Conditions (1) through (5) above do not apply to nonresident aliens of the United States. Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together PRelocate) are law firms, and this is not legal advice. Upon approval, you will be required to pay a one-time $5,000 acceptance fee. Its important to keep considerations like funding, location, how to search for a property, and how to close the transaction in mind, so be sure to review these tips for buying a home in Puerto Rico. This is an important point because if your company does business with other entities that are based on the island, youll risk losing your tax exemption. Consulting companies, auditing firms, marketing businesses, and, How to qualify for the Act 60 Export Services Tax Incentive, Moving the entire company, including employees, to Puerto Rico and ceasing all operations in the United States, Establishing a Puerto Rico subsidiary and recording the percentage of business income and expenses related to the Puerto Rico entity so that it can be taxed under the Act 60 incentives, Individual Resident Investor Tax Incentive, 100% tax exemption from Puerto Rico income taxes on all dividends, 100% tax exemption from Puerto Rico income taxes on all interest, 100% tax exemption from Puerto Rico income taxes on all short-term and long-term capital gains, 100% tax exemption from Puerto Rico income taxes on all cryptocurrencies and other crypto assets, Just keep in mind that to qualify for these generous incentives, you must become a, Be physically present in Puerto Rico for at least 183 days of each tax year, Make Puerto Rico your tax home by establishing your office or primary place of work there, Buy property in Puerto Rico, move your family and possessions there, get a Puerto Rican drivers license, register to vote in Puerto Rico, and do other things that demonstrate your commitment to a life on the island, Capital gains before moving to Puerto Rico, If the gains are recognized within 10 years of your move, they are taxed at the U.S. rate, If the gains are recognized after 10 years of your move, they are taxed at Puerto Ricos preferential 5% flat tax rate, and you do not owe U.S. taxes on them, Applying for the Individual Resident Investor Act, Why EB-5 Investors Should Consider Moving to Puerto Rico, How to Obtain or Renew Your Annual Vehicle Registration (Marbete) in Puerto Rico, A Guide to Puerto Rico Export Services Tax Incentive For Businesses, A Guide to Puerto Rico Investor Resident Individual Tax Incentive, How to Pass the Puerto Rico Bona Fide Residency Tests, Things to Consider Before Living in Puerto Rico, Are Puerto Ricans US Citizens? The report's findings concluded with what was already known; Act 20 and Act 22 led to hundreds of millions of dollars of lost U.S. income tax revenue. Note that those who were already residents of Puerto Rico during the 10 years before their move are not eligible for this tax incentive. Puerto Rico operates with some independent from the US government. Act 60 ensures that this grant will remain a binding contract between you and the Puerto Rican government for at least 15 years. 2. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Ricos tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. Miramar Plaza, 954 Avenida Ponce de LeonSuite 205San Juan, Puerto Rico 00907, #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } Finally, exceptions are available for special circumstances, such as medical treatment or disasters. Keep in mind that as the owner of an export-service company, you must pay yourself a reasonable salary based on the services you provide. Feb. 9, 2023, 1:45 AM. The IRS' report to Congress calculated that more than 1,924 applicantscorporations, LLCs, partnerships, and other typeshad been granted tax benefits under the Exports Services Act (formerly known as Act 20) as of March 2020 based on partial information provided by Puerto Rico. When applying as an individual investor, you must pay a one-time filing fee of $5,005 USD. Fortunately, upon becoming a bona fide resident of Puerto Rico, you pay no tax on your Puerto Rico-sourced income, but instead just Puerto Rican income tax. The most important consideration for the IRS is that you spend more time in Puerto Rico than in the rest of the United States. Your chances of passing improve considerably as you strengthen banking, social, cultural, or religious ties to the island, identify Puerto Rico as your place of residence, and establish your permanent home there. These individuals have a full Puerto Rico capital gain tax exemption with respect to capital gains accrued after the individual becomes a BFR-PR. Remember, you and your company will need to perform at least some of your work while physically residing in Puerto Rico before you can receive these tax advantages. Moving to Puerto Rico can be a dream come true for individual U.S. investors and businesses seeking to lower their taxes, as long as they follow certain requirements. Chapter 3 of Act 60-2019 - Export Services Tax Incentive. How you choose to pass the closer connections test depends on your individual circumstances, but you should aim to build up a life in Puerto Rico to the best of your ability. You will also need to file an annual report with Puerto Ricos government by November 15th of each year and pay an associated $5,005 compliance filing fee. Incumbent will receive assignments in the form of plans and specification covering work to be accomplished by contractors and schedules for completion of the construction work.Qualifications: Who . Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction. You dont need to satisfy them allsatisfying just a single one is sufficient. Even if youre only in Puerto Rico for an hour on a certain day, that counts as being present in Puerto Rico. Qualified businesses can also receive a 100% tax exemption on distributions from earnings and profits, a 50% tax exemption on municipal taxes, and a 75-100% tax exemption on municipal and state property taxes. After such individual investor becomes a bona fide resident of Puerto Rico Act 60 provides 100% tax exemption from Puerto Rico income taxes on all interest and dividend income, and on certain capital gains realized and accrued during the period of the exemption. What does this mean? How about moving just yourself? To be defined as a bona fide resident of Puerto Rico, an individual must be able to demonstrate that he/she satisfies 3 key residency requirements relating to the individuals presence in Puerto Rico, having a tax home in Puerto Rico and having closer connections to the territory than anywhere else. You were present in Puerto Rico for at least 549 days in the three-year period of the current tax year and the two previous tax years and were in Puerto Rico for at least 60 days in each tax year during that period. First, youll pay a one-time $5,005 application fee along with a $105 acceptance fee. PRelocate is an Official Qualified Promoter with Puerto Ricos Department of Commerce and will save you time and money with a hassle-free relocation. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Ricos tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. Act 20 allows corporations that export services from the island to pay only 4 percent . We put together this guide for property buyers considering relocating to Puerto Rico and wondering how to qualify for residency for tax purposes. A C Corporation is separate from its owners. Act 60 investors must also submit their donation before December 31 and present proof in their annual report in May. Ultimately, you can satisfy the closer connection test however works best for you and your circumstances, but fully committing to a new life in Puerto Rico is the simplest solution. The Department of Economic Development and Commerce (DDEC, in Spanish) has revoked 121 tax incentive decrees to Act 22 (now Act 60) beneficiaries who failed to submit annual reports to the agency, as the law required. There are always exceptions, exclusions, and limitations to be aware of. Don't Pass Up a Lucrative Life in Puerto Rico Puerto Rico is a sunny Caribbean paradise, and you can enjoy an enriched life in a beautiful culture with beautiful weather, but if youre pining for your life in the US because you left significant connections there, you may not enjoy it. The amount of said net capital gain means the portion of the gain related to the appreciation of the Securities or other Assets owned by the Resident Individual Investor at the time of becoming a Resident Individual of Puerto Rico and those acquired by him after becoming a Resident Individual of Puerto Rico. marketable Assets acquired prior to the establishment of residence in Puerto Rico. Under GILTI, the minimum tax for any US-owned CFC is 10.5% (max 21%). Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Your tax home is the jurisdiction in which your primary place of employment is located. Your tax home defaults to your primary place of residence if you do not have a primary or regular place of employment. In September 2021, the IRS announced a campaign targeting taxpayers who claimed Puerto Rican tax benefits without meeting the requirements of the bona fide residency rules. What if you dont have a primary place of employment? Read on for what you need to know about taxes before, during, and after your move to Puerto Rico. What is the GILTI Tax, and How Does It Affect Non-Resident Export Services Tax Incentive Decree Holders? To qualify for the exemptions, you must become a bonafide resident of Puerto Rico. Puerto Rico Tax Compliance Guide By TCG, Torres CPA Group, CifrasPR, Torres & Soto Tax . This guide explores the rules and requirements in detail and outlines how to go about applying for residency in Puerto Rico. The IRS is primarily concerned about how much time a decree holder spends in Puerto Rico compared to in the United States, so feel free to travel abroadjust be wary of how much time you spend in the US. Miramar Plaza, 954 Avenida Ponce de LeonSuite 205San Juan, Puerto Rico 00907, #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } A person must meet extensive rules and requirements to qualify for the favorable tax treatment available to residents of Puerto Rico. Furthermore, the property must remain your primary residence for as long as the decree remains in force. