Our White Paper on PYMES Enterprises Chapter 10 of Subtitle B (formerly Act 62) addresses who is eligible for this incentive and the tax benefits available for any natural person or entity that is operating or is contemplating doing business in Puerto Rico, regardless of their place of organization. It offers a real estate and personal property exemption, for the first five years of the decree. For the remaining years of the decree, the exemption will be 75%. It also offers a 100% exemption on municipal license taxes for the first five years of the decree. For the remaining years, the tax exemption will be 50%.
The PYME may lease an eligible property of the DDEC to establish the operation and pay a $1 rent for the first three years of the lease and may apply for up to 30% tax credit on purchases of products manufactured in Puerto Rico. The tax credit will not be transferable and any amount not used in a tax year may be carried forward to subsequent years.