Act 60 manufacturing

Act 60-2019 Section 2061.01 [Ex Act 73]

Effective January 1, 2020, the Puerto Rico Tax Incentives Code (Act 60-2019) consolidates, makes changes to, and eliminates the various legacy Puerto Rico incentives laws, including Acts 20, 22, 73 and 74. Interested parties can no longer apply for tax incentives under the old Acts.

Benefits

  • 4% income tax rate

  • 100% exemption on dividend distribution for PR residents

  • 75% exemption on real and personal property taxes

  • 50% exemption on municipal revenue taxes

  • 100% exemption on sales tax

  • 75% exemption on construction excise taxes

  • 15 year term + 15 year extension

Requirements

  • Application:

    • Sworn statement containing:

      • Name, address, telephone and EIN of entity

      • Names and SS numbers of all owners

      • Contact info of representative

      • Description of Eligible Business

    • Cert. of Incorporation

    • Financial Statements

    • Negative Debt Certificates from Hacienda, CRIM, Dept. of Labor, State Insurance Fund, and Tourism Company.

    • Construction Permit and Plans

    • Use Permit and other compliance

    • Certificate of Insurance Coverage

    • Real and Personal Property Inventory

    • Job creation estimates

    • Total investment detail

    • Sources and Uses of Funds

    • Estimated opening date

    • Property Safety Plan, Handicapped Facilities, Conservation Plan, and Personnel Training Plan.

Eligible Activities

Eligible activities include :

  • any permanent industrial facility for the commercial scale manufacture of a product

  • the scientific or industrial research and development .mption on dividend distribution for PR residents