Among the key objectives of the code of incentives is to encourage the promotion and development of service facilities of physicians in Puerto Rico. All individual physicians admitted to practice general medicine or any specialty, podiatry, surgery, dentistry and exercises a full-time profession, including residency under an accredited program, may qualify for this incentive. All qualified physicians who are residents of Puerto Rico will have until September 30, 2019 to request a decree.
Tax benefits include a fixed preferential income tax rate of 4% for the eligible income which is the one generated by offering professional medical services in Puerto Rico during the entire period of the decree. They may enjoy the benefits for a period of 15 years provided that the requirements are met and may request an extension of the decree for an additional 15 years.
It requires that at least 100 hours per month of the medical services be provided in a public or private hospital, in a federal or state agency, in a private office or an accredited medical school. Qualified physicians will be exempt from the donation requirement of $10,000 to non-profit entities.
Our White Paper on Professional Physicians, Chapter 2 of Subtitle B of the new code (formerly Act 14) also addresses community service requirements and the availability of a Student Loan Repayment Program.