Puerto Rico, one of the fastest growing manufacturing locations worldwide, has approved a new economic and tax incentives program that will further improve the advantages of doing business on the Island . The Economic Incentives for the Development of Puerto Rico Act was recently enacted into law as Act No. 73 of May 28, 2008 and will substitute the current Tax Incentives Act of 1998.
Beginning on July 1st, 2008 this new tool allows for a wide array of tax incentives and credits that enable local and foreign companies to operate successfully in Puerto Rico enjoying the benefits of operating within a US jurisdiction, while taking advantage of a foreign tax structure.
Some of the provisions of the new law include:
- 4% fixed income tax rate
- Pioneer industries rate 0% or 1% income tax
- Combined floor of 3% for local business
- Credit of up to $5,000 per job created during the first year of operation, if the operation is located in the municipalities of Vieques and Culebra
- Up to 50% credit of qualified R & D expenses
- Credit for purchase of locally manufactured products
- Up to 10% credit of industrial energy consumption
- Special deductions for investment in structures, machinery and equipment
- Infrastructure incentives
- Statutory relief for personal and real property tax, as well as municipal excise tax
- Training incentives
- Competitive financing options
New Economic Incentives Act (English version - Spanish version)
No comments:
Post a Comment