Act 20 is designed to provide tax benefits to business including but not limited to the following sectors:
- Advertising and Public Relations;
- Economic, Environmental, Technological, Scientific Services
- Investment Banking/Financial Services;
- Legal, Tax and Accounting Services;
- Management, Marketing, Human Resources, Information and Audit Consulting Services;
- Software Development and Research/Development,
In order to qualify for the Act 20 tax grant, a business must have minimum of three employees, each of which must be a resident of Puerto Rico. Generally, the new Puerto Rico resident is one of such employees. Act 20's benefits include a reduced income tax rate and partial municipal license tax exemption over a 20 year period. Benefits are through a grant of tax benefits issued by Puerto Rico's Secretary of the Department of Economic Development and Commerce.
There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.
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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.
