Puerto Rico’s Laws: Act 20 and 22 – Things to Know
You may have heard that Puerto Rico has approved laws, Act 20 and 22, which affect the future of small business ownership in the island. These two acts are designed to help stimulate economic growth by providing investors with benefits such as tax exemptions and reduced regulations on businesses. While not all details have been released yet for these new laws, we can tell you that they represent a shift in how Puerto Rico is trying to attract investment dollars to their economy.
General information on Act 20 and 22
Act 20 is designed to incentivize individuals to invest in Puerto Rico by providing new benefits like a full tax exemption for ten years and reduced regulations. Act 22 provides similar incentives, but targets corporations instead of individual investors. Corporations who take advantage of act 22 will be able to incur 100% foreign taxes on income they earn from patents...