The tax benefits available through Act 27 have made Puerto Rico a prime location for film production. Even more impressive than the exotic scenery and award-winning talent available on the island is the list of tax credits and incentives that dramatically reduce production costs.
At Delerme CPA, LLC, we're experienced in tax planning for the film industry with a special focus on helping movie and film production companies capitalize on the generous tax incentives offered in Puerto Rico. Our CPA firm will show you how much you can save on taxes by bringing your next project to the island.
Act 27 Tax Incentives
Under Act 27, the film industry can reduce production expenses with a wide array of economic incentives. Some of the striking tax benefits you can expect include:
- 4% fixed income tax rate on income derived from the production
- 100% tax exemption on dividend distributions
- 40% production tax credit on all payments to Puerto Rico resident companies and individuals
- 25% infrastructure tax credit on development or expansion costs
- 20% production tax credit on all payments to qualified non-resident individuals
- 100% tax exemption on municipal and construction taxes
- 90% tax exemption from real estate property taxes
Who's Eligible for Act 27?
The hefty tax incentives that are provided under Act 27 extend to projects like feature films, short films, documentaries, television programs, and commercials. It also includes recordings of live performances, original soundtracks, and certain types of other productions.