Puerto Rico provides unparalleled value that no other location
can match . It is a United States community with a foreign
tax structure. Here you can enjoy the benefits and protections
of operating within a U.S. jurisdiction with the added tax
benefits of operating under a Controlled Foreign Corporation
(CFC) structure. Profits from sales to the US mainland are
free from U.S. taxation and goods enter the U.S. market duty-free.
In addition, Puerto Rico offers a highly attractive incentives
package that includes 100% exemption from multiple taxes;
special treatment for pioneer
industries and much more.
With a 7% maximum tax rate, tax deductions and exemptions,
cash grants, and a financial environment with scores of financing
options, Puerto Rico eases the financial burden of your company,
making it the perfect place for profits and growth. The government
of the Commonwealth of Puerto Rico is committed to supporting
this pro-business view by offering a wealth of incentives
and favorable tax laws combined with cash grants, tax credits,
and venture capital initiatives, further enhancing your bottom
line.
Maximize your profits with these
and other incentives:
7% maximum corporate income tax rate with some qualified
companies paying as little as 2 %.
2-0 % special corporate tax rate for “Pioneer Industries”
A 200 % super-deduction for research and development
and job training costs.
Accelerated depreciation for investment in buildings,
machinery and equipment with unlimited loss carry forwards.
100 % deduction on real and personal property taxes during
initial construction and first-year of operations.
The opportunity to conduct business in the most comprehensive,
noncontiguous Foreign
Trade Zone system in the U.S.
The Controlled Foreign Corporation
(CFC) Investment Model
There’s more than one way to look at your operations in
Puerto Rico. The CFC investment model is one that offers particular
benefits and higher returns to both U.S. companies establishing
CFCs and previously existing CFCs. There are three different
models that you can follow, to maximize the advantages offered
by Puerto Rico’s tax benefits.
Puerto Rico has the most comprehensive, non-contiguous Free
Trade Zone system in the USA. The system will allow companies
to obtain significant financial savings opportunities, since
raw material, components, finished goods and packaging may be
storaged in and transported tax free through these zones. Items
shipped abroad after processing are exempt from taxes.
Benefits of the FTZ in Puerto
Rico include:
Deferred US customs duties
No US custom duties and Puerto Rico excise tax payments
on products exported to foreign markets
The public and private sectors in Puerto
Rico have joined forces to make locating or expanding your
business in Puerto Rico financially attractive. Private and
government banks provide long-term or low-interest loans for
new businesses locating here. In addition, financing is available
from a variety of sources.
Take a look at the following alternatives:
The Government Development Bank of Puerto Rico (GDB) makes
long-term and large loans to the private sector.
The Puerto Rico Economic Development Bank loans or guarantees
loans up to $1.5 million and also invests in qualified high-risk
projects.
AFICA sells Puerto Rico tax-exempt industrial development
bonds to provide low-cost financing to some projects.
The Special Fund for Economic Development provides for
economic development in specific scientific and technical
research, risk sharing programs for new small businesses
and managing tax-exempt businesses.
Venture Capital initiatives promote venture capital financing
for growing companies.
