Services / Compliance
Tax Decree Compliance Requirements
Obtaining your Puerto Rico tax decree is only the beginning of the process. To retain your unprecedented Puerto Rico tax advantages, you must remain in compliance with a number of rules and reporting requirements. Violating any of the compliance terms puts your grant at risk.
It can be confusing to deal with the various Puerto Rico government agencies involved; sometimes forms and government documents are not available in English, and sometimes government representatives, though bilingual, have not mastered all of the nuances of the English language, which can result in miscommunications.
Because this is such an important area, we are committed to ensuring that you understand all that is required for compliance, and introduce you to expert service providers who can help you.
Tax Decree Compliance Services
Compliance requirments we can manage for you:
There are a number of residency requirements that must be fulfilled for grant holders to take fullest advantage of Puerto Rico tax breaks. Residency requirements are rather complex for US Citizen relocating from the mainland, with multiple ways to meet the “Presence Test”. The most common method is to be in Puerto Rico for at least 183 days each year, though there are other options.
Starting with grantees applying after January 1, 2020, Individual Investors must purchase a residential property located in Puerto Rico. (This applies to Individual Investors only.)
Business formation and registration:
- Entity formation
- Merchant’s Registration for Sales and Use taxes
- Registration with the Municipal Treasurer
Companies filing for many of Puerto Rico’s tax incentives have minimum employee requirements, though for many, there is no minimum required. See pages about specific tax incentives for more information.
For export goods and services, thorough records must be kept regarding where corporate income is earned. In some cases, some portion of the corporate income may not be eligible for the lower tax rate, if it is not earned according to the Act 60 rules.
We can handle employee withholding and payment processing for you, freeing you up to grow your business.
- Income Tax Return for Exempt Business Under the Puerto Rico Incentives Program (financial statements must be certified by a Puerto Rico CPA if business revenue exceeds $3,000,000)
- Any appropriate US tax returns (if applicable)
- Estimated Tax Payments
- Sales and Use Tax Monthly Return
- Annual Fee for LLC with State Department
- Municipal license tax
- Exempt Annual Report
- Volume of Business Declaration (financial statements must be certified by a Puerto Rico CPA if business revenue exceeds $3,000,000)
- Personal Property Tax Returns (financial statements must be certified by a Puerto Rico CPA if business revenue exceeds $3,000,000)
- Real Property Tax
- Usage permit
Employee filings and payments:
- Monthly Federal Social Security and Medicare payments
- Quarterly FUTA (Federal Unemployment) payments
- Quarterly Fed 941 Form
- Annual Fed 940 Form
- Monthly PR Withholding payments/filing
- Quarterly SUTA – PR Unemployment/filing
- Quarterly SINOT – PR Disability payment/filing
- Bi-annual Worker’s Comp Insurance payment/filing
- Christmas bonus
We Can Help
Our company helps people like you take advantage of Puerto Rico’s excellent tax incentives! We can help you determine which tax incentives are right for you, help you plan your residency and relocation strategy, and simplify the entire process for you.
Contact us for a free initial consultation.
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!
Puerto Rico Labor Laws
Puerto Rico’s labor laws have some critical differences that are important to know if you have employees here. The upcoming webinar will feature a PR labor attorney who can advise about these differences.
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....
Charity Donation Requirements
Most Puerto Rico investors who apply for Act 60 or Act 22 must donate to a Puerto Rico charity each year. Note: there is no charity requirement for business owners if you chose not to pursue the Investor incentive. Rules for Act 60 and Act 22 Charitable Donations...