Tax Incentives
Act No. 20 Export Services
Tax Benefits Requirements
• 4% maximum corporate tax rate. • Bona-fide entity established in Puerto Rico.
• Dividends and distributions from earnings and
profits are tax exempt. • Provides an eligible service.
• With no nexus to Puerto Rico.
• No job creation requirement.
• Certain investment income also qualifies for 4%
tax rate.
• 60% exemption on municipal gross receipts tax.
• No job creation requirement.
• 20-Year Tax Decree with the Government of Puerto
Rico (extendable for 10 years).
ACT 74
ACT 73
Economic
Incentives for the
Development of
Puerto Rico
4
Tourism
Development
Act
• 4% Corporate income tax rate for manufacturing,
technology, software development and other
qualified activities. • Tax credit equal to 10% of the total project costs,
or 50% of the cash investment made by investors
(whichever is less).
• 50% tax credit for eligible R&D activities; applies
to Federal Funded Programs. • 100% exemption on municipal construction excise
tax.
• 90% exemption for 15 years on real/personal
property taxes. • 100% exemption on taxes on imported goods and
sales tax.
• 60% exemption municipal license tax. • 100% exemption on municipal licenses.
• 100% exemption on dividends distribution. • • 12% tax withholding for royalties paid to foreign
entities. 90% exemption on income tax (or 100%
exemption if project located in Vieques/Culebra).
• 90% exemption on property tax.