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TAX LAW OF CORRECTION, No. 495-06 THE NATIONAL CONGRESS In the Name of the Republic Law No. 495-06 WHEREAS FIRST: five (5) August 2004, the Dominican Republic signed the Free Trade Agreement United States - Dominican CentroaméricaRepública (USA-DR-CAFTA, for its acronym in English), by which a Zone Free Trade creates; CONSIDERING SECOND: That this agreement, subsequently ratified on September 9, 2005, by the National Congress, through Resolution No. 357-05, leads to major reforms in the tax framework so it is necessary to fully compensate the loss of customs revenue associated with the entry into force of DR-CAFTA; WHEREAS THIRD: That the Dominican government signed on January 31, 2005 a Stand By Arrangement with the International Monetary Fund (IMF), with the aim of achieving economic stability and capable of maintaining the sustainability of economic growth in the short, medium and long term; CONSIDERING FOURTH: That the tax figures provided by Law No. 557-05, dated December 13, 2005, cut in the legislative chambers, have proved insufficient to achieve the tax collection targets expected in 2006; WHEREAS FIFTH: That the Dominican Government is committed to maintaining fiscal discipline and financial stability as one of the pillars of economic growth, improving public accounts, honor commitments internal and external debt, and in turn meet the objectives Millennium. SEEN: Law No.11-92 of May 16, 1992, which creates the Tax Code of the Dominican Republic; VISTA: The No.112-00 Law of 29 November 2000, which establishes a tax on consumption of fossil fuels and petroleum products. VISTA: The No.146-00 Act of 27 December 2000 on the Tariff Reform and Fiscal Compensation. VISTA: The No.147-00 Act of December 27, 2000, on Tax Reform.

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SEEN: Law No.12-01 of 17 January 2001 amending the Laws of Tariff Reform and Tax Reform Nos.146-00 and 147-00, respectively, both of 27 December 2000, which, in turn, modify the Law 11-92 of May 16, 1992 (Tax Code of the Dominican Republic) and 14-93, of 26 August 1993 (HS Code) and its amendments. SEEN: Law No.3-04, of 9 January 2004 amending Articles 367 and 375 of the Tax Code. VISTA: The No.288-04 Act of September 28, 2004, on Tax Reform. SEEN: Law No. 557-05 of December 13, 2005, on Tax Reform. SEEN: Law No. 140-02 of 4 September 2002 amending Article 4 of the Law 80-99, look Bancas Sports. SEEN: Law No. 29-06 of February 16, 2006, amending several articles of Law No. 351 of 1964, which authorizes the issuance of licenses for the establishment of gambling. SEEN: Law No. 8-90 of 15 January 1990 on Free Zones. VIEWS. 226-06 and 227-06 Nos dated June 19, 2006 Laws, which provide functional and administrative autonomy to directorates of Customs and Excise. SEEN: Law No.57-96 dated 6 December 1996 amending the Nos.21-87 Laws of 1987, 2 in 1978 and 55-89 in 1989. SEEN: Decree 03- 05 dated January 6, 2005, which provides for the elimination of tariff exemptions and other taxes. HAS PASSED THE FOLLOWING LAW: Article 1. Article 8 of Law 11-92 dated May 16, 1992, Dominican Tax Code, is amended to indicate that henceforth the following: "A rticle 8. AGENTS withholding or collection. They are directly responsible as withholding agents or perception persons or entities designated by this Code, by regulation or by the rules of the Tax Administration whose functions or because of their activity, trade or profession, involved in acts or operations in which they can make the retentio not percepció co n tribute rrespo nd lowing. "

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"P árrafo I. Agents Perceptions are all those subjects by profession, job, activity or function in a situation that allows them to receive taxpayer a sum which operates as an advance tax that ultimately you will pay , when receive any remuneration for the provision of a service or transfer of property. Have the ability to add, add, or add the payment they receive from taxpayers, the amount of tax that must subsequently deposited in the hands of the ributaria T Administration. "" P árrafo II. Withholding agents are all those subjects, by public or because of their activity, trade or profession, function involved in acts or transactions in which they can withhold the corresponding tax. Consequently the withholding agent fails to pay his creditor, the taxpayer, the amount representing the tax to enter it in the hands of A d m in istració n T ributaria. "" Paragraph III. Made the appointment of withholding or collection agent, the agent is obliged to pay only the amount received or retained and is accountable to the taxpayer by withholdings or perceptions wrongfully or excessively made. "Section 2. A paragraph was added to literal f of Article 44 of Law 11-92 of May 16, 1992, the Tax Code of the Dominican Republic, and added the literal n), so that henceforth it reads as follows: "P árrafo. For the same term storage media data used in electronic computer systems where pro cessation info rma n LIN casting co n m u b ject im po nib will be kept available. "" N) require, verify and practice inspections data storage media used in computer systems where information related to the im m u b ject wearable "is processed. ARTICLE 3. literals h) are modified k) of Article 50 of Law No. 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth be read as follows: " h) C or nservar in fo rm ao rdenada, po r a period of ten (10) years: accounting books, special books and records, records, receipts or pay stubs, or any document, physical or electronic, referred to operations and activities of co ntribu yente. "" k) All natural or legal persons performing transfer operations goods or services for consideration or gratuitously shall issue tax receipts for the transfers or transactions carried out. Before

