Act No. 60-2019, known as the Tax Incentives Code of Puerto Rico, (“Act 60”) was passed on July 1, 2019 with the aim of merging all tax incentives into one single code in order to make business development in Puerto Rico more effective. Act 60 includes and replaces those incentives previously housed in Act 20 and Act 22, and other tax decrees, subsidies, incentives, and benefits, as of January 1, 2020.
The new incentive program was designed to support growth in the following sectors and economic activities:
- Individuals (previously Act 22)
- Export of Services and Goods (previously Act 20)
- Financial and Insurance Services (previously Act 273)
- Manufacturing, including R&D (previously Act 73)
- Visitor Economy
- Infrastructure & Green Energy
- Creative Industries
- Entrepreneurship and others
Act 60 benefits include:
- 4% fixed income tax rate on eligible income
- 100% tax exemption on dividends
- 75% exemption on property tax
- 50% exemption on municipal license tax
- 15-year grant period, subject to renegotiation for another 15 years.
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