The income tax system in Puerto Rico was modeled after the United States Internal Revenue Code of 1954. More than a half century later, Puerto Rico’s tax system took its own direction with substantial tax reform and the approval of the Internal Revenue Code of 2011. The Puerto Rico Department of the Treasury (“Hacienda”), regulates and administers the Internal Revenue of Code 2011, which includes income tax, sales tax, excise tax, estate tax, income and payroll withholding tax, and a variety of licenses and miscellaneous items. There are also other local taxes which are administered by government agencies and municipalities, such as business licenses, property tax and construction excise taxes.
Our tax attorneys offer a careful planning of corporate structure and provide advice on the different tax considerations, alternatives and choices that are indispensable to the success of business operations locally. Puerto Rico also hosts a variety of tax incentives and tax credits that we can negotiate if applicable to your business. CST’s tax attorneys regularly assist clients via an integrated approach which includes tax planning, structuring, compliance, legislation awareness and tax transactional services.
CST’s tax attorneys provide sophisticated advice, tax updates and solutions to your business tax needs. Our seasoned attorneys have a wide range of tax historical knowledge, experiences and viewpoints. Most of them actively participate in tax committees and trade associations to help ensure that our clients are immediately informed of emerging and relevant issues that may have an impact on their business. We also counsel and help our clients in applying and qualifying for local tax exemptions such as the special tax rates afforded to high net-worth individuals that move to Puerto Rico under Act 20, the export of services under Act 22, and the exemptions on manufacturing provided by Act 73.
CST offers its clients comprehensive tax experience, strategic analysis, and innovative solutions in the following areas: Puerto Rico State and Local Taxation (SALT), including Sales and use tax (SUT) to value added tax (VAT) transformation matters, Industrial Tax Exemption, Tax Legislative Services, Tax Exemptions on Exporting Services, Exempt Organizations, Tax Controversies and Transactional Services, Tourism and Hospitality Industry, Internal Revenue Licenses, Film Industry Tax Credits, International Banking Entities, International Insurance Centers, Real Estate Investment Trusts (REIT), Agricultural Incentives Law and Tax Exemption for Hospitals.