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issue, they must be controlled by the Tax Administration according to the norm as she departs im. "ARTICLE 4. Paragraphs I and II are deleted from Article 54 of Law 11-92 of May 16, 1992 , Tax Code of the Dominican Republic. ARTICLE 5. Articles 55 and 56 of Law 11-92 of May 16, 1992, the Tax Code of the Dominican Republic, to be read are amended as follows: "Article 55. Notification of Tax Administration they will practice delivering personally, by telegram, certified, return receipt requested, by written record or by e-mail, fax or other electronic means of communication established by the Administration with the taxpayer correspondence. In the case of written notifications, they will be made by the Administration delegated to the person or business address. Paragraph I. The notifications made personally directly or by acting official or ministerial officers, will practice delivering personally notified or at home, the full text of the decision, act or document in question, noting the day, time and place in which the notification was performed, and the name of the person who received it. Paragraph II. In case the person to be served refuses to receive such notification, the acting official of the Tax Administration will make a record giving proof of that fact and leave the site raised a copy of the certificate, which will be worth notice. Paragraph III. Notifications made by the acting official, as well as those made by telegram, email, fax, or any other electronic means, produce the same legal that practiced by the Marshals or ministerial effects. Paragraph IV. The Tax Administration may establish by mutual agreement with the taxpayer, an email address on the Internet or electronic mailbox for each taxpayer and responsible, in order to refer them summonses, notices and other communications regarding their tax obligations, or communications of interest, where applicable. In cases of change of the internet address of the taxpayer, it shall notify the Administration of the deadline set out in Article 50 of the Tax Code. Failure to comply with this formal duty, shall be punished in accordance with Article 257 of this law. "" Article 56. Taxpayers or liable for the payment of taxes may apply to the Directorate General of Internal Revenue (DGII) recording identification codes and access (PIN) to comply with their tax obligations,

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such as conducting depositions, consultations, settlement and payment of taxes, as well as any other management or service available through electronic media such as the Internet, e-mail address authorized by the DGII for such purposes. Paragraph I. The DGII regulated by general rules, access, operation, form of declaration forms required for the settlement and payment of taxes, as well as all issues related to network security, the deadlines for the renewal of codes and other relevant aspects of the services offered, through electronic means such as the so-called Virtual Office DGII. Paragraph II. Statements and actions carried out electronically on the Virtual Office of the DGII by taxpayers or responsible with their identification code and access (PIN) previously provided by the DGII, will have the same force as that given to acts under private signature in the Civil Code, as established by Law No. 126-02 dated 14 August 2002, on Electronic Commerce and Digital Signatures, provided they had complied with the rules in effect established by the DGII. Paragraph III. The use of identification and access code (PIN) issued by the DGII or responsible taxpayers who request will be considered, when used in affidavits, tax payments, among other steps, such as a binding mechanism. Paragraph IV. The personal data of registered taxpayers or responsible to access and make returns and payments of taxes, through the Virtual Office, will be stored in a database owned by the DGII. The information contained in that database will be used for the correct identification of the taxpayer or responsible requesting the services offered electronically. Paragraph V. The DGII protect the confidentiality of information provided electronically by taxpayers or responsible, unless required to be disclosed pursuant to a legal obligation or based on an order of authority ad m in ISTRATIVE or jud icial co mp etente. "Article 6. Article 139 of the Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, as amended by Law 227-06, 2006, to read as following amendments:" Article 139. RESOURCE TAX DISPUTE. Every taxpayer, responsible, retention agent, collection agent, information agent, regardless person, natural or juridical, invested with a legitimate interest may file Tax Dispute Appeal before the Tax Dispute Court in the cases, terms and forms this Code provides, against -6- ________________________________________________________________________ resolutions tax Administration, the administrative acts violate the tax law, and any judgment or decision on the implementation of national and municipal taxes administered by any public entity, or which essentially has this character that meets the following requirements: a) in the case of acts against which all claims for reconsideration has been exhausted within the administration or management bodies of tax; b) arising from the management or administrative bodies of tax, in the exercise of such of its powers that are regulated by laws, regulations or decrees; c) constitute an excessive exercise, or deviated from their legitimate purpose, discretion conferred by the tax laws, regulations, general rules, resolutions and any general rule applicable, issued by the tax administration in general, will cause an icio Perju d irect. "ARTICLE 7. Paragraph II of Article 239 of Law No. 11-92 dated May 16, 1992 is amended Tax Code of the Dominican Republic, to read as follows "Paragraph II. When you can not determine the amount of the fraud, the SANCIO n pecu Niaria shall be five (5) to thirty (30) sm inim um s salary. "Article 8. Article 241 of the Act is amended number 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, to read as follows: "Article 241. Without prejudice to the penalties of confiscation of goods, products, vehicles and other effects used in the crime and the closure of the premises or establishment for a period not exceeding two months violators will be imposed fines of twenty (20) to two hundred (200) minimum wages or imprisonment from six days to two years or both penalties together when the judgment of the judge the seriousness of the case iera the requ. "Article 9. Article 243 of Law No. 11-92 dated May 16, 1992 is amended Tax Code of the Dominican Republic, so that in the hereinafter read as follows: Article 243. violators will apply the same sanctions thirty (30) to one hundred (100) in im or salary sm s ".

