Export of Service, formerly Act 20

An eligible business that carries out specific service activities allowed by the Code of Incentives outside of Puerto Rico will qualify for numerous tax exemptions and benefits. Among these, you may find a preferential tax rate on fixed net income, exemption on federal income tax, on dividends or profit distributions to shareholders, on property and municipal licenses, and 100% exemption on gross capital gains to name a few. The code also addresses exemptions and benefits for businesses operating in Vieques and Culebra.

Our White Paper Export of Services and Goods summarizes what service activities are considered eligible, the different tax benefits that are allowed as well as the licensing and job creation requirements.