Act 20

Act No. 20-2012, as amended, known as the “Export Services Act” (“Act 20”), was created to export services from Puerto Rico businesses. Act 20 benefits include:

  • 4% fixed income tax rate on eligible income
  • 100% tax exemption on dividends
  • 100% exemption on property taxes
  • 60% exemption on municipal license tax
  • 20-year grant period, subject to renegotiation for another 10 years.

While you may no longer request a new Act 20 decree, you may purchase an existing one or receive services from a company with an existing decree. See Outsourcing Solutions and Act 60 sections of our website. Here is a list of the most popular business activities, markets, services and products that allow you to receive the tax exemptions and business incentives under Act 20:

  • Shared service centers and centralized managerial services
  • Call centers
  • Financial services
  • Research and development
  • Advertising
  • Public relations
  • Consulting services
  • Graphic design
  • Architectural services
  • Engineering services
  • Software development
  • Telecommunications
  • Medical services
  • Laboratory services
What Are the Steps?

See If You Qualify

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