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 "Paragraph: ________________________________________________________________________ Article 10. Sole Paragraph of Article 250 of Law No. 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth it reads as follows is modified. In the case where MIGHT not determined the amount of taxes evad s gone, the mu lta be set between ten (10) and Cincu enta (50) sm salary in im or s. "ARTICLE 11.- is added a new paragraph the Sole Paragraph of Article 254 of Law No. 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth read as follows: "16. Refusal to comply in a timely manner with the obligation to issue tax receipts and keep copies thereof, as applicable, in accordance with the rules to that effect issued by the Tax Administration. "ARTICLE 12.- amending Article 257 of Law No. 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth read as follows: "Article 257. failure to comply with formal duties shall be punished by a fine of five (5 ) to thirty (30) minimum wages. Paragraph I. This penalty is independent of accessory penalties of suspension of concessions, privileges, prerogatives and exercise activities or closure of premises, as established aggravating circumstances in the case. Paragraph II. In cases of non-compliance with formal duties concerning the submission of information to the tax authorities, in addition to the fine provided in the main part of this article, a penalty of zero point may apply twenty-five percent (0.25%) of declared income in the fiscal period Antério r. "Article 13. Article 263 of Law No. 11-92 dated May 16, 1992 is amended tax Code of the Dominican Republic, so that henceforth it reads as follows way: "a rticle 263. Any public official, in addition to those to which the previous subsection refers either state, municipal, public companies or autonomous institutions, among others, the Registrars of Deeds, Mortgages Conservatives, director Migration, and generally the officials covered public faith, missing the obligations under this Code or special laws shall be punished with a fine of five (5) to thirty (30) minimum wages, without prejudice to the responsibility corresponds to them in accordance with the Administrative Penal law or Common. "________________________________________________________________________ -8- ARTICLE 14.- Paragraph I is amended Article 289 of the law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic so that henceforth it reads as follows: Paragraph I: shall be considered alienated for tax purposes, property or rights located or used in the Dominican Republic, provided they have been transferred shares of the commercial company that owns and the latter is incorporated outside the Dominican Republic. For the purposes of determining the capital gain and the tax on it, the Directorate General of Internal Revenue estimate the value of the transfer taking into account the sale value of the shares of the company which owns property or right and the value proportion of these, based on the overall value of the assets of the owning company whose shares have been subject to transfer. It shall mean alienation, any transfer inter vivos of ownership of property, whether gratuitously or for consideration. ARTICLE 15.- several literals and four paragraphs are added to Article 281 of Law 11-92, Tax Code of the Dominican Republic, so that henceforth read as follows: a) For the purposes of establishing transfer prices between companies related income from Dominican sources of branches or other forms of permanent establishments of foreign companies operating in the country, be determined on the basis of actual results achieved in its management in the country. b) Notwithstanding the foregoing in Article 280, when the accounting elements of these companies do not allow to establish the actual results, the Directorate General of Internal Revenue may determine the taxable income, applying the gross income of the establishment in the country, the proportion who keep together, the total income of the parent company and the gross income of the establishment in the country, all these values ​​determined in accordance with the rules of this law. You can also set the taxable income, using the assets of the establishment in the country, the ratio of the total income of the parent company and the total assets of this. c) When the prices the branch or permanent establishment copper to its parent or to another branch or related to the parent company do not comply with the values ​​for similar operations are charged between independent enterprises, the tax authorities may challenge them. The same procedure shall apply to paid or owed for goods or services provided by the parent company, its agencies or related companies, when those prices do not conform to normal market prices between unrelated parties prices.

