Entrepreneurs are key players on the economy of any country and for such reasons the new Code is addressing this sector. For purposes of the Code, a young entrepreneur is a resident of Puerto Rico whose age fluctuates between 16 and 35 and who is interested in creating and operating a new company in the long term for an indefinite time. The exemption Decree will have a 3 years a term.
Among the tax benefits that are available for young entrepreneurs are: 0% exemption on income tax on the first $500,000 net income, no federal income tax on income sources in Puerto Rico, 100% tax exception on property tax, and 100% exemption on Municipal License taxes.
Refer to our White Paper on Young Entrepreneur, Chapter 10 of Subtitle B of the new Code (formerly Act 135) for a summarized briefing of the contents of this incentive.
