Puerto Rico offers one of the best returns on investment on Earth. The success and profitability of your business can be attributed to how you can minimize your costs. Puerto Rico has made the decision to try and bolster their economy by creating an aggressive tax incentive program that allows businesses who form on the island a distinct tax saving advantage.
This tax incentive was created to make sure that Puerto Rico can attract businesses and investments from all over the world. The Puerto Rico government believes this will help jump start their lagging economy.
Although Puerto Rico is a self-governing United States territory it does not have to follow all of their tax laws. Puerto Rico is exempt from the Internal Revenue Code because it does not have the same voting rights as the 50 states. Therefore, individuals and corporations are not subjected to US federal taxes, even though products made there can carry the “Made in America” tag.
The Economic Incentives Act for the Development of Puerto Rico went into effect in 2008. Two additional laws were created named Act 20 and Act 22 in 2012. The new laws were designed to stimulate business and investment in Puerto Rico. Tax Law Solutions can show you how you can save 20-40% on your federal taxes.
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