PUERTO RICO

The goal of Act 20 of 2012, also known as “The Act to Promote Export of Services,” is to establish Puerto Rico as the international service center of the world.  Eligible businesses benefit from a combination of a nominal fixed Puerto Rico income tax rate and partial exemption from municipal and property taxes. Shareholders or partners also get 100% tax exemption on dividends or profit distributed. By attracting foreign capital, and encouraging the people of Puerto Rico to stay or return, Puerto Rico will enjoy economic development and prosperity.

Act 22, or “The Act to Promote the Relocation of Investors to Puerto Rico,” was enacted to attract high-net-worth individuals to the island and encourage investment in the local economy. Like Act 20, Act 22 provides tax benefits to individuals who establish residency in Puerto Rico.

Because Tax Credits International is an Act 20 company, and its President, Bruce Deichl, an Act 22 applicant, TCI’s experience and knowledge is first-hand. Our goal is to guide you through the entire process, from the registration of your company here in Puerto Rico, through the application process, to post-decree compliance.   We partner with you every step of the way!

How Tax Credits International can help:

  • Preliminarily analyze the Applicant’s Act 20/Act 22 eligibility
  • Prepare the Act 20/Act 22 application
  • Meet with the government officials to discuss the Applicant’s eligibility (if necessary)
  • Submit the final Act 20/Act 22 application
  • Monitor the approval process with government officials on behalf of the Applicant to ensure progress.
  • Prepare and file the Applicant’s entity formation papers
  • Obtain a Tax Identification Number (IDN) on behalf of the Applicant
  • Register the Applicant
  • Register with the Puerto Rico Department of Treasury upon approval

The Tourism Development Act of Puerto Rico, Act 74 of 2010, as amended, (“Act 74”), and its predecessor laws provide tax benefits to investors that invest in certain tourism activities in Puerto Rico (i.e. hotel administration, theme parks, golf courses and other tourism activities). Among the benefits, Act 74 provides for a tradeable tax credit in the amount of 50% of the tourism investment amount, up to 10% of the total cost of the project. If the investor cannot use the credit, it may sell it to another taxpayer.

 

Copyright 2017 © Tax Credits International