Other Puerto Rico Tax Incentives

Puerto Rico small business

The tax incentives available in Puerto Rico have been extended to many types of businesses across a wide variety of industries. Delerme CPA, LLC is well-versed in the rules and regulations surrounding these incentives and will point you towards the best opportunities to save money on taxes for your business. Some of the other tax credits and exemptions offered include:

Act 120 - Tax Incentives for Small to Mid-Sized Businesses

Small and midsize businesses have good reason to consider putting down roots in Puerto Rico. Under Act 120, these businesses can qualify for:

  • 5% fixed income tax rate for 1st year
  • 10% fixed income tax rate for 2nd year
  • 15% fixed income tax rate for 3rd year
  • 50% tax exemption on personal and real property taxes and municipal license taxes
  • 50% reimbursement of the federal minimum salary on up to 15 employees for 12 months

Act 135 - Tax Incentives for Young Entrepreneurs

Entrepreneurs between the ages of 16 and 35 years old can qualify for a number of appealing tax incentives under Act 35 that bring big savings to emerging companies. These include:

  • 0% fixed income tax rate on gross income up to $500,000
  • 100% tax exemption on personal and real property taxes
  • 100% tax exemption on municipal license taxes

Act 14 - Tax Incentives for Medical Professionals

To attract physicians, dentists, surgeons, and other medical professionals to Puerto Rico, there are many impressive tax incentives provided under Act 14. These include:

  • 4% fixed eligible income tax rate for those offering professional medical services
  • 100% income tax exemption on up to $250,000 in income derived from qualifying dividends
  • Ability to add up to 25% of net income to an individual or corporate retirement plan

Act 74 - Tax Incentives for Tourism Development

While tourism is not new to Puerto Rico, there are still solid tax incentives offered through Act 74 that make starting a tourism business here very inviting. Hotels, small inns, timeshares, golf courses, theme parks, and marinas all may qualify for the following benefits:

  • 90% exemption on income tax (100% exemption if located in Vieques or Culebra)
  • 100% exemption on municipal construction excise taxes
  • 100% exemption on sales and use taxes
  • 100% exemption on excise taxes and other municipal taxes for new projects
  • 90% exemption on excise taxes and other municipal taxes on existing projects
  • Up to 90% exemption on personal and real property municipal taxes

Call us now at (404) 445-8095 or request your free consultation online to learn more. Our CPA firm has offices in the United States and Puerto Rico.