Act 20 Law for Promotion of Export of Services
The act 20 benefits service export companies. Under the Act 20, the service export provider can receive a reduced tax rate to the export of all kinds of services. This applies to local service providers who are encourage to expand their business and export their services. As well as to encourage foreign service providers to move to Puerto Rico and to create new employment opportunities in the island.
- Law No. 20-2012 (signed January 17, 2012) – Act 20 –
Act 22 Individual Investors
Act 22 seeks to attract new residents to Puerto Rico by providing tax incentives for U.S. high net worth taxpayers. The Act 22 applies to new residents of Puerto Rico for a total exemption from Puerto Rico income taxes on all passive income realized or accrued after such individuals become residents of Puerto Rico (resident by the definition of the law). To qualify, the new resident must not have been a resident of Puerto Rico at any time from January 16, 1997 through January 16, 2012.
- 100% tax exemption on interest and dividend income for new residents of Puerto Rico
- 100% tax exemption on all long-term capital gains accrued after becoming a new resident
Act 22 offers the opportunity to completely avoid federal taxation on passive income as well as Puerto Rican taxation on the same income.
- Law No. 20-2012 (signed January 17, 2012) – Act 22 English
- Act 22 Summary PRIDCO
- Puerto Rico’s population swap: The middle class for millionaires http://www.bbc.com/news/magazine-32344131(BBC)
- Massive $100B+ capital market looms in Puerto Rico (Business Puerto Rico Today)
- Viable and legal tax haven (The Speaker)
- Billionaires Should beware of Puerto Rico (CNN Money)
- What millionaires moving to save on taxes says acerca them, and us (Washington Post)
- Why You Should Move to Puerto Rico Before Selling Your Business (American Express OpenForum)
- Act tax shelter occurs moving 10 “mega rich” (NotiCel)
- Paulson eyes Puerto Rico tax haven move (Financial Times)
- PR tax law luring hedge-fund heavy (Caribbean Business)
- Warning millionaires on Puerto Rico (El Nuevo Día)