PR Tax Incentive

Puerto Rico has created an aggressive tax incentive program to connect with the global economy in order establish an ever-growing array of service industries, and to establish as an international service and trading hub center.

Services & Hub Trading – Act 20

Puerto Rico Tax Haven

Federal Income Tax 0%
Tax on short and long term capital gains 0%
Tax on interest income 0%
Tax on dividend 0%
Tax on profit distributions 0%
Tax Government decree, renewable for an additional ten year 20 Years
SUMMER ALL YEAR LONG YES

Puerto Rico Taxes

Fixed Income Tax Rate 4%

Puerto Rico Tax Shelter

Real property taxes 100%
Excise taxes 100%
Municipal license taxes 60%
Personal property 100%
Sales and use tax 100%
Business Owners & Investors – Act 22

Puerto Rico Tax Haven

Federal Income Tax 0%
Tax on short and long term capital gains 0%
Tax on interest income 0%
Tax on dividend 0%
Tax on profit distributions 0%
Tax Government decree, renewable for an additional ten year Till 2036
SUMMER ALL YEAR LONG YES

Puerto Rico Taxes

Fixed Income Tax Rate 4%
Film & Games Production – Act 27

Puerto Rico Tax Haven

Federal Income Tax 0%
Tax on short and long term capital gains 0%
Tax on interest income 0%
Tax on dividend 0%
Tax on profit distributions 0%
Tax Government decree, renewable for an additional ten year 20 Years
SUMMER ALL YEAR LONG YES

Puerto Rico Taxes

Fixed Income Tax Rate 4%

Puerto Rico Tax Shelter

Real property taxes 90%
Excise taxes 100%
Municipal license taxes 100%
Personal property 90%
Sales and use tax 100%

Puerto Rico Tax Incentives

Production tax credits on payments to resident companies & individuals 40%
Production Tax Credits on payments to nonresident individuals 20%
Infrastructure Tax Credits on development & expansion cost 25%
Manufacturing & Production – Act 73

Puerto Rico Tax Haven

Federal Income Tax 0%
Tax on short and long term capital gains 0%
Tax on interest income 0%
Tax on dividend 0%
Tax on profit distributions 0%
Tax Government decree, renewable for an additional ten year 20 Years
SUMMER ALL YEAR LONG YES

Puerto Rico Taxes

Fixed Income Tax Rate 4%
Intangible Property 12%
Pioneer or novel product manufacture/production 1%

Puerto Rico Tax Shelter

Real property taxes 90%
Excise taxes 100%
Municipal license taxes 60%
Personal property 90%
Sales and use tax 100%

Puerto Rico Tax Incentives

Tax credit on Research and Development (R&D) Activities 50%
Tax credit on purchases of products manufactured or recycled in PR 50%
Special deductions on investments from structure, machinery & equipment Investment Credit
Job created during 1st year of operations $5,000 Per Job Created
First year accelerated depreciation 100%

White Papers

Doing Business In Puerto Rico

Based on our 35-year experience with new incomers we have prepared a white paper in the insight of doing business in Puerto Rico.

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International Tax Planning Services

Tax Structure Analysis

International Tax analysis is a complex and risky undertaking, these days businesses also have to contend with international economic transactions, with complex and ever-growing regulatory oversight. We can help you structure your business in a tax-efficient manner, construct effective cross-border strategies, and manage your global structural tax rate.

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.

Arm’s Length

The arm’s-length principle requires that compensation for any inter-company transaction conform to the level that would have applied had the transaction taken place between unrelated parties, all other factors remaining the same.

Intellectual Property Valuation

Valuation goal is to identify the fairest and most realistic method to calculate the value of Intellectual Property, based on market conditions, and adapting itself to today’s global and economic realities while minimizing regulatory risk and uncertainty.

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Doing business in Puerto Rico can be both gratifying and profitable, the process may seem overwhelming and confusing, contact us.

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