(800) 755-5770 info@PRAdvantage.com

Tax Compliance

Tax Grants / Compliance

Tax Grant Compliance Requirements

Obtaining your Puerto Rico tax grant 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.

Unfortunately, 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 Grant Compliance Services

Compliance requirments we can manage for you:

Residency:

There are a number of residency requirements that must be fulfilled for grant holders to take advantage of Puerto Rico tax breaks, which also must be fulfilled by any employee of an Act 20Act 73, or Act 273 company.  Residency requirements are rather complex for expats and include being in Puerto Rico for at least 183 days in every calendar year.

Real estate:

Starting in December of 2015, Act 22 grantees must purchase a residential property located in Puerto Rico.  (This applies to Act 22 grantees only.)

Employees:

Each Act 20 business applying for the grant as of December of 2015 is required to hire 3 employees that are Puerto Rico residents within 6 months of the Act 20 filing date, along with an additional 2 PR- resident employees within the first 2 years of the Act 20 filing date.  (This applies to Act 20 grantees only.)  Act 273 businesses must hire 4 employees, unless this is waived.

Bookkeeping: 

Also for Act 20, thorough records must be kept regarding where corporate income is earned.  For some businesses, some portion of the corporate income may not be eligible for the Act 20 tax advantage, if it is not earned according to the Act 20 rules.

Business formation and registration:

  • Entity formation
  • EIN
  • Merchant’s Registration for Sales and Use taxes
  • Registration with the Municipal Treasurer
Other business reporting and filings:

  • 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

We are committed to ensuring that you understand all that is required for compliance, introduce you to expert service providers who can help, and answer any questions you might have.

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!

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...

What’s the Weather Like in Puerto Rico?

What’s the Weather Like in Puerto Rico?

Puerto Rico Weather Puerto Rico weather is steady and pleasant all year round! It is worth a visit to check it out, if you are considering relocating to Puerto Rico. It is also a wonderful and popular vacation spot. Contact us if you would like further consultation!  ...

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