Relocating to Puerto Rico for Tax Act 20 & 22?

WarnerW wrote:

Hmm, looks like Mrkpytn's manufacturing may well qualify with this amendment:

"Section 1.- Amendment are made to subsection (k) Article 3 of Act 20-2012 as follows:

Article 3: Definitions;

(k) Eligible services include the following:
(xvi) Hospital services and laboratories including medical tourism and telemedicine facilities;
(xxi) Companies dedicated to international trading (known as trading companies) – Trading companies will mean any entity that produces no less than 80% of gross income from the following:
(a) sales to any persons or entities that are outside of Puerto Rico, for use, consumption or disposition outside of Puerto Rico, of products which have been manufactured inside or outside of Puerto Rico and have been bought by the eligible business for resale;"

If I understand him correctly, paragraph (a) seems to describe him well, so long as he sells none of his products in Puerto Rico.

So I can sell Alcapurrias to the states and qualify, Weepa. (kidding , too much work).

KWRealEstate_Act2022 wrote:

Yes Warner,

The purpose of Act 20 is to develop Puerto Rico as an international export services center. If you have a business with that in mind. You may qualify!!

Right, but the operative word is (or at least was) "service".  An economy is made up of three sectors: agriculture, manufacturing and services.  Act 20 was designed to attract service industry to the island, but ones that would not displace domestic service providers.  Thus the requirement that the services be international.

What Mrkptyn is doing (again, if I understand it correctly) is not services, but manufacturing.  He is importing raw materials, assembling them into a finished product, and selling them.  That seems to me to be the very definition of "manufacturing".  Isn't that, after all, what automobile manufacturers do?

But now it seems that the PR government is so desperate to attract businesses that they have redefined "services" to include manufacturing -- so long as it is for the international market, and doesn't displace domestic manufacturing.  They also don't seem to care so much about the direct creation of jobs, relying instead on increased consumption of local goods and services to drive the local economy.

For what its worth, I think this is a good idea on their part.  However, I would note that the willingness of the PR Government to change the rules of the game is troublesome.  While I find this current promise attractive, can I trust the Government to keep it's promises?  Thousands of investors would tell me otherwise.

KWRealEstate_Act2022 wrote:

Rey, it sounds easy but is not. You could quality if you make a unique type of Alcapurria lol. People go crazy for Puerto Rican stuff in the states.

I could since what I do is web security and Penetration Testing, but I am too lazy at the moment to get back to work, so if I do 3-4 months worth of work a year I will do it as a regular local and pay the standard taxes. Not motivated to go back to work.

ChristianEKR wrote:

Rey let’s talk I own a b2b platform and if I have your information that would be great for when our next round of testing comes up!

I send a private message.

sandrarduncan wrote:

***

ACT 20/22 is for people with means and was specifically designed to provide tax breaks and attract rich people. The government is trying to attract people of means, that is the whole point. Also those taking advantage of the law, have no moral obligation to help neither the island nor the people, their obligation is to help themselves. You are imposing your views on their actions and your response. We are here to help people regardless of wealth with answers to their questions, we also provide advice when we can to benefit them, regardless of the effect it has on the poor, this is not a political site.

sandrarduncan wrote:

Sorry, i am tired of the Non sense on the island and how it effects the hard working people here. This isnt a point of view , its a fact. I am not puerto Rican.  However i do stick up for whats right, regardless if i will benefit from it.   It wrong to take advantage and that is why we have never have.

Did you registered to vote in PR?

Act22 wrote:

Im going to share my wisdom on other website forums where honest discussions are allowed.  What good is a forum where the moderators run off their posters/customers?!?!   

Act 20 and 22 are government programs that are supported for or against various political parties.  They cannot be discussed without also discussing political agendas.  Good grief.

Asking if people registered to vote is a political question, asked by a mod, yet that is allowed.

Honest debate shouldnt be censored.  Spamming and advertising should be censored.

Act 20 / 22, 60 / 74 are government programs in Puerto Rico. Discussing the advances and disadvantages is perfectly ok. But when a member starts complaining that such programs exist and how rich people are squeezing the island, we are past the discussion which is meant to provide information that helps the people make a decision if the program will work for them or not.

We are here to help Expats and US citizens with information on how to move to the island and help them integrate. Activism and causes have nothing to do with that mission.

If you have a problem with how I monitor the site, you are welcome to complain to the owners of the site. At the top right of every post there is a “Report” button where you can complain about my posts or any other posts. You can also if you like drop out of the group if you are offended in any way. You decide.

BTW, this is not a democracy, this is a company who publishes a site, they make the rules and they decide what they like or not. Not sure why you think it is a democracy or why you think it should be one.

dfeld31 wrote:

Hi there. I'm considering moving to PR to take advantage of the Act 20 benefits. One issue I'm facing is that I currently have merchant accounts in the US to do credit card processing. I have good relationships that I've built with them throughout the years.

Many of them do not support PR entities however. Has anyone dealt with this? Is there a workaround where I can still use my US merchant accounts?

I could be wrong but you are likely to need both credit card processing systems.

If your business line is not services act 20/22 act 60/74  will not work for you.

The above acts require that you do almost all your business with non PR customers