The Act extends its benefits to enterprises ranging from advertising to legal services, among others. Eligible activities can profit from benefits on income derived from customers who are located out of Puerto Rico in regards to services rendered from Puerto Rico. Such benefits are:

• An extraordinary 100% tax exemption on distributions from earnings and profits;
• 90% tax exemption from personal or real property taxes for certain types of businesses;
• A 60% tax exemption on municipal taxes. However, the business will benefit from a 90% tax exemption if it operates in the industrial development zone in the municipalities of Vieques and Culebra;
• A 4% fixed income tax rate; and
• 3% fixed income tax rate in the case of strategic services.

PR Act 60 Chapter 3 (formerly Act 20) also decreases operational spending for companies moving to Puerto Rico to help their operations remain profitable by providing the following tax incentives:

• An incredible 100% tax exemption on dividends or profit distributions;
• 100% exemption on property taxes; and
• A 4% corporate tax rate.

To learn more about PR Act 60 Chapter 3 (formerly Act 20), contact us at (787) 641-8447 or use our contact form.

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Mr. Castellanos is personally supervising all legal and consulting work done by Castellanos Group, P.S.C., including but not limited to, client development and client communication, among other areas of the law, including all new investment tax exempt laws (including PR Act 60 Chapter 3, Formerly Act 20) in Puerto Rico. He’s available to our clients 24/7.

Mr. Castellanos’s diverse professional experience has entailed extensive work in the following areas of law: litigation, corporate law, arbitration and mediation, constitutional law, licensing agreements, entertainment law, franchise, intellectual property, construction, health care, copyright, trademark, distribution agreements, estate planning, asset protection, estates, construction agreements, patent related work, bankruptcy (Chapter 7, Chapter 11, Chapter 13, numerous adversary proceedings and contested matters, including jury trial rights in bankruptcy proceedings, security law and regulations and FINRA arbitration, administrative proceedings, among other fields of law.

For more information or an appointment please call us at (787) 641-8447 or use our contact form.

Alfredo Castellanos – LinkedIn Profile