Act 22

From the Tax Law Offices of David W. Klasing - The IRS is Targeting Taxpayers (and Their Advisors) that Purported to Have Moved to Puerto Rico to Avoid Cryptocurrency Capital Gains

Retrieved on: 
Tuesday, March 2, 2021
Puerto Rican law, Spanish Empire, Countries, New Spain, PUERTO RICO, Income tax in the United States, Act 22, Tax, Islands, Taxation in Puerto Rico, Political status of Puerto Rico

Taxpayers may face tax civil penalties and potential criminal tax prosecution due to the sketchy tax advice they received.

Key Points: 
  • Taxpayers may face tax civil penalties and potential criminal tax prosecution due to the sketchy tax advice they received.
  • On January 17, 2012, Puerto Rico passed Act 22 of 2012, also referred to as the Individual Investors Act (IIA), in order to enhance the economic situation of Puerto Rico.
  • To be eligible to claim tax exemptions from the IIA on your tax return, you must be a "bona-fide resident" of Puerto Rico.
  • However, as a U.S. person, a taxpayer who lives in Puerto Rico is still subject to federal income tax on income earned from avenues OUTSIDE of Puerto Rico.

Puerto Rico Incentives Code (Act No. 60) Now Officially in Effect

Retrieved on: 
Friday, January 17, 2020
Spanish Empire, Americas, PUERTO RICO, Spanish colonization of the Americas, CARIBBEAN, Act 22, Economy of Puerto Rico

SAN JUAN, Puerto Rico, Jan. 17, 2020 /PRNewswire-PRWeb/ --The former Governor of Puerto Rico, Ricardo Rossell, signed Act 602019, commonly known as the Puerto Rico Incentives Code, into law on July 1, 2019, which came into effect on January 1, 2020.

Key Points: 
  • SAN JUAN, Puerto Rico, Jan. 17, 2020 /PRNewswire-PRWeb/ --The former Governor of Puerto Rico, Ricardo Rossell, signed Act 602019, commonly known as the Puerto Rico Incentives Code, into law on July 1, 2019, which came into effect on January 1, 2020.
  • The Incentives Code consolidates various tax decrees, incentives, subsidies, and benefits, including Act 20, the Promotion of Export Services Act , and Act 22, the Act to Promote the Relocation of Individual Investors to Puerto Rico .
  • Chapter 3 of the Incentives Code, formerly Act 20, governs the exportation of goods and services.
  • Its goal is to enable and empower its clients to make a sound decision about whether Puerto Rico is right for them.

Puerto Rico Incentives Code (Act 60-2019) Signed into Law

Retrieved on: 
Friday, November 8, 2019
Spanish Empire, Puerto Rican law, Americas, PUERTO RICO, Act 22

SAN JUAN, Puerto Rico, Nov. 8, 2019 /PRNewswire-PRWeb/ -- Former Governor of Puerto Rico, Ricardo Rossell, signed Act 602019, commonly known as the Puerto Rico Incentives Code, into law on July 1, 2019, with an effective date of January 1, 2020.

Key Points: 
  • SAN JUAN, Puerto Rico, Nov. 8, 2019 /PRNewswire-PRWeb/ -- Former Governor of Puerto Rico, Ricardo Rossell, signed Act 602019, commonly known as the Puerto Rico Incentives Code, into law on July 1, 2019, with an effective date of January 1, 2020.
  • The Incentives Code consolidates various tax decrees, incentives, subsidies, and benefits, including Act 20, the Promotion of Export Services Act , and Act 22, the Act to Promote the Relocation of Individual Investors to Puerto Rico .
  • While the consolidation of the decrees, incentives , subsidies, and benefits governing taxation in Puerto Rico improves transparency, it introduces more rigid, restrictive, and expensive requirements.
  • Its goal is to enable and empower its clients to make a sound decision about whether Puerto Rico is right for them.