Income tax structure for self-employed?

No it does not apply to you.
Take a look at this: http://bahiabeachpuertorico.com/puerto- … swodfTwEQw

Here is why:
1) you are not incorporated as a service company
2) You have not applied for Act 20 Service export
3) For now you will need a promissory note to hire employees, this requirement may be eliminated soon

It is not cheap to apply and the program last until around 2036 unless extended. So far around 600 individuals have taken the deal and it been going on for several years. I think there is a requirement to donate 5,000 a year to your choice of charity.

Ahhh...I see.  The real sticking point would be the employees.  If I were to incorporate and apply, the $5000 application fee is steep but would certainly be worth it balanced against the benefits after even a couple of years.  Any detailed info on when/if they might drop the employee requirement?  Just for kicks, I'm also now looking closer at Act 27, Film Industry Economic Incentives Act.  Also may apply to "other media projects".  Worth at least looking into maybe.

When you come in August talk to a CPA, will probably cost you around 75 an hour.

Yep, sounds like the way to go...my brain hurts after a couple hours of trying to sort it out myself.  Kinda sounds like I'll being filing US federal taxes just like I am now though since all my income will be off-island and from the states.

We are meeting with an attorney when we go down there in August.  From what we understand (on the surface), our internet based business  (an LLC) does qualify for Act 20 but we really need to sit down and get the specifics.

Good luck!

I'd love to hear what comes of that if you're willing to share some basics of the conversation.  Sounds like we're in a similar boat maybe and I'll probably need to arrange a similar meeting.

For what I see I don't think you qualify but I'm just a Real Estate Agent not a lawyer. I have several friends that are actually taking advantage of the incentives besides Act 2022 there's others too. I do agree with the above, to first talk to a Attorney but just contact those that specialize in this.

Please pass what you can with the rest of the members Aharkness

EricDove wrote:

I'd love to hear what comes of that if you're willing to share some basics of the conversation.  Sounds like we're in a similar boat maybe and I'll probably need to arrange a similar meeting.

Hi Eric... this is Aharkness's husband:  From my understanding, your business ABSOLUTELY qualifies.  It is precisely what ACT 20 was written to incentivize - an export service.  You need to create a PR corporation that bills your clients, and pay yourself in dividends from that corp.  It appears that they've removed the employment requirement to encourage solo-preneurs such as yourself.  There is a facebook group ~"Act 20 / 22" created by Jefferson Kim that you should join and follow.  Your ACT 20 business will pay 4% corporate taxes, if you get the ACT 20 approval, which I think you would be able to.  I've spoken to these guys, and they sound well qualified to help on these issues.

Ahhh...that's great info, thank you!  The employee requirement would be a no-go for me.  Do you happen to know any specifics on the application fee or any required yearly contributions?  Anything like that?

EricDove wrote:

Ahhh...I see.  The real sticking point would be the employees.

I haven't retired to the island yet -- could be anywhere between two and six years, but when I do, I'll put in an application.  Twenty years ago I was the morning DJ at an AM station in Richmond, VA.  I've always been told that I've got a face made for radio  ;-)