PR Tax Incentive
Puerto Rico has created an aggressive tax incentive program to connect with the global economy in order to 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% |
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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% |
|---|
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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% |
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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% |
Download Our Puerto Rico Tax Incentives & International Taxation White Papers
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.
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.
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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