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d) When the parent company, distributes corporate expenses to the branch or establishment in the country, and they do not correspond to the value or price of these costs for similar services that are charged between independent enterprises, the tax authorities may challenge them. These costs must be necessary to maintain and preserve the income of the permanent establishment in the country. e) The Directorate General of Internal Revenue may contest as an expense not necessary to produce and maintain income, excess determined by the amounts due or paid in respect of interest, commissions and any other payments, which come from credit and financial transactions held with the parent company or related thereto. The excess will be determined by checking the value in excess of interest, commission or other payment, which comes from similar transactions between independent companies and financial institutions in the country of the parent. Paragraph I: The Directorate General of Internal Revenue shall regulate on the implementation of the provisions of this article. Paragraph II: In the case of the hotel sector in all inclusive, whose business has particular links related to foreign, the Tax Administration may define Advanced Pricing Agreements (APA) on prices or rates that will be recognized from parameters of comparability by areas, cost analysis and other variables impact on the hotel business all inclusive. The sector will be represented for the signing of the APA by the National Association of Hotels and Restaurants (ASONAHORES). The agreements will be published by order and its validity shall be eighteen (18) months. Subsequent agreements may be valid for up to 36 months. In cases where an Agreement has expired Price Advance (APA) and there be no new agreement will remain in effect until the earlier agreement whatsoever approved the new APA (Advance Pricing Agreements). Remain in force the provisions of the Tax Code of the Dominican Republic on the determination of taxes. Paragraph III: These prices or rates shall apply for purposes of settlement and / or determination of the taxable income for the VAT and operating income for income tax. The tax authorities may challenge taxpayers reached by the APA, the declared values ​​when not correspond to the criteria included in it and apply the penalties established in the Tax Code. Paragraph IV: The same treatment could be given to sectors related to foreign processes such as: Insurance, Energy and Pharmaceuticals. Article 16. Article 290 of Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth it reads as follows amendments:

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"Art. 290. Natural persons residing in the country without organized accounting and whose gross income subject to tax come more than eighty percent (80%) from entrepreneurial or commercial activities or the exercise of professional or similar activities, and do not exceed the amount of up to seven (7) times the annual tax exemption, may choose to make an overall deduction for every concept, in addition to the aforementioned tax exemption of thirty percent (30%) of its gross income for purposes of determining its net income subject to tax. Paragraph I. This provision shall not apply to income from wage labor. Paragraph II. The Executive Branch regulations or the Tax Administration in the exercise of its regulatory powers, establish the procedure, payment frequency and forms it deems necessary for the implementation of the scheme Estim tio n S im p licado (RES). "ARTICLE 17. - Paragraph I of Article 309 of Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, so that henceforth it reads is amended as follows: "Paragraph I. the withholding provided in this Article will be made in the percentage of gross income indicated below: a) 10% on amounts paid or credited to account for rental or lease of any movable or immovable property, as payment on account; b) 10% of the fees, commissions and other remuneration and payments for the provision of services generally provided by individuals, not executed as employees, whose provision requires the direct intervention of human resources, as an advance payment; c) 15% on prizes or winnings from lotteries, fracatanes, lotuses, lotus quizz, electronic prizes from gambling and any type of prize offered through promotional or advertising campaigns, as final payment; d) 5% on payments made by the state and its agencies, including state enterprises and decentralized and autonomous agencies, to natural and legal persons, for the acquisition of goods and services in general, not in a dependent relationship with as payment on account; e) 10% for any other income not contemplated in these provisions; as payment on account. -11- ________________________________________________________________________ Dividends and interest received from financial institutions regulated by the monetary authorities, as well as National Bank for Housing Development and Production Associations Savings and Loan, the Pension Fund Administrators defined in the Law No.87-01 of May 9, 2001, which creates the Dominican Social Security and pension funds that they manage, intermediary companies in the market, fund managers investment and securitization companies No.19-00 defined in the Act of May 8, 2000, are excluded from the preceding provisions of this Article, without prejudice to the provisions of a rticle 308 of this C or say. "ARTICLE 18.- it adds a paragraph to Article 336 of Law 11-92 of May 16, 1992, the Tax Code of the Dominican Republic, which reads as follows: "P árrafo. In no case may be deducted from gross tax period, the VAT paid on the purchase of goods that will be incorporated or to be part of a good C atego would 1. "Article 19. Numeral 1 of Article 339 is amended law 11-92 of May 16, 1992, the Tax Code of the Dominican Republic on the tax base of the VAT, as amended by law No. 557-05 on Tax Reform, dated December 13, 2005, so that in henceforth read as follows: 1) Assets transferred. The net transfer price plus ancillary benefits granted by the seller, such as transportation, packaging, freight and interest financing, are invoiced separately or not, plus the amount of excise taxes that are applicable, less bonuses and discounts. ARTICLE 20.- the Literal d) and a paragraph to Article 340 of the Law 11-92 dated May 16, 1992 is added, the Tax Code of the Dominican Republic, so that henceforth have the following: "d) L D irecció n G eneral im pu this s Internal s po DRA establish an R ég im in Simplified for individuals without organized accounting, whose annual gross income does not exceed two (2) times the annual tax exemption for purposes of im since S or the R enta bre. "" P árrafo. The Executive Branch regulations or the Tax Administration in the exercise of its regulatory powers, establish the procedure, payment frequency and forms it deems necessary for the application of the system of E stim tio n S im p lificado (R E S). "

