Read the most significant amendments made by the Puerto Rico Incentives Code to the Puerto Rico Internal Revenue Code.
The Qualified Opportunity Zones Priority Project Committee has published the list of Priority Projects within Opportunity Zones in Puerto Rico.
Why is fundamental to hire a CPA when investing in the opportunity zones?
Puerto Rico has greatly benefited from that splendid combination of being a US territory with its own fiscal autonomy. This has allowed the island to deploy a series of tax incentives strategies to provide for economic development. Evidence of this can be tracked down to the past century when, during the 1940’s, Puerto Rico began transitioning from an agricultural economy to a manufacturing haven for pharmaceuticals and other industrial operations
The Puerto Rico Treasury Department (“PRTD”) has recently issued several communications applicable to the filing and collection of the Sales and Use Tax (“SUT”).
For those taxpayers that requested an extension to file their income tax return, October 15 represents the final due date. Therefore, it is important to keep in mind important requirements regarding foreign information that may have to be included in your income tax return. There are significant penalties for US citizens and US residents who fail to file these forms
To finish our tax incentives series and keep you informed of the most important changes to the incentives in Puerto Rico, we turn our attention to the Opportunity Zone Program, which was originally adopted in Puerto Rico on May 14, 2019 by Act 21-2019.
To continue our tax incentives series and keep you informed of the most important changes to the incentives in Puerto Rico, we turn our attention to the following incentives: Bona Fide Farmers and Agricultural Businesses, previously included in Act No. 225 of December 1, 2005; Economic Incentives for the Film Industry of Puerto Rico, previously contained within Act No. 27 of March 4, 2011; Incentives for Young Entrepreneurs, previously included in Act 135 of August 7, 2014; Business Incubator Incentive Program, previously included in Act 95-2013; and Exemptions to Public Air Transport Services, previously contained within Act No. 135 of May 9, 1945.
To continue our series regarding Act 60-2019, known as the “PR Incentives Code” (“Act”) and keep you informed of the most important changes to the incentives in Puerto Rico, we turn our attention to: • Qualified Physicians, previously within Act No.14-2017; • New incentive for researcher and scientists; • New incentive grant for professional residents of difficult recruitment; • New internship program for young people, entrepreneurs and first experience employment incentives; • New Incentive program for elderly people; and • New Incentive program known as My Future Account.
As discussed on our first issue, Act No. 60 of 2019 (known as the Incentives Code, referred to as the “Act”) codifies all the incentives granted throughout decades with the objective of adopting a comprehensive tool of economic development. The Act revokes the Puerto Rico Tourism Development Act of 2010, (i.e. Act 74-2010) as amended, while simultaneously adopting a similar set of incentives, with some changes we discuss below.
The new Puerto Rico Incentives Code, referred to as the “Act”, codifies all the incentives granted throughout decades with the objective of adopting a comprehensive tool of economic development. The Act revokes Acts 20 and 22 of January 17, 2012, as amended, while simultaneously adopting a similar set of incentives, with some changes we discuss below.
On July 1, 2019, the Governor of Puerto Rico converted House Bill 1635 into Act 60-2019, known as the Incentives Code of Puerto Rico (the “Act”). The Act codifies incentives granted for diverse purposes throughout decades with the aim to foster economic development more effectively. The Act adopts a legal and administrative framework for the application, evaluation, and grant or denial of incentives by the Government of Puerto Rico. Some incentives remain unchanged, while others were eliminated or altered to increase the return on public investment.
The Puerto Rico Treasury Department has negotiated with the US Treasury Department to extend the deadline to file the request of the benefit.
The Puerto Rico Department of Treasury has released Circular Letter 19-08 establishing the filing deadlines for certain corporation income tax returns.
The Puerto Rico Department of Treasury has released Circular Letter 19-06 stating new guidance for individuals, corporations and LLCs on the filing of automatic extensions for income tax returns.
Act No. 257 of December 10, 2018 introduced a significant change to the Puerto Rico Sales and Use Tax (“SUT”) by eliminating the SUT on: (i) designated professional services, and (ii) services rendered to other merchants by persons whose annual volume of business does not exceed $200,000. These provisions became effective on March 1, 2019.
