Tax Exemption and Economic Incentives

The Incentives Code of Puerto Rico, Act No. 60 of 2019 enacted on July 1st, 2019 (the “Code”), unified under one single law many of our previous economic incentive acts including the “Economic Incentives Act for the Development of Puerto Rico, Act No. 73 of 2008), Green Energy Act (Act No 83 of 2010), Act to Promote the Export of Services, (Act No. 20 of 2012), Act to Promote the Relocation of Investors to PR (Act 22-2012), Incentives Act for the Retention of Medical Professionals (Act 14 of 2017), among others. Businesses or individuals that meet the requisites established in the Code, may apply for a tax incentives decree before the Office of Incentives of Puerto Rico  (formerly the “Industrial Tax Exemption Office”). If said decree is approved, the grantee will enjoy many powerful benefits such as:

· A flat 4% income tax rate on its eligible income

· 50% of exemption on municipal taxes including the tax on the volume of business (“patente”) and construction excise taxes

· 75% of exemption on personal and real property taxes

· Access to certain tax credits through an incentives agreement

· Initial term of the decree is 15 years but may be extended for an additional term of 15 years 

At Impetus we provide businesses and individuals  advice in connection with their qualification pursuant to the Code to obtain a new tax incentives decree or to renegotiate any decree granted under the previous incentives laws. We work closely with all our clients and the Department of Economic Development and Commerce in the application and negotiation of the corresponding tax incentives decree until it is finally granted and accepted by the exempt business.   

We offer very competitive fixed fees arrangements for these services. Send us a message stating the nature of the activity you are interested in qualifying and we will immediately provide our fixed fees schedule as well as more information regarding the application process.