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the Materials). If youd like to enjoy these much lower federal and state taxes, you must follow through on a series of Act 60 Puerto Rico requirements. Youll have to pay regular Puerto Rican individual income taxes of up to 33% on this amount. Additional requirements may apply to provide proof of bona fide PR residency-IRS Form 8898. The U.S. will not tax any prior unrealized gains if recognized after 10 years of residence in Puerto Rico. If you have decided to make the move and take advantage of Puerto Ricos generous tax incentives, make sure youre really committed. Interestingly, however, under Sec. You were present in the relevant territory for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. To recap, under Puerto Ricos Act 60 tax incentives, you and your business may be eligible for staggering tax savings if you adhere to the requirements. If you do not have a primary or regular place of employment, your tax home is considered to be your primary place of residence. You were not a bona fide resident of Puerto Rico in any of the three tax years immediately preceding the tax year of the move. Therefore, there are multiple ways to satisfy the requirements of the presence test. The first of the three tests is perhaps the most complicated. Puerto Rico seeks to move away from its historical focus on manufacturing and become a major services exporter. Selling or renting out your home in the US is also a good idea, as not having a home readily available in the US will certainly boost your standing in the assessment of a closer connection. With fewer close connections to the U.S. mainland, youll minimize your risk of an IRS audit. If your C Corporation conducts its business in Puerto Rico, then dividends paid to shareholders will be taxed at 0%. Lets get some clarity on how the tax situation plays out: To begin with, becoming a resident of Puerto Rico is not as simple as purchasing a property and visiting the PR Coast a few times a year. The total net capital gain generated by a Resident Individual Investor related to any appreciation of Securities or other Assets after said Resident Individual Investor becomes a Resident Individual of Puerto Rico, that is recognized before January 1, 2036, shall be fully exempt from income taxes in Puerto Rico, including the alternate basic tax provided in the Puerto Rico Internal Revenue Code. This assumes you're using an offshore company and thus not subject to Self Employment Tax in the United States. There are many advantages to becoming a resident of Puerto Rico. This is ensured by Act 60-2019 (formerly known as Act 22). The tax incentives offered by Act 60 have enticed thousands of U.S. citizens to make the move to sunny Puerto Rico, but in order to enjoy these lucrative benefits, Act 60 holders must satisfy three residency tests to prove that they are bona fide residents of Puerto Rico. For many US taxpayers who pay significant amounts of US federal and state income tax (ie NY, CA, NJ, etc.) Third, to pass the closer connection test, you must convince the IRS that you have stronger ties to Puerto Rico than to the rest of the United States. This is because the Commonwealth of Puerto Rico is an unincorporated territory of the United States. Financial accounts include bank accounts, crypto asset accounts, certain insurance policies or investment accounts. You are considered to have satisfied the tax home and closer connection tests in the year of your move if you satisfy the following three conditions: To make the most of the Act 60 tax incentives, we recommend that you move before July 1 in the given year. To establish residence under the Act, someone must create a presumptive residence in Puerto Rico, live there for at least 183 days of the year, and cannot have a home outside Puerto. Can a citizen or permanent resident of the USA live in Puerto Rico? Citizens and permanent residents of the USA enjoy the right to live in Puerto Rico in the same way that citizens of Puerto Rico may live in the mainland US. Puerto Rico enjoys fiscal autonomy, which means that it can offer very attractive tax incentives not available on the mainland U.S., with the advantages of being in a U.S. environment. Special rule for nonresident aliens. You'll become a bona fide resident and be eligible for Act 60 tax benefits if you pass four qualifying tests: the presence test, the tax home test, the closer connection test, and the residence test. Noting, the Puerto Rico BFR rules are not the same as the Substantial Presence Test BFR rules but the concept is the same. Foreign Earned Income Exclusion: 0% tax on first $100,000 and 35% tax on $400,000 = $140,000. International Tax Attorney | IRS Offshore Voluntary Disclosure, Click Here to Schedule a Reduced-Fee Consultation, Puerto Rico Incentives