Export of Services
Chapter 3 of Code
Export of Services
Act 60-2019, the Puerto Rico Incentives Code, groups together most of Puerto Rico's incentives laws into a single uniform code. Chapter 3 of the Code contains the Export of Services Incentives previously offered under Act 20-2012.
This incentive, available both to Puerto Rico residents and people coming from abroad, applies with respect to any entity with a bona fide office or establishment located in Puerto Rico that is or may be engaged in an eligible service. Services must be performed for non-resident individuals and/or foreign entities that have no nexus with Puerto Rico and the Eligible Service provided must not be related to the conduct of a trade or business in Puerto Rico.
Export Services
What are the Eligible Services?
- Research & development
- Advertising and public relations
- Consulting services
- Creative industries services
- Production of blueprints, architectural & engineering services, and project management
- Professional services, such as legal, tax, and accounting
- Electronic Data Processing Centers
- Computer Software Development
- Distribution and Licensing of software via physical distribution, cloud computing, blockchain, web based, SAAS, etc.
- Telecommunication services
- Call centers
- Shared service centers
- Educational and training services
- Investment banking and other financial services
Benefits
Benefits of the Export of Services Incentive
4%Income Tax Rate on eligible services.
Tax Free DistributionsTax Free Distributions to PR residents.
75%Exemption on real and property taxes.
50%Exemption on volume of business taxes.
30 year total15-year decree term, renewable for an additional 15-year period.