New Constitution

The National Congressional Assembly proclaimed the new Constitution of the Dominican Republic, which took effect immediately, and supersedes the prior Constitution, that had been amended in 2002. Among other things, the new Constitution of the Dominican Republic enshrines the fundamental rights of Dominican citizens that were included in the previous Constitution and establishes new rights, such as the right of popular legislative initiative, whereby a number of citizens, no less than two per cent of registered electors, may introduce bills before Congress. The judicial processes of «habeas corpus» and «amparo» designed to protect citizens against injustices from the government have also acquired constitutional status.

Moreover, public defense and free legal assistance ware also included by creating a branch within the justice system with the purpose of ensuring the effective protection of the fundamental right to defense. The Constitutional Court, the Superior Electoral Court, administrative courts, the Judicial Council, the Higher Council of Public Prosecutions were created and the office of the «Ombudsman» (the defender of the public) was given constitutional status. The Secretaries of State will also henceforth be denominated Ministries and the individuals holding the highest ranking office in such ministries, shall be called ministers.

Tourism

The Central Bank reported that the tourism sector has been registering an important improvement so far this year. During the month of January, the inflow of tourists increased by 5.81% compared to the same month last year. It is estimated that this increase is due to the constant international promotions made by the public and private sectors abroad, the strong winter season suffered in countries where tourism to the country typically originates, and the arrival of missions and passengers that are using the Dominican Republic as a bridge to aid in the recovery of Haiti.

Executive Decrees: Coordination Of The Electrical System

The President provided, by Presidential Decree, certain rules on the operation of the energy sector. Following the reacquisition by the State of some of the companies that had been privatized, the executive branch understood it relevant to establish the mechanisms for internal governance and effective coordination to enable the structuring and establishment of comprehensive policies that are aligned to the common interest of the State.

In this regard, the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) was appointed as leader and coordinator of all strategies, objectives and activities of the electrical companies owned by the State. The decree states in Article 2 that the CDEEE is responsible, through its Board of Directors, for approving the general guidelines and comprehensive policies for the development of the national electricity sector in the short, medium and long term.

The Decree allows for the subscription of agreements between governmental entities for the implementation, or enforcement of various obligations associated with the operation of the energy sector.

Sworn Declarations Of The Real Estate Property Tax (IPI)

Any individual owning a house, apartment, villa, commercial unit, urban lot, etc. must present a declaration and proceed to pay the Real Estate Property Tax (IPI). The tax is of 1% and applies to those properties with a value exceeding RD$5 million and applies to each property individually. Payments must be made in two installments of 50% each, and the first installment must be paid before March 11 of this year. A second installment must be paid before September 13 of this year.

It is important to note that even in those cases where the properties owned by individuals are exempt from payment of the 1% for the IPI, the declaration must be submitted regardless during the first 60 days of each year.

Individuals of 65b years or more are exempt from this tax, as long as the property they own had not been transferred within the last 15 years and the owner uses such property as a residence.