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Impostos a Puerto Rico

Tax Rates

Consumption Taxes

Nature of the Tax
Sales and Use Tax (SUT)
Tax Rate
11.5% (10.5% plus 1% municipal tax)
Reduced Tax Rate
Certain goods and services are exempted from the consumption tax, such as food products, funeral services of up to USD 4,000, prescribed medication, medical machinery and equipment, healthcare services, education, advertisement services, insurance and other professional services, books, tuition and monthly charges paid to licensed childcare centers, certain products for feminine personal hygiene, etc.
Certain professional services for professionals whose annual volume of business does not exceed USD 300,000 (legal; agronomist; architects and landscape architects, certified public accountants, brokers, sellers and real estate companies; professional draftsmen; professional real estate appraisers; geologists; engineers and surveyors; and services rendered by a “tax returns, statements or refund claims specialist”) and B2B services are taxed at a 4% SUT reduced rate.
Prepared foods, carbonated drinks and confectionery products are subject to a special rate of 7%.
Other Consumption Taxes
Excise duties are levied on certain products such as cement, cigarettes, diesel fuel and other petroleum products, plastic products, sugar, vehicles and gains from horse racing.

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Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
A domestic corporation is taxable in Puerto Rico on its worldwide income. A foreign company engaged in trade or business in Puerto Rico is taxed at the standard corporate tax rates on income sourced in Puerto Rico that is considered an effectively connected income. Income that is not effectively connected, fixed or determinable, annual or periodical, derived from Puerto Rican sources by non-resident alien companies and partnerships is generally taxed at a rate of 29%. Furthermore, branches of foreign corporations operating in Puerto Rico may be subject to a 10% tax on the dividend equivalent amount.
A company is resident in Puerto Rico if it is created or organized in Puerto Rico or if it is engaged in a trade or business in the country.
Capital Gains Taxation
The capital gains tax is generally levied at a fixed rate of 20% instead of the standard corporate tax rate.
Main Allowable Deductions and Tax Credits
Deductions and credits are available for job creation; energy costs; research and development; investments in infrastructure, machinery and equipment, purchase of locally manufactured products, export services, charitable contributions (capped at 10% of net income); operational losses and bad debts, depreciation, start-up expenses (deducted in the tax year in which the trade or business begins or rateably amortised over five years), insurance premiums and business expense. Goodwill is generally capitalised and amortised over 15 years. Interest expense is deductible (if paid to a non-Puerto Rico resident related party, a 29% withholding at source applies). The rent of a property used in the business is also deductible. Meals and entertainment are deductible up to 75%, travelling expenses up to 50%. Automobiles used for business can be depreciated over a five-year useful life (three years in the case of salespersons), capped at USD 30,000 for a maximum annual depreciation of USD 6,000.
Taxes may be deductible (except for corporate income tax).
Net operating losses may be carried forward for 10 taxable years (12 years for losses generated from taxable years beginning prior to 31 December 2012). In both cases, the deduction is limited to 80% of the taxable income of the year (90% for losses incurred after 31 December 2018). Losses realized during the 2020 fiscal year can be carried back for 2 years, first against the 2018 taxable year and any remaining amounts against the 2019 taxable year (limited to USD 200,000, with a refund of up to USD 50,000). Such measure does not apply to taxpayers with gross revenues above USD 10 million nor to large taxpayers (COVID-19-related measure).

A corporation subject to the alternative minimum tax is not allowed to claim the same deductions it claimed for regular income tax purposes.

Other Corporate Taxes
Other taxes include: special excise tax; municipal tax on licenses (minimum 0.2%, generally at 0.5% on the gross receipts of a business); property tax (generally from 8.03% to 11.83% of the 1958 market value of real property); federal insurance contribution tax (FICA, 7.65% of salaries, which consists of 6.2% of Social Security and 1.45% of Medicare Tax, calculated on the first USD 147,000 of wages for 2022); federal unemployment tax (FUTA, 6% on the first USD 7,000 of total wages paid during the calendar year to each employee, with a credit of 5.4% granted for the Puerto Rico unemployment tax paid); state unemployment tax (SUTA, paid on the first USD 7,000 of total wages paid to each employee during the calendar year, plus a special tax equal to 1% of the wages subject to unemployment tax); workmen’s accident compensation insurance (based on total wages paid during the fiscal year); disability insurance (0.3% on the first USD 9,000 of the total wages paid in the year is paid by the employer); social security contributions for drivers (USD 0.30 per week or fraction thereof). Furthermore, entities organized as corporations must submit a balance sheet annual report with a filing fee of USD 150.
Other Domestic Resources
Puerto Rico Treasury Department (PRTD)
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Puerto Rico Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 16.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 218.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 64.4 46.8 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Individual Income Tax Progressive rate from 7% to 33%
Not over USD 9,000 0%
Over USD 9,000, but not over 25,000 7% of the excess over USD 9,000
Over USD 25,000, but not over 41,500 USD 1,120 plus 14% of the excess over USD 25,000
Over USD 41,500, but not over 61,500 USD 3,430 plus 25% of the excess over USD 41,500
Over USD 61,500 USD 8,430 plus 33% of the excess over USD 61,500
Gradual adjustment tax (for income over USD 500,000) 5% of the excess of the total net taxable income over USD 500,000 (limited to 33% of their personal and dependents' exemption plus USD 8,895)
Alternate basic tax (ABT) In addition to the regular income tax, individuals are required to compute an ABT. The ABT taxable income is computed by adding back certain income items exempt from regular income tax.
Over USD 25,000 but not over 50,000 1%
Over USD 50,000 but not over 75,000 3%
Over USD 75,000 but not over 150,000 5%
Over USD 150,000 but not over 250,000 10%
Over USD 250,000 24%
Optional tax regime for self-employed individuals rendering services Progressive rate from 6% to 20%
Up to USD 100,000 6%
USD 100,000 - 200,000 10%
USD 200,000 - 300,000 13%
USD 300,000 - 400,000 15%
USD 400,000 - 500,000 17%
Over USD 500,000 20%
Allowable Deductions and Tax Credits
Personal deductions are allowed for Puerto Rican residents and non-resident U.S. citizens, including certain charitable contributions (subject to 50% of adjusted gross income), education expenses, medical expenses (in excess of 6% of adjusted gross income), mortgages interests (capped at USD 35,000 or 30% of adjusted gross income), retirement plans (limited to USD 5,000 per individual), etc.
Furthermore, personal exemptions apply: USD 3,500 per individual and USD 7,000 for married taxpayers living together and filing jointly; USD 2,500 per dependant; USD 1,500 for veterans; etc. Puerto Rican non-resident foreign nationals are not allowed any exemptions.
Losses carryover for individuals with a net loss in a trade or business for three consecutive taxable years is allowed at 100%; whereas the carryforward is limited to 90% of the net income.
Special Expatriate Tax Regime
Puerto Rican residents are taxed in Puerto Rico on their worldwide income. Non-residents are only taxed on their Puerto Rican source income.
Income from personal services performed within the country will not be considered from Puerto Rican sources if it is USD 3,000 or less and the individual was present in Puerto Rico for 90 days or less during the calendar year.
An individual is considered resident if he/she is domiciled in Puerto Rico. Puerto Rican non-resident foreign nationals may not claim deductions.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Puerto Rico did not sign any treaty against double taxation with other countries
Withholding Taxes
Dividends: 0 (resident companies)/10% (non-resident companies)/15% (individuals); Interest: 0/29% (interest paid to non-resident related entities not engaged in a trade or business in Puerto Rico); Royalties: 0 (residents)/29% (non-residents)

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Actualitzacions: May 2024

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