PR Incentives and Tax Law

We offer comprehensive legal counseling and services for Puerto Rico’s Act 60 Incentives, guiding you or your business through the entire application process. Whether you’re launching a new venture or expanding an established business, we ensure you apply for all eligible incentives under the Act.

Main Incentives Under Act 60 for Export Services

To qualify for Act 60 Incentives, an entity engaged in export commerce must derive at least 80% of its gross income from such activities.

  • 4% Income tax rate of on net income derived from the exempt operation for exempt businesses with business volumes of over $3 million.
  • If the business volume is $3 million or less, the income tax rate on net income from the exempt operation is 2% for five years, and 4% thereafter.
  • Distributions of dividends or profits generated by the exempt operation are 100% exempt from Puerto Rico income tax.
  • 75% exemption from personal and real property taxes for exempt businesses with a business volume of over $3 million. For businesses with a business volume of $3 or less, the property tax exemption is 100% for five years, and 75% thereafter.
  • 50% municipal license tax exemption for exempt businesses with a business volume of over $3 million.
  • 100% municipal license tax exemption for the first five years for exempt businesses with a business volume of $3 million or less, and 50% thereafter.

Take advantage of Puerto Rico’s unique legal framework to grow your business with confidence

Other key benefits of Act 60 Incentives for Young Entrepreneurs, Young Physicians, and Dental Surgeons include:

  • A 100% income tax exemption for the first $40,000 earned by the young entrepreneur between the ages of sixteen (16) and twenty-six (26) years old, from wages and other compensation for personal services rendered.
  • A 100% income tax exemption on the first $500,000 of net income generated by the young entrepreneur’s new business during the first three (3) years of operations.
  • A 100% exemption on the young entrepreneur’s new business’s personal property taxes during the first three (3) years of operations.
  • A 100% exemption on municipal taxes during the first three (3) years of operations of the young entrepreneur’s new business.
  • Net income over $500,000 and any dividend distributions from the new business to its owners will be subject to the regular tax rates applicable under the Code.

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Luis Silva is dedicated to empowering clients with personalized legal solutions to support their business success. Contact us today!

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