediaries to guarantee a sound and well supervised bank- ing system. The monetary system is under the control and regulation of the Monetary and Financial Admin- istration, which is comprised by the Monetary Board, the Central Bank, and the Bank Superintendence. To protect the public from arbitrary acts of the Monetary and Financial Administration, the law also created a Monetary and Financial Tribunal. With the goal of promoting and making financial operations more flexible, the law establishes the principle of free convertibility of the national currency with other currencies. Toward that end, it also provides that par- ties have the right to make transactions in foreign currency in accordance with general contracting rules and that debts will be paid in the currency the parties have agreed. Likewise, the law establishes the free deter- mination of interest rates, which parties can establish based upon market conditions.
FOREIGN INVESTMENT Dominican law provides for equality in the treatment of foreign and national investments. The only restric- tions on foreign investment are those where national security matters are implicated. To promote foreign investment in the country and to enhance exports, the Center for Export and Investment (CEI-RD) has been created. Its mission is to promote exports and to attract foreign and national capital by im- proving the general export and investment climate.
PROMOTION OF NATIONAL COMPETITIVENESS With the goal of promoting the competitiveness of the country’s industries, the Dominican government has recently: 1. Created the National Council on Competition, which is in charge of formulating, implementing, and developing competitive strategies for the Dominican economy.