Puerto Rico Residency – Free Webinar

Puerto Rico Residency – Free Webinar

Establishing legal, “bona-fide” residency is the first step in a successful strategy to take advantage of Puerto Rico’s tax incentives. Maintaining it ongoing is also critical! Should you be audited and found to not be in compliance with the Puerto Rico residency requirements, you could be subject to significant back taxes and penalties.

For a presentation used in our recent free webinar, click here to download the PDF.

Audit Risk – Recent Developments

Even if you have already moved to Puerto Rico, you may be at risk of not be fully compliant with the Puerto Rico residency requirements. The IRS is staffing up to focus more on audits of Puerto Rico residents. It is more important than ever to ensure your strategy is sound and that you’re sticking to it.

It is fairly easy to comply with the rules for Puerto Rico residency. Invest a little time in educating yourself, and then check now and then to ensure you are maintaining this all-important part of your tax reduction strategy.

Questions – How to Become a Bona Fide Resident of Puerto Rico

We recently co-hosted a free webinar with an experienced CPA firm, to explain in more detail how to stay compliant with the residency rules so that your PR tax breaks can continue.  If you missed it, you can click here to download the PDF and we do intend to schedule a replay in the future.

The webinar discussed topics such as:

    • What is the minimum you need to do to first establish Puerto Rico residency?

    • Are there exceptions to the 183-day rule?

    • Can I keep a house outside of Puerto Rico and still be a legal PR resident?

    • What happens if the IRS audits you and finds you not to be a bona fide resident of Puerto Rico?

    • Is there a way to “game the system”? Why is this risky?

    • What are the benefits of moving to PR?

    • Does moving to PR automatically mean I will pay lower taxes?

Transfer Pricing Webinar

Transfer Pricing Webinar

PR Advantage is pleased to offer a free webinar series on transfer pricing!

What is transfer pricing?

Some entrepreneurs who relocate to Puerto Rico have existing businesses that continue after their move, which gives them the opportunity to use a PR Export Services company to provide management and other services from PR. Once they have relocated to PR, formed a new business here, and applied for the Act 60 Export Services tax incentive, their new PR company becomes a service provider to the pre-existing business.

Such business owners may have controlling interest in both companies, which means the relationship of the two businesses is not “arm’s length”, from a tax perspective. If this describes your strategy, you may need to consider transfer pricing. It doesn’t affect everyone who moves to Puerto Rico, but for some business owners, it can be an important consideration. This page provides a bit more detail.

Free Webinar Schedule

Because many of our clients have had questions about transfer pricing, PR Advantage has partnered with an experienced firm to offer a free, educational webinar series about transfer pricing. Come and get your questions answered by an expert who has helped many other Act 60 applicants. We are offering the following timeslots:

Session dateRegistration link
Tuesday, February 14, 20234-4:30pm PR time (12-12:30pm Pacific time)
Wednesday, February 15, 20231-1:30am PR time (12-12:30pm Eastern time)

FAQ

Here are some common questions about this issue, as a preview for what we will discuss on the webinar. We encourage you to send additional questions in advance of the session, to ensure the best chance that we can accommodate them.

Q: What is transfer pricing?A: Fees paid by a company you own or control to another company you own or control.
Q: Why does it matter?A: This type of vendor relationship is not “arm’s length”, because you control both sides of the transaction.
Q: When would this affect you?A: In an audit, transactions that are not “arm’s length” could result in fees, penalties, and back taxes owed.
Q: What can you do about this?A: Obtain a Transfer Pricing Study from a qualified 3rd party vendor to set the prices one of your companies charges the other company.

We look forward seeing you on the webinar! Don’t forget to send us your questions in advance.

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Free Webinars

Click below for more information on:

Why Puerto Rico, and how do the incentives work?

Puerto Rico Labor Laws

Transfer Pricing 

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