Partner William L. Blum comments on Recent Puerto Rico Tax Exemption Legislation
The Commonwealth of Puerto Rico enacted exciting new tax incentive laws in 2012. These laws are referred to as Act 20 and Act 22. Act 20 provides a 96% tax exemption for businesses exporting services from Puerto Rico and Act 22 provides “bona fide residents” of Puerto Rico with a 100% exemption from all income taxes, including U.S. federal income taxes, on dividends, interest, and capital gains from Puerto Rico sources. for individuals who are “bona fide residents” of Puerto Rico. Territorial tax expert and Solomon Blum Heymann partner William L. Blum, Esq. explains the details of these new laws and how U.S. citizens may take advantage of these unprecedented tax benefits.