Does Decree 29-89 allow subcontracting, transferring machinery between qualified firms, or sending goods to free zones VAT-free?

Yes. Subcontracting of productive services is allowed with notice to the Ministry of the Economy (MINECO) (art. 16),… and the transfer of inputs and machinery between qualified companies is permitted if the recipient enjoys equal or greater benefits (art. 17). Article 36 bis creates a bridge to free zones: Decree 29-89 companies and free-zone users may send each other goods for processing or completion without VAT (a free-zone user shipping into the customs territory under temporary admission guarantees the taxes); co-exporters and local inputs are also VAT-free (art. 36 ter). Perishable plant material obtains documentary authorization within a maximum of 6 hours of arrival (art. 3 bis), and foreign technical staff receive automatic 3-month work permits through the Ministry of Labor (MINTRAB) (art. 17 bis).