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 ________________________________________________________________________ ARTICLE 21.- paragraph of Article 341 of Law 11-92 of May 16, 1992, is hereby repealed, Tax Code of the Dominican Republic. ARTICLE 22: Article 343 of Law 11-92 of May 16, 1992, the Tax Code of the Dominican Republic concerning exemptions ITBIS, amended by Law No. 557-05 on Tax Reform is amended, dated December 13, 2005, to add to the table of existing exemptions in the Act 557-05 the following tariff headings: FERTILIZERS aND COMPONENTS Salvado 2302.10.00 or 2507.00.00 corn bran Kaolin and other kaolinic clays, calcined. 2518.10.00 Dolomite not calcined or sintered, called "raw" 2530.20.00 Kieserite, Epsom salt (natural magnesium sulphates) Hydrazine and hydroxylamine and their inorganic salts; basesinorgánicas other; other metal oxides, hydroxides and peroxides. 2825.90.90 Other Sulphates; alums; peroxosulphates (persulphates) Sodium Sulfate: 2833.19.00 Other 2833.21.00 Other sulphates Magnesium Aluminum 2833.22.00 2833.23.00 2833.24.00 Chromium Nickel Copper 2833.25.00 2833.26.00 2833.29.00 The zinc other nitrites; nitrates. Nitrates: Potassium 2834.21.00 2835.25.00 2834.29.00 Other hydrogen orthophosphate of calcium (dicalcium phosphate) 2835.26.00 Other calcium phosphates 2841.70.00 2835.29.00 Other phosphates Molybdate Metionita 2930.40.00 3101.00.00 Fertilizers even animal or vegetable origin mixed together or chemically treated, fertilizers produced by the mixing or chemical treatment of animal or vegetable origin 3102.10.00 Urea, even in aqueous solution 3102.21.00 3102.30.00 ammonium sulfate ammonium nitrate, even in aqueous solution

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3102.40.00 Mixtures of ammonium nitrate with calcium carbonate or other inorganic non-fertilising 3102.50.00 3102.80.00 Sodium nitrate mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution Superphosphates 3103.10.00 3103.20.00 Slag mineral or chemical fertilizers, phosphatic deforestation 3103.90.10 calcium hydrogenorthophosphate containing not less than 0.2% fluorine 3103.90.90 mineral or chemical fertilizers, potassic other 3104.10.00 carnallite, sylvite and other natural potassium salts, unwrought potassium chloride 3104.20.00 3104.30.00 3104.90.10 potassium sulfate and potassium sulfate magnesium 3104.90.90 other mineral or chemical fertilizers containing the three fertilising elements nitrogen, phosphorus and potassium; other fertilizers; products of this chapter in tablets or similar forms or in packages of less than or equal to 10 kg gross weight. 3105.10.00 Products of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg 3105.20.00 mineral or chemical fertilizers containing the three fertilising elements nitrogen, phosphorus and potassium. 3105.30.00 3105.40.00 diammonium hydrogenorthophosphate ammonium dihydrogen (monoammonium phosphate) and mixtures thereof with diammonium hydrogenorthophosphate (Diammonium phosphate) Other mineral or chemical fertilizers containing the two fertilising elements nitrogen and phosphorus: 3105.51.00 Containing nitrates and phosphates 3105.59.00 3105.60.00 other mineral or chemical fertilizers containing the two fertilising elements phosphorus and potassium other: 3105.90.10 sodium potassium nitrate (saltpeter) 3105.90.20 other mineral or chemical fertilizers containing the two fertilising elements nitrogen and potassium 3105.90.90 other agents organic surface even put up for retail sale: 3402.11.00 Anionic

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 ________________________________________________________________________ Article 23. Paragraph II of Article 343 of the Tax Code of the Dominican Republic is amended to be read as follows: "Paragraph II. They are exempt from this tax on imports and acquisitions in the local market of raw materials, packaging materials, supplies, machinery, equipment and spare parts directly related to the manufacture or production of medicines for human and animal use, fertilizers, agrochemicals and animal feed, when acquired by pharmaceutical companies themselves, fertilizer plants, agricultural chemicals and animal feed; inputs for the manufacture of fertilizers; and inputs for the production of animal feed, according to the dictates of the Regulations Governing the Application of Title II and III of the Tax Code of the Dominican Republic. In the event that the importation is made for purposes other than those referred to in this paragraph, the Directorate General of Customs shall proceed to collect customs duties and criminalization of the importer in accordance with the provisions of the Customs Act in force "ARTICLE 24.: "a rticle 344. EXEMPT SERVICES: Article 344 of Law 11-92, Tax Code of the Dominican Republic, so that henceforth it reads as follows changes. The provision of the services listed below are exempt from tax on the Transfer of Industrialized Goods and Services: 1) Education services, including cultural services: theater, ballet, opera, dance, folk ensembles, symphony orchestra or camera. 2) Health Service. 3) Financial services, including insurance. 4) Services of pension and retirement plans. 5) Services of land transport of people and cargo. 6) electricity, water and garbage collection. 7) services rental housing. 8) S ervice s id cu ado perso nal. "ARTICLE 25.- the table and the rates set out in Article 15 of Law 557-05 of 13 December 2005 amending the amounts of the table is modified Capital part of Article 375 of the Tax Code, as amended by the Laws of 27 No.147-00

