How Public Law No. 20 & Public Law No. 22 benefit you?
Public Law No. 20 of 2012 provides attractive tax incentives for companies that establish and expand eligible export services businesses on the island. On the other hand, the Public Law No. 22 of 2012 seeks to attract new residents to the island by providing certain exemptions from local income taxes on particular gains realized or accrued after the individual becomes a resident of Puerto Rico.
Public Law No. 20 benefits are:
4% fixed corporate tax rate for eligible businesses.
100% tax exemption on dividends from eligible export services businesses.
20 year-guarantee for these rates.
Significantly reduced property and municipal taxes.
Public Law No. 22 benefits are:
100% tax exemption on qualified dividend and interest income for new Puerto Rico residents.
100% tax exemption on all long-term capital gains accrued after becoming a new resident.