By commercialpartners / 04-25-2024
In order to promote the necessary conditions to attract investment from industries, support small and medium merchants, face challenges in medical care and education, simplify processes, optimize and provide greater transparency, Act 60-2019 was signed, which establishes the new Puerto Rico Incentives Code.
Puerto Rico Incentives Code Act: An economic development tool based on fiscal responsibility, transparency and ease of doing business. In order to promote the necessary conditions to attract investment from industries, support small and medium merchants, face challenges in medical care and education, simplify processes, optimize and provide greater transparency, Act 60-2019 was signed, which establishes the new Puerto Rico Incentives Code. Its main objective is to promote economic development on our island. It provides certainty related to the types of incentives that Puerto Rico offers to attract investment and create jobs in very important and traditional sectors such as manufacturing, tourism and agriculture; as well as aerospace, biosciences, technology, renewable energy, entrepreneurship and export services. In addition, it defines new incentives to support emerging sectors, such as the creative, eSports and entertainment industries. And it is based on metrics that will measure its effectiveness and the return on investment of all the incentives granted.
One of the benefits of Act 60-2019 is that it consolidates in one place dozens of previously approved incentive Acts, harmonizing and standardizing as much as possible, tax incentives applied to income, royalties, dividends and distribution of interest, and profits from capital. It also adjusts municipal contributions to provide more participation to municipalities and increase their capacity to generate income, while maintaining a competitive level and the certainty required to attract investment. Furthermore, the small and medium businesses eligible under this Act, as well as exempt companies with operations in Vieques and Culebra, could receive additional tax incentives during the first five years of operation; and new incentives are added.
This new tool will be an important component to promote job creation, investment in strategic sectors, innovation, exports, talent retention, international competitiveness and economic development of Puerto Rico. All changes are forward looking and do not apply to existing incentive contracts.
Find out how you can benefit from the new Puerto Rico Incentive Code by clicking here (PDF File)! To read the Spanish version, click here (PDF File).
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