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December 2000, No.3-04 of January 9, 2004, and No.288-04 of September 28, 2004, with respect to the products shown below: HS Code Description Rate 8415.10.00 Air conditioning window or wall, forming a single body or a sistem type of elem ent s separate s ( "sp lit-system") 20 8415.20.00 Air conditioning kind used in motor vehicles for the convenience of its occupants 20 8415.81.00 Air conditioning and cooling equipment of the term cycle valve (reversible heat pumps) 20 8415.82.00 other machinery with cooling equipment 20 8415.83.00 other machinery without cooling equipment investment 20 8415.90 .00 Parts of machinery for air conditioning 20 8479.60.00 evaporative air coolers 20 8516.50.00 8516.60.20 microwave ovens 20 Kitchen (cooking stoves) 0 8516.71.00 apparatus for preparation of coffee or 8516.72.00 tea Toasters 20 20 other electrothermic appliances 8516.79.00 8519.10.00 20 Turntables functioning by token or coin 20 8520.32.00 other apparatus for recording and reproducing digital sound 20 8520.33.00 other recording devices and reproducing sound cassette 20 8520.90.00 other apparatus for sound recording and reproducing apparatus 20 8521.10.00 recording and reproducing sound (video) magnetic tape 20 8521.90.00 other apparatus for recording and playback image and sound 8525.40.00 20 video cameras, including still image; Digital Cameras 20 8527.13.10 Other apparatus combined with sound recording or reproducing by optical reading system 20 8527.21.10 Radio-broadcast receivers combined with sound recording or reproducing by optical reading system 20 8527.31.10 receivers other devices broadcasting combined with sound recording or reproducing by optical reading system 20 television receivers 8528.12.00 color video monitor 10 8528.21.00 8529.10.10 colors 10 exterior antennas for television or radio receivers 10 8529.10.20 satellite dishes for reception direct from satellites. 10 8529.10.90 transmission antennas for cellular and transmission of messages through pager devices 10 8529.10.91 transmission antennas for cellular and transmission of messages through pager devices 10

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8529.90.10 furniture or TV boxes, video monitors and video projectors 10 8529.90.90 Other furniture or TV boxes, video monitors and video projectors 10 ARTICLE 26.- are amended and paragraphs I, II, III, V, VII and VIII are replaced , Article 375 of Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic, as amended by Law No. 557-05 on Tax Reform dated December 13, 2005, so that from now on have the following: Paragraph I. in the case of alcohol products, alcoholic beverages and beer, the amounts of selective specific consumption tax to be paid per liter of absolute alcohol shall be established according to the following table: Beer 22.03 Malta (except extract malt) 342.20 22.04 Wine of fresh grapes, including fortified wines, grape must other than that of heading 20.09 342.20 22.05 Vermouth other wine of fresh grapes flavored with plants or aromatic substances 342.20 22.06 other fermented beverages (eg, cider, perry, mead, drink mixes) fermented and non-alcoholic beverages not included elsewhere. 342.20 22.07 ethyl alcohol of an alcoholic strength exceeding 80% vol: ethyl alcohol and other denatured spirits of any strength. 279.08 22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol., Other spirituous beverages, compound alcoholic preparations of a kind used for the manufacture of beverages. 279.08 2208.20.00 grape brandy (cognac, Brandys, Staple) 279.08 279.08 2208.40.00 2208.30.00 Whisky Ron and taffia 279.08

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Specific Tariff Code Description Amount RD $ Gin and Geneva 2208.50.00 279.08 2208.60.00 279.08 2208.70.00 Vodka Liqueurs Other 279.08 279.08 2208.90.00 Paragraph II. In addition to the amounts set out in the table in paragraph I above and the provisions of paragraph III of this article, alcohol products, alcoholic drinks and beer will pay an excise tax of fifteen percent (15%) ad-valorem the retail price of those products. The taxable amount of this tax is the price of retail as defined by the regulations of the Tax Code of the Dominican Republic. Paragraph III. The amounts of the excise tax established in Paragraph I of this article, shall be adjusted each fiscal year by the rate of inflation for each year, according to figures published by the Central Bank of the Dominican Republic. Paragraph V. In the case of cigarettes containing snuff and others, the amount of selective specific consumption tax to be paid by cigarette box, will be established according to the following table. Specific Tariff Code Description Amount (RD $) Sigarette 20 cigarettes Cigarettes containing units 2402.20.00 2402.90.00 snuff 16.82 16.82 Other units Sigarette 10 cigarettes Cigarettes containing snuff 2402.20.00 2402.90.00 8.41 Other 8.41 Paragraph VII: In addition the amounts set out in the table in paragraph V, snuff products will pay an excise tax of one hundred percent (100%) ad valorem on the retail price of those products. The taxable amount of this tax is the price of retail, as defined by the regulations of the Tax Code of the Dominican Republic. Paragraph VIII. The amounts of the excise tax established in Paragraph V of this Article, shall be adjusted each fiscal year by the rate of