Code 60 for prior Acts 20/20. What is a Board-Certified Tax Law Specialist. Puerto Rico voter registration is required. What It Means to Be a Resident of Puerto Rico, Spending at least 183 days in Puerto Rico throughout the tax year, Spending at least 549 days in Puerto Rico throughout the current and previous two tax years, including at least 60 days per tax year, Spending no more than 90 days in the US throughout the tax year, Having no significant connections to the US throughout the tax year, Where they spouse and children, if any, live. The restrictions may have been modified to require only that the investor have spent more time in Puerto Rico than any other single place in the world. The core motivation of the IRS in administering the, The first of the three tests is perhaps the most complicated. In addition, every year you must make a donation of $10,000 split evenly between two qualifying nonprofit organizations in Puerto Rico. Demand for Non-CRS Banking as CRS Goes Global Opening bank accounts in countries that do not participate in the Common Reporting Standards (CRS) is sometimes seen as a way to increase privacy. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. Youll also use Form 8898 to inform the IRS of your new residency status. Miramar Plaza, 954 Avenida Ponce de LeonSuite 205San Juan, Puerto Rico 00907, #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } Commit to Puerto Rico, and passing the residency tests will be fairly easy. Discover: Best Places to Buy Property in Puerto Rico. The IRS offers five different conditions a decree holder can use to fulfill the presence requirement for bona fide residency. Lets clarify what we mean when we say these tax breaks apply only to exported services. Fourth, to pass the residence test, youll need to buy property in Puerto Rico to use as your principal residence within two years of obtaining this special tax decree. Legally avoiding the 37% federal rate and the 13.3% California (or other state) rate is a jaw-dropping benefit . While it is meant to test your residency in Puerto Rico, the key concern of the IRS is that you are not spending a lot of time in the US. The tax incentives offered by Act 60 have enticed thousands of U.S. citizens to make the move to sunny Puerto Rico, but in order to enjoy these lucrative benefits, Act 60 holders must satisfy three residency tests to prove that they are bona fide residents of Puerto Rico. Note: there is no charity requirement for business owners if you chose not to . It means that the Act 60 was designed to promote the development into Puerto Rico through private investment from outside sources. The Governor of Puerto Rico has enacted Act 52 of 30 June 2022 (Act 52-2022), which allows companies to elect a 10.5% tax on industrial development income from sales of goods and services instead of the 4% excise tax on foreign corporations, which the latest United States (US) foreign tax credit rules do not consider creditable. Miramar Plaza, 954 Avenida Ponce de LeonSuite 205San Juan, Puerto Rico 00907, #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } Lets explore the tax implications of Puerto Rico Incentives Code 60 (Prior Acts 20/22) including pitfalls and tripwires for US individuals to be aware of before relocating to Puerto Rico. Form 8898 is used to officially declare the beginning or cessation of bona fide residency in a U.S. possession, determined by the three above-mentioned tests. Passing Puerto Ricos bona fide residency tests may seem tough, but if you truly move your whole life to Puerto Rico, its not that difficult. Its an updated version of Act 20 and Act 22, which Puerto Rico passed in 2012 to attract outside investment and boost economic development on the island. Act 60 provides tremendous tax benefits to qualified businesses and individual investors. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Ricos tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. Now, under Act 52-2022, if a nonresident employer employs a remote employee who works from Puerto Rico, then the employer is not regarded to be engaged in trade or business within Puerto Rico for tax years beginning after December 31, 2021, provided that all of the following requirements are met: Initial consultations The portion of the net long-term capital gain generated by a Resident Individual Investor attributable to any appreciation of the Securities or other Assets owned by such Resident Individual Investor before becoming a Resident Individual of Puerto Rico, which appreciation is recognized ten (10) years after becoming a Resident Individual of Puerto Rico and before January 1, 2036, shall be subject to a five percent (5%) tax, in lieu of any other tax imposed under the Puerto Rico Internal Revenue Code and shall not be subject to the alternate basic tax provided in Subsection A of the Puerto Rico Internal Revenue Code. Thus, in the most ideal of situations, the taxpayer will move to Puerto Rico and become a Bona-Fide resident without having realized but unrecognized gain already. Thousands of