PR Tax Incentives

Planning on Doing Business in Puerto Rico?

Doing business in Puerto Rico can be both gratifying and profitable. The process may seem overwhelming and confusing with regards to filing for permits, licenses, tax compliances, accounting and all documents required to start an organization on the Island. Hiring experienced tax consultant professionals will help you with the transition.

Based on our 10-year experience with new incomers, we have prepared a white paper that helps you execute business in Puerto Rico.

Tax Accountant Professionals

We offer tax and accounting services to our clients to help them manage tax returns so as to avoid severe issues. All of our tax accountant professionals are experts in bookkeeping and leave no stone unturned in order to maximize your financial returns.

White Paper

Want to reduce your tax rate to 4% on service and trade hub businesses? Puerto Rico has implemented an aggressive 4% tax and 0% Federal Tax incentive program to connect with the global economy, establish an ever-growing array of service industries, and develop into an international service center hub. If you buy outside the USA and sell to a USA-based company, this is a real alternative to tax reduction.

New Business Start Up

Did you know that an unauthorized operation in Puerto Rico could be fined $10,000?

New entities operating in Puerto Rico must comply with a series of registrations and authorizations. These regulations include submitting the proper Merchant Registration with a fine of $10,000 for non-compliance.

White Paper

Understanding the Puerto Rico tax system and its interrelation with the United States is crucial for individuals and entities doing business on the island. As a US territory, Puerto Rico has a unique set of Business and Payroll laws and regulations.

Tax Transaction Advisory Services

Every business transaction has the potential to become a taxable event. The unique laws of Puerto Rico require knowledgeable experts who can help business owners navigate the regulatory landscape. Business owners need to know how their holdings in Puerto Rico relate to their US and global assets. Our goal is to provide advice that will minimize unnecessary taxes while promoting your interests.

White Paper

The laws around taxable transactions are shaped by Puerto Rico’s status as a US territory rather than a state. Our white paper will help you understand the advantages and challenges of doing business in the region.

Transfer Pricing

Transfer pricing rules typically require related entities to compensate each other appropriately so as to be commensurate with the value of the property transferred or services provided whenever an inter-company transaction takes place. This “arms-length” standard prevents companies from distorting the price to minimize or avoid a hefty tax bill.

Our experienced accountants can help you choose the best method for determining a fair transfer price. They will talk you through options such as market rate, negotiated, and cost-based transfer pricing. Our assistance will streamline the transfer process without incurring penalties.

White Paper

Are you selling to a controlled company at a reduced 4% taxable rate?  Transfer prices directly affect the allocation of group-wide taxable income across national tax jurisdictions. Hence, a company’s transfer pricing policies can directly affect its after-tax income to the extent that tax rates differ across national jurisdictions. USA IRS could impose severe penalties on a transaction that is not arm’s length. Allow one of our tax accountants help you with this process.

Not-For-Profit Taxes

Both profit and non-profit businesses must comply with Puerto Rico’s registration and taxation rules. Failure to properly register a non-profit can lead to significant financial penalties. Partnering with our experts will avoid mistakes that will cost you time and money as you begin. 

White Paper

Starting a not-for-profit organization in Puerto Rico may seem overwhelming at first. The US Territory status of the island creates both opportunities and challenges. The information in our white paper will serve as an introduction to the process.

International Tax Advisory and Compliance Services

A key to business success is keeping your tax strategy agile and aligned with your corporate strategy. Our tax accountant professionals keep an eye on your effective tax rate so you can focus on managing your business.

Your TCG international tax accountant will have the resources, experience, and local competencies to help your company address your cross-border needs.

TCG tax team keeps track of frequent changes in tax regulations in multiple jurisdictions, expanding compliance rules, and the increasing range of tax decisions by regulators.

White Paper

Puerto Rico Corporations and Puerto Rico limited liability companies that elect to be
treated as corporations for tax purposes are considered foreign corporations under the amended United States Internal Revenue Tax Code of 1986. This status means that investors and owners outside of Puerto Rico may be subject to a global intangible low-taxed income (GILTI) tax. Understanding the tax law may have implications on how to best structure your organization.