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inflation for each year according to figures published by the Central Bank of the Dominican Republic. ARTICLE 27.- paragraph of Article 382 of the Tax Code, as amended by Law 557-05, so that henceforth that Article 382, ​​restored by Law 288- 04, says as follows is deleted: "A rticle 382. a tax of 0.0015 (1.5 per thousand) of the value of each check of any kind, paid by financial intermediaries as well as payments made through wire transfers is established. Transfers as payments to third party account at the same bank will be levied a tax of 0.0015 (1.5 per thousand). This tax cash withdrawal both ATMs and bank offices, consumption credit cards, payments to Social Security, transactions and payments made by the pension funds are excluded, payments made in favor the Dominican State for taxes and transfers that the state should make these funds and transactions by the Central Bank. This tax will be presented and paid in the DGII, in co nd ay fo rm Safety conditions it set "Article 28. Article 383 of the Tax Code is reset, to read as follows:". ARTICLE 383. SERVICE INSURANCE IN GENERAL. a tax of sixteen percent (16%) to insurance services in general is established. The base of this tax will be paid by all kind or form of private insurance premium, including: fire or other natural disaster insurance, auto insurance, life insurance, health insurance and accident insurance, marine insurance, liability insurance and generally any other variety of life insurance or property of any kind to be offered in the present or the future. Paragraph I. compulsory insurance covered by the regime established by Law 87-01, which creates the S ystem D om in Icano of S ecurity S o cial excepted. "ARTICLE 29.- Section 2 is amended and paragraphs, of Law 147-00 December 27, 2000, to say as follows: Article 2. the selective consumption tax applicable to vehicles, motor cars and other motor vehicles designed for the transport of persons, (except as s shu rte co school), inclu gone s what s the type fam ily ( "break" or "statio nw ago n") and s race, will be ap licado so ber valo r C IF, m ost the customs tariff applied according to the following scale: -19- ________________________________________________________________________ CIF value (US $) rate Marginal excess 0 to $ 10,000 0% from US $ 10.001 to US $ 15,000 3% US $ 15.001 to US $ 30,000 10% US $ 30.001 to US $ 50.000 20% 50.001 US $ Forward 30% "P árrafo I. This tax also applies following subheadings:. 8707.10.00, 8711.30.00, 8711.40.00 and 8711.50.00" "P árrafo II. The taxable amount of this tax is the CIF value expressed in local currency at the market exchange rate of the imported more than the amount charged by the application of the tariff schedule. To determine the value of all types of vehicles subject to this tax, the Directorate General of A duanas to co m m ará or reference interval d r no rm to the m arket. "" P árrafo III. At the beginning of each year, scales CIF values ​​in the table above will be adjusted by Standard General by the Directorate General of Customs according to the evolution of the price indices of the automotive industry in the m arket mu ial nd. "" P árrafo IV. Exempted hearses, ambulances and heavy ipo equ s s to co n nstrucció. "" P árrafo V. For the purposes of protecting the environment and biodiversity, as well as saving foreign exchange for the importation of fuel, parts and spares, it prohibited the importation of cars and other vehicles falling under tariff headings 87.02, 87.03, 8704.21 and 8704.31 more than five years s of use. "" P árrafo V I. imports of used appliances is prohibited, except for the removal of Dominicans and foreigners under the laws nes d ispo sitio force in the country. "" P árrafo V II . the import of heavy vehicles more than five (5) tons with up to ten (10) years are also prohibited from manufacturing, under heading 87.04 and subheading 8701.20.00 in (Patan), except those referred to in Paragraph IV cle present it. "Paragraph VIII. Any exemption applicable to motor vehicles should not exceed thirty thousand dollars of the United States (US $ 30,000.00) FOB value. Vehicles whose values ​​exceed this amount must pay taxes on the excess of this external base.

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 ________________________________________________________________________ Paragraph IX. The limit mentioned in the preceding paragraph shall not apply in cases of exemptions granted under international conventions and special laws establishing value scales over which these exemptions apply. ARTICLE 30.- the capital of the Article 23 of Law 557-05 is amended to read as follows: "Article 23. In addition to the tax on fossil fuels and petroleum provisions of Law No. 112-00 , of 29 November 2000, a selective tax sixteen percent (16%) ad valorem on domestic consumption of fossil fuels such com is established and petroleum. "ARTICLE 31.- an additional tax of three pesos is established (RD $ 3.00) per gallon consumption of fossil fuels in relation to the premium diesel and regular diesel for general use (heading 2710.00.50) and five pesos (RD $ 5.00) to regular gasoline for general use (heading 2710.00.19 ). This tax will be charged in conjunction with the provisions of Article 25 of Law 557-05, of 13 December 2005 amending Article 1 of the Law No.112-00 dated December 8, 2000, on hydrocarbons for It indicates a tax on consumption of fossil fuels. Paragraph. The tax on fossil fuel consumption applicable to premium gasoline identified with the HS Code 2710.00.19 provisions of Article 25 of Law 557-05 of December 13, 2005, is set so that the tax per gallon of gasoline premium mentioned in that article is reduced by RD $ 5.00 from the entry into force of this law. ARTICLE 32.- Article 9 of Law 241 of 1967 on annual tax of issuing plates and the 56-89 Act of 1989 is amended, and Article 2 of Law 80-99 of 1999, repealing for that henceforth read as follows: "Article 9. an annual tax on freedom of movement of vehicles of all kinds, payable in the months of August to October each year according to the following criteria is established: a) vehicles owned companies paid as freedom of movement, one percent (1%) of the book value thereof. Paragraph I. The Directorate General of Internal Revenue General Standard established by the presentation and payment of this tax for companies and treatment books registered vehicles with zero (0) or whose value is less than the value accepted as authoritative for tax purposes. b) owned by individuals from 1 to 5 years of manufacturing vehicles as freedom of movement will pay one percent (1%) of the value of the first record of the vehicle according to the following table of variation:

