Act 20

ACT 20
TITLE 13 L.P.R.A.: CONTRIBUTIONS AND FINANCES

Export of Services
Law NO. 20 of 17 of Jan 2012,
Provided in 2012, establishing the “Law to Promote the Export of Service”, with the concept of developing Puerto Rico as a center of international services, also engage the Island with professionals and attract foreign capital, thereby propulse economic and social improvement in Puerto Rico.The act offers tax exemption and tax credits for businesses established in Puerto Rico, which export their services, and are eligible under the act 20 provisions. To avail from these benefits, a business should become an exempt business by applying for a tax concession and obtaining a exemption decree. As part of our service we can offer this decree, moreover compliance with IRS.Eligible services for exportation

  • Research and development;
  • Advertising and public relations;
  • Consulting services, including, but not limited to, economic, scientific, environmental, technological, managerial, marketing, human resources, computer and auditing consulting services; Advisement on matters of any industry or business;image3
  • Creative industries defined as any business with the potential to create jobs and income, principally on exportation of good and services in the following sectors: Design (graphic, industrial, fashion, interior) Art (music,visual art, performing arts, publications) Media (app development, video games, online media, digital content and multimedia) Creative Services (architecture and creative education);
  • Production of blueprints, architectural and engineering services, and project management;
  • Professional services such as legal, tax and accounting services;
  • Centralized management services, including, but not limited to, strategic direction, planning, distribution, logistics and budgetary services carried out by the headquarters or similar regional offices of an entity engaged in rendering such services;
  • Centers for electronic data processing;
  • Development of computer software;
  • Voice and data telecommunications between persons located outside of Puerto Rico;
  • Call centers;
  • Shared services centers, including, but not limited to, accounting, finance, tax, auditing, marketing,                  engineering, quality control, human resources, communications, electronic data processing, and other             centralized management services;
  • Storage and distribution centers of businesses dedicated to transportation of products and articles                     pertaining to third parties, also known as hubs;
  • Educational and training services;
  • Hospital and laboratory services;
  • Investment banking and other financial services, including but not limited to, asset management, management of investment alternatives, management of activities related to private capital investment, management of hedge funds and high risk funds, management of pools of capital, management of trusts that serve to turn different types of assets into stocks, and management of escrow accounts;
  • Commercial and mercantile distribution of products manufactured in Puerto Rico for jurisdictions outside Puerto Rico;
  • Assembly, bottling and packaging operations of products for export;
  • Marketing centers;
  •  Trading companies; and Any other service designated by the Secretary of the Department of Economic Development and Commerce of Puerto Rico.

 

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