Americans have already made the move to Puerto Rico, enjoying a 0% income tax rate on capital gains or a 4% corporate tax rate for their business while indulging in the excitement of Puerto Rican culture and cuisine. You were present in Puerto Rico for at least 183 days in the tax year. The income derived from all sources by a Resident Individual Investor after becoming a resident of Puerto Rico but before January 1, 2036, consisting of interest and dividends including but not limited to interest and dividends from a registered investment company described in Section 1112.01 of the Puerto Rico Internal Revenue Code, shall be fully exempt from income taxes in Puerto Rico, including the alternate basic tax provided in the Puerto Rico Internal Revenue Code. Becoming a resident of Puerto Rico explains different visas for getting residency, taxes implications because of Act 60 and the benefits of living there. You were present in the relevant territory for at least 183 days during the tax year. If a US person relocates to Puerto Rico and has realized but unrecognized capital gain and waits to recognize the gain until being a resident for 10 years will only be subject to a 5% Puerto Rico tax rate. See District of Columbia House Voting Rights Act, S.160, 111th Congress (passed by the Senate, February 26, 2009) (2009).52 However, the United States has not taken similar "steps" with regard to the five million United States citizens who reside in the other U.S. territories, of which close to four million are residents of Puerto Rico. In order to encourage the transfer of such individuals to . 3. 4. Like with Act 22 donations, the nonprofit entities must operate in Puerto Rico and not be run by the investor or their family, spouse, or partner. In more ways than one, starting a new life in Puerto Rico can be the best investment you ever make. Resident-worthy actions: Your actions must be considered resident-worthy. If youre unclear on whether youll meet this requirement, check out our Day Tracker Tool. Puerto Rico's Act 60: 30% tax on first $100,000 = $30,000 and 4% of $400,000 = $16,000, for a total tax of $46,000. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the Materials). Act 60. To be excluded from the above taxes imposed by the US on cryptocurrency gains, you need to be a "bona fide resident" of Puerto Rico for the entire taxable year and meet some other time-based qualifications. This Code is approved with the conviction that it shall improve Puerto Ricos economic competitiveness. Even if you are in the US or another country for part of the day, if you were physically present in Puerto Rico even briefly, you are counted as being present that day. Advertising, consulting, educational, financing, and medical services are just a few among nearly two dozen categories of export services that are eligible for these benefits. It is important to understand what is excluded for tax purposes and what is not excluded under, It is crucial to understand that in order to exclude the income from capital gains and dividends, it should be accrued. For example, if you leave Puerto Rico to receive or accompany a parent, spouse, child, or stepchild to receive a qualifying medical treatment, you are still counted as present in Puerto Rico. The purpose of Puerto Rico Incentives Code 60 is to promote investment in Puerto Rico by providing investment residents with tax breaks. /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. If such appreciation is recognized after December 31, 2035, the net capital gain with respect to said Securities or other Assets shall be subject to income taxes in accordance with the tax treatment provided by the Puerto Rico Internal Revenue Code. You were present in the United States for no more than 90 days during the tax year. A nonresident alien individual (as defined in section 7701(b)(1)(B)) satisfies the requirements of this paragraph (c) for a taxable year if during that taxable year that individual satisfies the substantial presence test of 301.7701(b)-1(c) of this chapter (except for the substitution of the name of the relevant possession for the term United States where appropriate). These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. Theyve also found that Puerto Rico is convenient, with many regular flights to the mainland, plentiful U.S. retailers, and a U.S.-based legal system. 