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In order to hire employees in Puerto Rico, a foreign country needs to register with the Department of State of the Commonwealth of Puerto Rico, and if theyre doing trade or business in Puerto Rico, they will need to register with the Department of State.
Designated professional services and business-to-business (B2B) services are taxed at a 4% SUT rate. Taxable services that are excluded from SUT include, among others, the following: Services rendered by merchants with annual volume of business of less than USD 50,000.
If you are a corporation, you will also need to register with the Department of State in Puerto Rico, or with the Department of Corporations and Trademarks in the U.S. Virgin Islands.
Do U.S. citizens need a visa to work from Puerto Rico? No. You dont even need a passport. For U.S. citizens, traveling to and working in Puerto Rico is like traveling to or working in another state.
Business name and registration Register your business name with the local government where your business is located. If you are a corporation, you will also need to register with the Department of State in Puerto Rico, or with the Department of Corporations and Trademarks in the U.S. Virgin Islands.
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The laws in the Laws of Puerto Rico are passed by the Puerto Rico Legislative Assembly, which consists of the Puerto Rico House of Representatives and the Puerto Rico Senate. The House of Representatives contains 51 members, while the Senate contains 27 members.
A domestic corporation is taxable in Puerto Rico on its worldwide income. A foreign corporation engaged in trade or business in Puerto Rico is taxed at the regular corporate tax rates on income from Puerto Rico sources that is effectively connected income.
As previously mentioned, a foreign corporation may be engaged in trade or business in Puerto Rico as a division or branch of that foreign corporation or as a separate corporation or subsidiary.

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