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i. For the first and second year will pay 1% of the value of the vehicle used for registration, which in no case be less than RD $ 5,000.00. ii. For the third and fourth year will pay 0.75% of the value of the vehicle used for registration, which in any case will be less than RD $ 3,000.00 Paragraph II. This payment also applies to new vehicles entering the country, regardless of the year of manufacture. c) Vehicles of individuals 5 to 10 years of manufacturing will pay RD $ 3,000.00 as road tax or vehicle plate renewal, adjusted annually for inflation. d) Vehicles of individuals over 10 years of manufacturing will pay RD $ 1,500.00 as road tax renewal of vehicle or lacquers aju tate p po r anually body INFLATION n ". Paragraph I: For prior to the effective date of Law 557-05, 2005 imported vehicles, the Directorate General of Internal Revenue publish values ​​applicable by make, model and year of manufacture of the vehicles, accepted as reliable values ​​for tax purposes. Paragraph II: The amounts set out in this article shall be adjusted each fiscal year by the rate of inflation for each year according to figures published by the Central Bank of the Dominican Republic. Paragraph III: Breaches relating to the payment of the right of movement of vehicles of all kinds will be subject to the penalties established by the Tax Code of the Dominican Republic. ARTICLE 33.- The only tax applicable to sports gambling under paragraphs (a) and (b) of Article 1 of the Law 140-02 on Single Tax betting parlors, 2002, is increased by twenty percent (20%). Such Single Tax will be adjusted each year by the corresponding inflation rate according to figures published by the Central Bank of the Dominican Republic and will be paid in the Ministry of Sports, Physical Education and Recreation (SEDEFIR), which deposited in an account special open for such purposes by the National Treasury, sixty percent (60%) of the value of the tax collected and forty percent (40%) remaining will be administered by the Ministry of Sports, Physical Education and Recreation (SEDEFIR ). "Paragraph: Failure of this tax obligation will be sanctioned according to the provisions in Title I of Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic.

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"A rticle 13: an additional tax of thirty percent (30%) of all amounts is established ________________________________________________________________________ ARTICLE 34.- Article 13 of Law 29-06 of 2006, which read as follows is added to pay certain basis of the provisions of this law, payable in the form and conditions established by the General Directorate of Internal s Im s position. "ARTICLE 35.- companies special free zones classified in accordance with Article 6 of the law 8-90 dated January 15, 1990, establish an annual export program abroad and who do not demonstrate to the National Council of Free zones, real and credible evidence to meet the percentage of its production for export previously scheduled to be paid, partially or totally, customs taxes and other related taxes that affect the production and consumption of goods processing, as well as on the payment of income tax under the regulatory provisions and other rules laid down by the general directorates of Internal Revenue and Customs. In addition, it will apply the sanctions established in 3489 and 11-92 Laws, which instituted the Tax Code of the Dominican Republic, and Customs Regime, respectively. ARTICLE 36. A single tax of thirty one thousand pesos (RD $ 31,000.00) annually to Banking Lottery is established. Such Single Tax will be adjusted each year by the corresponding inflation rate, according to figures published by the Central Bank of the Dominican Republic and will be paid in the National Lottery, which deposited in a special account opened for such purpose by the National Treasury, sixty percent (60%) of the tax collected and forty percent (40%) remaining, will be administered by the National Lottery itself. Paragraph: Failure of this tax obligation will be sanctioned according to the provisions in Title I of Law 11-92 dated May 16, 1992, the Tax Code of the Dominican Republic. ARTICLE 37.- any contrary provision of this law is repealed, except the Law No.57-96 dated 6 December 1996. GIVEN in the Hall of Sessions of the Senate, National Congress, in Santo Domingo , National District, capital of the Dominican Republic, at nineteen (19) days of December in the year two thousand and six (2006); 163 years of Independence and 144 of the Restoration. Reinaldo Pared Perez, President

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________________________________________________________________________ Amarilis Santana Cedano, Diego Aquino Acosta Rojas, Secretary Secretary GIVEN in the Hall of Sessions of the Chamber of Deputies, National Congress, in Santo Domingo de Guzman, National District, capital of the Dominican Republic, at twenty (27) day of December in the year two thousand and six (2006); 163rd year of Independence and 144th of the Restoration.