Saturday, June 22, 2013

About The Puerto Rico Tax Incentives

By Lana Bray


The Puerto Rico tax incentives offers tax benefits for certain US citizens who relocate to Puerto Rico. This is a scheme that was initiated in order to ensure the island becomes competitive in attracting investors and offer opportunities for companies from across the globe. The island is now courting millionaires and billionaires by offering benefits for wealthy individuals and US corporations.

One sector that is being targeted is manufacturing and other strategic areas are also targeted. Local government in the island started the scheme for the purposes of assisting operations in this island to become even more profitable if you are a manufacturing firm. Various Acts were introduced to make sure this is a viable program.

An adequate environment is provided and there are additional opportunities that are available. Companies that are targeted are the ones that are dedicated to added vale and state-of-the-art technologies. Investments on research have been promoted through the initiative and exemptions and credits are granted to private and academic sectors.

The manufacturing sectors can have their taxes pegged at only four percent for the income derived through industrial development. Some special deductions have been given for investments made for machinery, equipment as well as structures. For a manufacturing firm having sales exceeding $100,000 every year, they will become provided with marketing incentive programs.

A business that is engaged in export services, the taxes that are charged are only four percent and this figure can become three percent. 100 percent exemption will be given for dividends and profit distributions. No property taxes are levied for certain companies and twenty years decree has been made and it guarantees these rates. This scheme can also increase by an additional ten years.

For individual investors, they will not be required to pay any taxes for passive income that is earned after they become residents. In order to qualify for such an incentive, you should have been a resident in this island between January 1997 and January 2012. This is a wonderful incentive and you cannot pay tax for interests or dividend income.

For the agricultural sector, farmers will not pay any taxes when they buy agricultural equipment. There will be no property taxes for land buildings and motor vehicles among others. There is also a hundred percent exemption on the municipal taxes. Stamp payments to the treasury department of the island will also be waived.

For earnings that a farmer has earned from their agricultural activities, the island will ensure that 90 percent of such earnings have not been taxed. For agricultural business that is eligible, fifty per cent credit is given for investment. Workers in agricultural sector also get annual bonuses while wage subsidies are given to eligible farmers.

An entire film can be filmed in the island from the beginning to the end because it is an amazing location and state-of-the-art equipment for post production as well as recording facilities is available. This is the reason why there are benefits that the film industry can get and many are available. For additional information about this attractive Puerto Rico tax incentives, you can do some research on the internet.




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