Act 20/22 Incentives Services

In 2008,  went into effect a new Economic Incentives Act for the Development of Puerto Rico (herein after, Act 73 or Economic Incentives Act).  4 years later in 2012, two additional laws were enacted: Act 20 and Act 22, promoting the export of services from Puerto Rico and the transfer of wealthy individuals to Puerto Rico. These new laws established a legal framework of incentives designed to stimulate the establishment and development of a wide array of ventures, among them manufacturing, social media, other internet-based operations, commercial businesses, and the export of services.

Act 20 – “The Export Services Act”

• 4% corporate tax rate
• 100% tax exemption on dividends or profit distributions
• 100% exemption on property taxes
• 0% property taxes – 100% exemption for initial 5 years

Act 22 – “The Individual Investors Act”

• 100% exemption on all dividends & interest income
• 100% tax exemption on all capital gains
• 4% corporate tax rate

As tax experts, we will guide you through the process of the incentives applicable to your business.

Other Consulting Specialties

Other consulting specialties include:

• Risk management and risk assessments
• Business start- ups
• Corporate policies and objectives
• Cash management
• Business benchmarking and performance measurements
• Succession planning
• Advising individuals on Personal Finance Planning, including retirement and estate planning.
• Reviewing a company’s accounting system and recommending improvements.
• Consulting on business problems and advising ways to improve the use of a client’s resources.
• Conducting special studies for your business.
• Working with clients, attorneys, and bankers on mergers, acquisitions, and expansions.