The actual rates vary among industry types. The employer is solely responsible for payment of the assessed premium. It also applies to an employer whose employees are usually or regularly required or allowed to operate a motor vehicle as an inherent part of their work. Every corporation is required to file an annual volume-of-business declaration with each of the municipalities in which it establishes or conducts business operations during the year.
The declaration must indicate the actual volume of business i. When a business operates in more than one municipality but does not receive income in all of them, the license tax shall be computed based on a distribution of sales apportioned to each municipality by square feet of the building used in each municipality.
For a non-financial business, the license tax payment varies from a minimum of 0. The payment must be made in two equal instalments on or before 15 July and 15 January on the basis of the volume of business generated by the entity during its accounting year ended within the immediately preceding calendar year before the due date of the declaration.
For the first six months after a new business is established, the new company is generally exempt from the municipal license tax, provided that the business informs the municipality that it has established a new business in the municipality within the first 30 days of operations and requests the provisional license tax as established in each municipality.
A copy of the municipal licence is generally requested as a perquisite for obtaining other licences and permits in Puerto Rico. Your message has been sent. Your message was not sent. Please try again. Cancel Send. Corporate Significant developments Taxes on corporate income Corporate residence Other taxes Branch income Income determination Deductions Group taxation Tax credits and incentives Withholding taxes Tax administration.
Individual Significant developments Taxes on personal income Residence Other taxes Income determination Deductions Foreign tax relief and tax treaties Other tax credits and incentives Tax administration. 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, Effective 1 March through 30 June , services to other merchants and professional designated services rendered by merchants with annual volume of business of less than USD , Effective 1 July , services to other merchants rendered by merchants with annual volume of business of less than USD , Services rendered by a non-resident to a related party that is engaged in a Puerto Rico trade or business and holds a tax grant pursuant to Act No.
Intangible rights. Advertising and promotion services. Construction subcontracted services and subcontracted telecommunication services. Toll manufacturing services or contract manufacturing services. Repair, maintenance, and conditioning of aircraft provided by a merchant that holds a tax grant pursuant to Act No. Customs duties and import tariffs Puerto Rico does not have customs duty and import tariff provisions. Excise taxes There are certain articles subject to a special excise tax, such as cigarettes, fuels, crude oils, vehicles, alcoholic beverages, cement, sugar, and plastic products, among others.
Under that section, bona fide residents of Puerto Rico can exclude their Puerto Rico source income from U. Act 20 provides incentives to companies exporting services from Puerto Rico. Specifically, a U. Consider the following examples comparing a U. Example 1 : X is a U.
He wants to create a Puerto Rican pass-through entity, LLC, which would provide legal, tax and accounting services. He applies for the Act 20 exemption. Act 20 requires that the service provider obtain a tax exemption decree, signed by the Secretary of the Department of Economic Development and Commerce of Puerto Rico. Significantly, as a contract with the Puerto Rico Government, not subject to legislative change, this decree will have a guaranteed year term, renewable for 10 additional years if certain criteria are met.
Act 22 entices individual investors to move to Puerto Rico. The law provides corporations a 3-month extension of time to file the return. The extension must be filed not later than the due date of the return together with payment of the tax. The financial statements of foreign corporations engaged in business in Puerto Rico should reflect solely its operations in Puerto Rico. The audited financial statements and the corresponding opinion of the Certified Public Accountant on such statements are exclusively the financial statements of the corporation filing the return and not consolidated or combined statements with other affiliates, even when the information of the individual corporation subject to the personal property tax in Puerto Rico is included as supplementary information.
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours. Thanks for signing up! To complete your registration, please click the verification link sent to: If you do not receive an email within 15 minutes, please check your spam folder or contact us for help. Sign Up. Reset your password Instructions were sent to: If you do not receive an email within 15 minutes, please check your spam folder or contact us for help.
Enter your login email address and instructions for resetting your password will be sent.
0コメント