Puerto Rico, as a territory of the United States is subject to U.S. federal laws.
However, when it comes to income taxes, Puerto Rico is considered as a foreign tax jurisdiction. This unique status allows Puerto Rico to offer generous tax incentives for income sourced within the Island.
At Estrella LLC, our Tax Practice provides guidance to clients navigating Puerto Rico’s distinct tax landscape. We specialize in tax planning, securing tax decrees, and leveraging other incentives to help businesses and individuals achieve their financial goals. Our deep knowledge of Puerto Rico’s tax codes, enables us to identify and maximize the benefits of the island’s attractive tax incentives, such as those available under former Acts 20, 22, and now consolidated in Act 60 of 2019, designed to promote investment and economic growth.
We also assist clients doing business in Puerto Rico by providing comprehensive guidance on various tax-related issues, including the Impuesto sobre Ventas y Uso (IVU), withholding taxes, property taxes, and other pertinent tax obligations. Our expertise ensures that clients are well-informed about the complexities of the IVU, which is Puerto Rico’s sales and use tax, and how it impacts their transactions. Additionally, we offer detailed advice on withholding requirements to ensure compliance with local regulations. Our services also encompass property tax assessments and payments, helping clients navigate the intricacies of property ownership and taxation in Puerto Rico. By addressing these and other tax-related concerns, we enable our clients to focus on their core business activities while remaining compliant with Puerto Rican tax laws.
Our team excels in securing tax decrees for clients, streamlining the application process, and ensuring compliance with all necessary requirements. These decrees offer substantial benefits, including reduced income tax rates, exemptions on dividends, and other tax advantages tailored to specific industries or individual investors. Additionally, we provide tailored advice on structuring business operations and transactions to maximize tax efficiency while minimizing liabilities.
With a proactive approach to tax planning and a commitment to staying current with Puerto Rico’s evolving tax regulations, we deliver customized solutions that empower clients to achieve sustainable financial success. Whether you’re an entrepreneur looking to benefit from local incentives or an established business seeking to optimize your tax position, our team is here to guide you every step of the way. Let Estrella LLC be your trusted partner in navigating Puerto Rico’s unique tax environment and securing a prosperous future for your business.
