(800) 755-5770 info@PRAdvantage.com

Puerto Rico Tax Consulting

Services / Act 60 Tax Incentives

Puerto Rico Act 60 Tax Incentives

Though well worth the time and effort required, obtaining any Puerto Rican tax decree means going through a complex process.

Take it from us – obtaining a Puerto Rico tax break can be prolonged and frustrating! It can also be quite expensive. Our founders’ business relocation utilized 3 different legal firms, 4 different CPAs, and far more of our time than they preferred. This process diverted energy and attention away from running their business – which no busy entrepreneur can afford.

Our team makes it easy for you. We can provide as much management of the process as you elect to outsource – from a little consultation to managing the whole thing, start to finish.

Our tax incentive consulting services include but are not limited to: 

  • Opportunity Zones
  • Tourism Projects
  • Film / Creative Industries
  • Aerial / Maritime Transportation
  • Cruise Industry

Export Goods and Services

formerly called Act 20

The Export Goods and Services Incentive was originally created to bring international business to Puerto Rico. Corporate income is eligible for goods sold or services  performed from Puerto Rico for clients located outside of Puerto Rico.

Benefits include:

  • 4% Corporate Tax Rate (2% in some circumstances)
  • 0% tax on owner profit distributions / dividends
  • 75% exemption from property taxes
  • 100% exemption on municipal taxes during the first 5 years
  • 15-year grant, with a possible 15-year extension

Individual Investors

formerly called Act 22

The Individual Investors Incentive provides tax exemptions to eligible individual investors with their primary tax home and residence in Puerto Rico. Act 22 grantees who are also US citizens would also pay no IRS tax on passive income accrued after becoming residents of Puerto Rico.  Includes crypto-currency!

Benefits include:

  • 100% tax exemption from Puerto Rico income taxes on dividends
  • 100% tax exemption from Puerto Rico tax on interest income
  • 100% tax exemption from Puerto Rico on long-term capital gains
  • 100% tax exemption from Puerto Rico on short-term capital gains

R&D and Manufacturing

Formerly called Act 73

The Economic Incentives for the Development of Puerto Rico Act offers tax advantages to research and development activities, as well as manufacturing.

Benefits include:

  • 4% fixed corporate income tax rate
  • 0% or 1% income tax on endeavors categorized as “pioneer industries”
  • 0% tax on owner profit distributions / dividends
  • Tax credits for jobs created
  • Tax credits of up to 25% of products manufactured in Puerto Rico
  • Tax credits of 50% of qualified investment

Tourism

hotels, casinos, theme parks, and more

The Visitor’s Economy Incentive encourages the development of many types of construction and activities geared toward the tourism industry.

Benefits include:

  • 4% fixed income tax rate
  • 0% tax on owner profit distributions / dividends
  • 75% exemption from municipal taxes
  • 100% exemption on sales tax for operational items / equipment
  • Tax credit of 30-40% based on expenses toward acquiring and building the project, from the date the application is filed

Tax Incentive Application Process 

We provide and facilitate consulting to optimize your strategy, including business structure and which tax incentives are right for your situation. There are often multiple options, and we can explore them all with you.

Also, for some new Puerto Rico businesses that provide services for businesses also owned by the same people outside of Puerto Rico, it may be necessary to ensure that the Puerto Rico business is being paid a fair price for its services. Business owners in this situation may need to consider the matter of transfer pricing.

For all of the Puerto Rico tax incentives, it is necessary to ensure you understand and monitor compliance with residency requirements.

  1.  Consultation regarding what Puerto Rico tax incentives are appropriate for you.
  2. Retention of professional advisors to advise on any business structuring needed.
  3. Assistance in finding a Puerto Rico business location.
  4. Formation of new Puerto Rico corporate entities as required.
  5. Writing and filing of tax incentive applications.
  6. Follow through as the applications are processed, coordinating with government agencies as needed until the incentives are in hand.
  7. Advise and assist with any questions that Puerto Rico government agencies may have in processing your application.
  8. Obtain the business licenses and certificates needed to ensure your compliance with government requirements.
  9. Identify appropriate professional service providers to maintain grant compliance ongoing.
  10. Ensure that you understand the compliance requirements to protect the integrity of your grant.

 

    Contact Us For a Free Initial Consultation!

    We can ensure that, by the time you have obtained your grant, you fully understand what is required to keep it by following all compliance rules. Our team will connect you with the right professionals to assist you with Puerto Rico’s tax grant and compliance requirements.

    Lastest From Our Blog

    Puerto Rico is a land of economic opportunity, endless beaches, a rich culture, and friendly people. The weather is amazing year-round, and Puerto Rico offers many beautiful and safe places to live. Let us help you discover the many benefits and joys that life in Puerto Rico has to offer!

    Bringing Your Pet to Puerto Rico

    In general it is totally fine to bring your pet with you to Puerto Rico, either on vacation or when moving here permanently. There is no quarantine period required when bringing a pet to Puerto Rico. There are lots of grooming, veterinary, and other services for pets....

    Frequently Asked Questions About Puerto Rico

    Frequently Asked Questions About Puerto Rico

    Below are some of the most common questions we hear from people considering Puerto Rico as a relocation destination. Contact us for more details, and for a free consultation about your unique situation.   Doesn't Puerto Rico Have a High Crime Rate? Puerto Rico’s issue...

    Free Report:Top 10 Things We Learned Relocating Our Business

    Free Report:
    Top 10 Things We Learned Relocating Our Business

    Please check your mailbox to download your free report