Environmental law
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The continuation of the climate change agreement

The World Bank and the International Monetary Fund Annual Spring Sessions were held in April in Washington DC during which different topics were developed including climate change. UN General Secretary, Ban Ki-Moon, was part in several events during the meetings along with World Bank President, Jim Yong King, and the Head of IMF, Christine Lagarde. (more…)

The importance of oceans in climate change

We cannot underestimate the importance of oceans in the world and, least of all, think that because of its abundant surface on Earth we will have enough so as to keep abusing them. Knowing full well that they supply 50% of oxygen, food and means of life of millions of people, oceans have become the most important spaces and habitats due to global thermal and atmospheric regulation, being, at the same time, significant tools to fight the effects of climate change. To sum up, oceans are a fundamental ally against the development of climate change and we must do everything possible to protect them. (more…)

More than 20 years for the signing of agreement on climate
clima

Are there really conditions and will to address climate change?

After spending more than two decades of climate summits, including the Earth Summit and the Kyoto Protocol, and twelve months of intense diplomatic efforts to reach a climate agreement, finally, since mid-December 2015, one of the most important achievements of the UN was that in Paris 195 countries agreed and signed a pact in favor of climate.

Faced with the constant threat of climate change for humanity itself and for the planet, the chief executives, international organizations, specialized organizations, investors and entrepreneurs and acknowledged pokesperson on this topic, among others, have gradually been showing great concerns over the issue of greenhouse gases. (more…)

Use of Financial Leasing in the Dominican Republic

Leasing operations are increasingly becoming a practical and sustainable option for the acquisition of assets. While, on immediate terms, only the ownership of a good is obtained, later on the option to buy or sell the asset becomes available.

While financial leasing is not expressly covered by Dominican legislation, due to the ever-increasing globalization this figure has experienced a fair share of growth, becoming a modality for businesses and companies to acquire and obtain real or personal property without having to go too deeply into their capital. That is why we must resort to general provisions within Dominican law, and the Dominican Civil Code in particular, since it establishes the required mechanisms to provide security for this sort of operations —such as the guarantees provided in a Pledge Agreement without divestment or notarial notes (awards of debt) by the Lessee.

Financial leasing is defined as «a contract by which a leasing company transfers to another —the lessee— the use of property purchased by the company as directed by the lessee, for a specific period of time, paid via installments; the lessee can exercise a purchase option at the end of the contract».

Why Should One Acquire Assets via Financial Leasing?

There are multiple reasons: some are tax-related, others pertain to the availability of capital. The use of technology and its constant evolution have determined the growth of this figure, since updating tech goods is an essential matter when it comes to competing in a market with such diverse players. With Leasing, an entity may acquire a range of modern equipment that may prove quickly outdated thanks to the same technological evolution that created it, at reduced costs. This acquisition is no longer deemed expensive and ineffective, and the entity can now enjoy the ease of using goods for a predetermined amount of time, without obligation to purchase.

Leasing is divided into phases:

First, the lessee requests the product or good from a leasing entity, which acquires it using its own resources. This operation can also be reversed —that is, the good can be acquired by the lessee to be sold to the lessor and then be provided on lease to the lessee, which is known as a “sale-and-leaseback” transaction.

Second, the lessor provides the lessee the requested goods, subject to payment of fees, insurance, guarantees and contractual terms of duration, as well as any other feature that may be deemed pertinent by the lessor.

Third, the final stage is defined by the interests of each party involved. The conclusion of the contract will depend on the decisions taken by the parties, which may include the renewal of the contract, the sale of goods or the delivery of said goods to their actual owner.

Agreement to Avoid Double Taxation between Spain and the Dominican Republic

Agreement signed with the Dominican Republic in the city of Madrid on november 16, 2011
For a long time, international agreements have configured the fiscal policies of many countries, having become one of the main sources of Tax Law. Double Tax Treaties or Agreements (known as DTAs) belong inside this spectrum of international tax regulations. These agreements, often signed bilaterally between two countries, were born as an answer to globalization and the economic interdependence experienced in the 20th century. DTAs are used to avoid the harmful effects of the double international taxation phenomenon, which takes place when the same income is paid for twice during the same fiscal period, by the same contributor. This has a negative impact on international trade, as it increases the price tag on foreign investment. (more…)

Free Zones in the Dominican Republic: Benefits and Obligations

Protected by Law 4315, issued on October 22, 1995, and by the 997-02 Decree, commercial free zones in the Dominican Republic were created to promote tourism-related trade, providing foreign travelers the chance to purchase duty and tax-free items. The Directorate General of Customs, a dependent of the Dominican Republic’s Treasury, is tasked ith supervising and controlling the special regime’s operation. (more…)