Flat rate
4.0%
Duration
15 years
Prior non-residency
—
required before applying
Standard top income tax
33.0%
Puerto Rico, without the regime
Overview
- Regime
- Act 60 - Export Services (Chapter 3)
- Country
- Puerto Rico
- Type
- Flat rate
- Status
- Active
- Effective from
- Jan 1, 2012
- Expires on
- —
Details
- Summary
- Formerly Act 20. Provides a 4% fixed income tax rate for qualifying export service businesses relocated to Puerto Rico.
- Eligibility
- Service businesses that export services to clients outside Puerto Rico. Must establish bona fide presence in PR.
- Benefits
- 4% corporate income tax on export service income. 100% exemption on dividends. 50-100% exemption on municipal taxes.
- Requirements
- Must have physical office in PR. Must employ local workers. Business volume requirements determine exact rate (2% for <= USD 3M for first 5 years).
- Limitations
- Services must be rendered to clients outside PR. IRS scrutiny on income sourcing. Cannot be a business already operating in PR.
- Income types covered
- Export service income: consulting, technology, financial services, creative services, and other qualifying services performed in PR for external clients.
- Duration details
- 15-year decree term, renewable.
Other regimes in Puerto Rico
| Name | Type | Rate |
|---|---|---|
| Act 60 - Individual Investor (Chapter 2) | Exemption | 0.0% |
View source Puerto Rico Advantage / Hacienda