act 60 - export services

• 4% income tax rate on eligible export services

• 0% tax on dividends and distributions to PR residents

• 50% exemption on Municipal Revenue Taxes

• 75% exemption on Property Taxes

• Term of 15 years + 15 renewable option

• The service provided from Puerto Rico must be to a client outside the island (i.e. export service) and the service itself must have no nexus to Puerto Rico (i.e. rendered to a resident of Puerto Rico or related to operations in Puerto Rico of an existing or proposed customer).

• Non-export eligible services are taxed at normal applicable Puerto Rico rates.

Requirements

(for new businesses)

• Two (2) commercial references addressed to the Director of the Office of Industrial Tax Exemption (at least one of them should be a from a bank);

• Resume or curriculum vitae for each direct or indirect stockholder, partner or member;

• Copy of Certificate of Registry or Certificate of Authorization to Do Business in Puerto Rico, issued by the Puerto Rico State Department;

• Ownership chart containing intermediate or related entities of the Applicant. It should include information up to the ultimate stockholders, partners or members;

• Criminal record of every direct or indirect stockholder, partner, or member of the Applicant, issued by the corresponding authority of the State or Country of last residence;

• Copy of Employer Identification Number;

• Financial forecast of job creation (number of employees and payroll), an estimate of the initial investment in PR (land, buildings, equipment, etc), and a P&L projections for three years.

• Government Fees:

  • $1,055.00 Initial Filing Fee

  • $55.00 Decree Acceptance Fee

  • $55.00 Start of Operations Notification Fee

• Research and Development - activities related to discovery, research, experimentation, testing and verification of new and improved processes or products.

• Advertising and Public Relations - commercially reasonable forms of communication used to persuade an audience to purchase its products; services to enhance or maintain an image of a business or organization.

• Consulting - includes economic, environmental, technological, scientific, marketing, human resources, information technology, and auditing consultancy.

• Advice on Matters Relating to Business - advisory services not otherwise excluded that are designed to assist clients with improving operational efficiency, enhancing business processes, and maximizing profits.

• Productions of Blueprints, Architectural and Engineering Services, and Project Management - rendering of design and construction plans, creation of construction schedules, and day-today management of projects.

• Professional Services - includes services with specialized training such as legal, tax and accounting.

• Centralized Management Services - services to assist in the performance of management functions, such as strategic management, planning and budgeting, which are carried out by a central company (headquarters).

• Electronic Data Processing Centers - includes any organized assembly of resources and methods used to collect, store, process and distribute electronic data primarily by automatic means.

• Voice and Data Telecommunications - the provision of facilities and personnel to allow the transmission of voice and data communications both originating from and terminating outside Puerto Rico.

• Call Centers - the operation of organized locations for the central receipt or placement of actual or potential customers manned by live individuals for the purposes of advancing the interests of trades, businesses, government entities, or charitable institutions.

• Shared Service Centers - operations that provide accounting, legal, financial, tax, auditing, marketing, engineering, quality control, human resources, communications, electronic data processing, and other centralized administrative services to businesses.

• Education and Training - the operation of in-person or online schools to provide technical or professional training and other similar activities.

• Hospital and Laboratory Services - includes laboratories, telemetry services, x-ray services, magnetic resonance imaging services, blood testing, and other similar services that assist in the rendering of medical care.

• Investment Banking and other Financial Services - includes asset management, management of alternative investments, management of activities related to private equity investments, management of covered funds or high risk funds, dealing with pools of capital, administration of trusts, escrow account management services, municipal finance, and other activities that assist customers with the management of investment funds.

• Development of Computer Programs - includes development of licensable computer software of general application as well as custom-made software.

• Creative Industries - design, art, music, publications, development of apps and video games, and creative education undertaken to convey a message to an entity's desired audience.

• Distribution of Programs - service of physical, online or by cloud of programs or as part of a blockchain, and the income derived from the program licensing, subscriptions or service charges.