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Every young person resident of Puerto Rico, who is a salaried employee and is between the ages of sixteen (16) and twenty-six (26) may benefit from the $40,000 Exemption from wages earned during the taxable year.
Any natural or legal person doing business in Puerto Rico who makes payments (Payer) for rendered services must deduct and withhold 29% from the payment made to Foreign non-resident individuals and foreign corporations and partnerships that are not registered in the Puerto Rico State Department to engage in trade or
Puerto Rico Minimum Wage The Minimum Wage Act establishes that the federal minimum wage fixed by the Fair Labor Standards Act (FLSA) applies automatically to non-exempt employees in Puerto Rico who are covered by the FLSA.
Personal exemptions The personal exemption is USD 3,500 per individual and USD 7,000 for married taxpayers living together and filing jointly. The exemption for each dependant is USD 2,500. The veterans exemption is USD 1,500. Puerto Rican non-resident foreign nationals are not allowed any exemptions.
Every young person resident of Puerto Rico, who is a salaried employee and is between the ages of sixteen (16) and twenty-six (26) may benefit from the $40,000 Exemption from wages earned during the taxable year.

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The minimum wage has been revised in Puerto Rico, with effect from 01 July 2023. The minimum wage has increased from $8.50 to $9.50 per hour. Note: This minimum wage increase might not reflect the inflationary trends.
An exemption of the income tax withholding is provided for employees from ages 16 to 26 on the first $40,000 of taxable wages. The withholding rates depend upon the personal exemption and credits for dependents claimed in the withholding exemption certificate (Form 499R4l) to be completed by every employee.
Exempt wages are portions of an employees income that arent subject to federal, state, or local taxes. The reason these wages are shielded from tax withholdings could be due to an employees tax-exempt status or how the income is being used.

formulario 499 r 1b