Puerto Rico Incentives Code Department of Economic 2026

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  1. Click ‘Get Form’ to open the Puerto Rico Incentives Code Department of Economic form in our platform.
  2. Begin by entering your business information, including the Employer Identification Number and contact details in the designated fields.
  3. Fill out the income sections accurately, ensuring you report all relevant income derived from exempt activities as specified in the instructions.
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Under Act 60-2019, eligible manufacturing businesses can qualify for a fixed income tax rate of 4% on industrial development income. This preferential rate applies to income derived from manufacturing activities conducted within Puerto Rico, including production, assembly, processing, and packaging of goods.
Relocating to Puerto Rico for tax advantages involves trade-offs beyond the financial. To qualify for tax incentives, individuals must establish bona fide residency, sever docHub ties with the mainland and pass IRS scrutiny.
By moving to Puerto Rico through one of the tax programs which require you to have NOT lived there in the last fifteen years you can take advantage of a 4% income tax rate, 0% dividend rate, and 0% capital gains tax rate.
Section 1062.03 provides for different waivers for the withholdings for services rendered. The waiver provides a special tax treatment regarding 7% withholding for certain taxpayers. Service provider is 100% released from withholding. An individual may apply for a total waiver if he/she starts a service business.

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