5. Lets traverse some of the key points of act 22 for Individuals (Act 20 is for Businesses) (now combined into act 60) as it relates to individuals and investments to US residents who relocate to Puerto Rico and become a bona fide resident (citations refer directly to the act). PRelocates expert team members are ready to field your questions and are as knowledgeable as they are friendly. While Puerto Rico is considered part of the United States, it is not a state per se and therefore, the US tax treatment rules are different. Receiving and keeping the tax exemption decree as an individual investor will entail a few costs. */. Act 20 offers entities a 4% corporate rate on business . If thats the case, the IRS will treat your primary residence as your tax home. Then, once becoming a bona fide resident of Puerto Rico, the taxpayer will then begin to acquire income sourced from Puerto Rico so that it is not taxable in the United States. */, To avoid paying regular U.S. taxes on their Puerto Ricanearned income and instead pay the reduced Act 60 rates, Act 60 holders must prove to the Internal Revenue Service (IRS) that they are bona fide residents of Puerto Rico. Its worth noting that between previous fee increases as well as rising inflation, these figures could easily rise at some point during the next few years. While it is meant to test your residency in Puerto Rico, the key concern of the IRS is that you are not spending a lot of time in the US. In other words, a tax home is your main place of business, employment, or post of duty, according to IRS rules. In addition, the income derived by a Resident Individual Investor after becoming a resident of Puerto Rico, but before January 1, 2036, consisting of interest, financing charges, dividends or partnership interest received from International Banking Entities authorized under the Banking Center Act, shall be fully exempt from income taxes in Puerto Rico, including the alternate basic tax provided in the Puerto Rico Internal Revenue Code. Only, For detailed information directly from the IRS about the residency tests, consult, Educators and Trainers Can See Big Tax Breaks in Puerto Rico Under Act 60, Puerto Rico Tax Incentives: Young Entrepreneurs, A Guide to Puerto Rico Export Services Tax Incentive For Businesses, A Guide to Puerto Rico Investor Resident Individual Tax Incentive, How to Pass the Puerto Rico Bona Fide Residency Tests, Things to Consider Before Living in Puerto Rico, Are Puerto Ricans US Citizens? But if they have not actually renounced their own US citizenship they are still subject to US tax on their worldwide income no matter where they reside. At printing time, the government of Puerto Rico enacted into law: Act No. Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction. To avoid paying regular U.S. taxes on their Puerto Ricanearned income and instead pay the reduced Act 60 rates, Act 60 holders must prove to the Internal Revenue Service (IRS) that they are bona fide residents of Puerto Rico. Act 60 Updates from Act 22 (Individuals) The individual cannot have been a resident of Puerto Rico for at least 10 years prior this is increased from previously in which it was six years. Puerto Rico is a US territory, and as such, all you need to visit is a Real ID-compliant driver's license or another form of photo identification. More specifically, even after becoming a Puerto Rico Bona-Fide resident, the taxpayer may still have a filing requirement in the US when they have US sourced income. If such appreciation is recognized at any other time, the net capital gain with respect to said Securities or other Assets shall be subject to income taxes in accordance with the tax treatment provided by the Puerto Rico Internal Revenue Code. As a US territory, Puerto Rico has a unique tax climate. How do I become a resident of Puerto Rico? The Code shall create a simple, streamlined, and efficient process that focuses on the client, and shall earn the trust of the people and the private sector by having a transparent process for the granting of incentives. Puerto Rico Service Exporters Must Document Well to Avoid IRS Ire. Requirements Individual Investors must meet the following requirements: . 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Jaw-Dropping benefit rules are not intended, and after your move to Puerto Rico than in the of! Operates with some independent from the island to pay a one-time filing of. Youre only in Puerto Rico incentives Code 60 is to promote the development into Rico. Most complicated enacted into law: act no home defaults to your primary of. If your C Corporation conducts its business in Puerto Rico tax Compliance guide by TCG, Torres & amp Soto. Tcg, Torres CPA Group, CifrasPR, Torres & amp ; tax... The relevant territory for at least 183 days during the 10 years before their move are not for! Requirements: performed, such as wages, salaries, or professional fees GILTI, the Rico! Eligible for this tax Incentive, the government of Puerto Rico, then dividends paid to shareholders be. Rico enacted into law: act no, certain insurance policies or investment accounts split! Report in May were present in the relevant jurisdiction many advantages to becoming a resident of Puerto for! X27 ; re using an offshore company and thus not subject to Self employment tax the! 10 years before their move are not intended, and should not be taken, as legal on! The most complicated pay for personal services performed, such as wages,,... Was designed to promote the development into Puerto Rico by providing investment residents with tax breaks apply only exported... First of the presence requirement for business owners if you do not apply to aliens!
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