Tax breaks may put Dominican Republic on silver screen

The country, known for its beauty, offers a haven for filmmakers.

SANTO DOMINGO, Dominican Republic - Manny Perez spent US$300,000 filming "La Soga," which hit U.S. theaters this month. But the low-budget movie may put the Dominican Republic on the filmmaking map.

That's because President Leonel Fernández recently signed a bill to spur development in the country's film industry by providing tax incentives for producing, filming and distributing movies, in addition to building theaters nationwide.

The incentives largely are aimed at Dominican Republican filmmakers, who receive a tax credit equal to 100% of the value they invest in their films, as long as 20% of the film's budget is spent in the Caribbean nation. Distributors of films get a similar incentive, and foreign filmmakers are entitled to a break from the country's value-added tax, a 16% tax levied on goods and services. They receive a 100% tax income credit for establishing a studio in the country.

"Our film act is the best in the region and all members of the country's film industry should be happy with this piece of legislation that certainly sets the course for progress and growth," said Minister of Culture José Rafael Lantigua.

But industry analysts said tax incentives are not enough.

"For me, the tax incentives are the gravy [because] by themselves, they are meaningless," said Jeffrey Taylor, owner of the Arizona-based Jeffrey Taylor Group, which advises filmmakers and produces entertainment projects. "You first have to have a solid foundation that will attract productions. That's more important than the [tax] credits."

Taylor said competition is stiff among markets. Many U.S. cities, including New Orleans and Detroit, offer attractive tax packages, as do other countries. But for the Dominican Republic to stand out, it has to promote itself as a film-friendly location, Taylor said.

"You need to have trained staff," he said. "You need people that know how to work on major productions. Then, you need to get people interested in filming there."

Dominican Republic offers a variety of settings for filmmakers

The country is home to several film festivals, including the Dominican Republic Global Film Festival, which has attracted entries from throughout the world. Festival promoters said in a statement the new law "is an important milestone for local filmmakers as well as investors and foreign producers."

Perez said his film, which follows the life of a butcher turned hit man seeking to avenge his father's murder, shows the Dominican Republic is a fantastic location to shoot a movie.

"The country has beautiful locations. It's a beautiful place to film," Perez, who also plays the main character, Luisito, in "La Soga" told Infosurhoy.com in a telephone interview. "It can be Cuba. It can be anywhere."

The Dominican Republic, home to gritty cities, colonial architecture, pristine beaches and lush mountain areas, has been a stand-in for Cuba several times on the big screen, including in Francis Ford Coppola's 1974 classic "The Godfather II." It was also used for scenes in Steven Spielberg's 1993 thriller "Jurassic Park."

Perez filmed "La Soga" in the city of Baitoa, where he grew up. He relied on the generosity of neighbors and family members, who let him shoot scenes in their homes free of charge. He spent US$150,000 of his US$300,000 budget on post-production costs. Tax incentives, he said, would have been "a big help" in stretching his budget.

The film opened in 11 theaters in United States on Aug. 13 and has brought in US$50,000. It's a very modest take by Hollywood standards, but a strong showing for a low-budget film.

"Whatever it ends up earning," Perez said, "it's already a major success because of the publicity it's received."

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