San Juan, Puerto Rico – The Governor of Puerto Rico, Dr. Ricardo Rossello, is taking an aggressive approach to promoting the US Territory as a center for new, and innovative, businesses to relocate by making its best known incentives, Acts 20&22, more attractive to investors.
Act 20, the Export Services Act, incentivizes companies to relocate to Puerto Rico by taxing their profits at a flat 4%, and making their profit distributions 100% tax exempt. Likewise, Act 22, the Individual Investors Act, was implemented to encourage investors to live in Puerto Rico by providing 100% tax exemptions on short, and long term capital gains, as well as any dividends and interests sourced in Puerto Rico.
Originally approved in 2012 by then Governor Luis Fortuno, succeeding administrations have preserved, and fomented the incentives as one of the leading sources of investments for Puerto Rico. With over 3,000 decrees issued, people are calling the incentives program a much needed success. “In creating Acts 20&22, Puerto Rico sought diversify the sources of investments that were coming into the Island, and create a more modern platform for our economic development,” says Raul Vidal y Sepulveda, Partner of Omnia Economic Solutions, a leading full-service firm dedicated to obtaining economic incentives for potential investors. “In combination, investors wishing to remain in the US will find in Puerto Rico the most lucrative tax jurisdiction within the Union,” he added.
Seeking to improve the program, the administration of Governor Rossello, introduced strategic amendments to the program that reduced its requirements, and made them more readily available to all types of investors. One such amendment includes the elimination of a 5 employee requirement for Act 20, and the implementation of a more inclusive system that takes the investor’s business model into account. “Critics of the law originally imposed that requirement [5 employees] because they believed the program only benefited millionaires, which is ironic because the only investors that could afford a random and artificial employee requirement are in fact millionaires” commented attorney Roberto A. Corretjer (licensed in Puerto Rico and Washington D.C.), also Partner in Omnia Economic Solutions. “The Rossello Administration has taken a more business friendly approach, and through these amendments, are looking to attract all types of investments into the program, including local businesses, and start-ups, not just those with millions of dollars in annual net profit.”
Another amendment includes the elimination of burdensome compliance requirements under Act 22, and replacing them with a system that follows already mandatory Federal residency requirements, which include living in Puerto Rico for 183 days, declaring your residence in the Island, and having a closer connection to it than to your former jurisdiction. In addition to this, all new residents under Act 22 will be required to annually donate $5,000 to the 501(c)3 charity in PR of their choosing.
The passed amendments have received praised from economic development experts, who see this as a step forward in opening these incentives to a wider sector of investors, and the number reflect this.
Interested investors are encouraged to contact Omnia Economic Solutions to see how these incentives could work to their advantage. Omnia Economic Solutions is a full-service economic development firm in Puerto Rico. The full service consultancy firms specializes in turnkey solutions and assisting wealthy investors relocate to Puerto Rico where they can take advantage of its beneficial Act 20 and Act 22 Grants. The firm, which was founded at the beginning of 2013, has over 350 Act 20 & 22 clients.
For more information please visit: http://www.omniaeconomics.com/
Company Name: Omnia Economic Solutions
Contact Person: Roberto A. Corretjer
Email: Send Email
Address:Caribe Plaza Building, Suite 802 53 Palmeras Street
City: SAN JUAN, 00901
Country: Puerto Rico