I’m dashing off this quick update before running to the airport. I’ve just heard that the low tax rates Puerto Rico offers entrepreneurs and investors who move here may go up in 2019.
An amendment has been proposed to:
- Raise the Act 20 corporate rate from 4% to 10%.
- Raise the Act 22 individual capital gains and passive income rate from 0% to 10%.
Those rates are still well below what taxpayers would pay anywhere in the US, but clearly not as good as what’s available now. It’s not certain the measure will pass, but it has already passed the Puerto Rican House and is headed for the Senate. Obviously, “taxing the rich” more would be popular among average voters, so I would not be surprised to see the higher rates become law.
Note that the changes would not affect existing grants.
Still, anyone considering Acts 20 and 22 should act immediately.
I understand that applications approved before the end of the year should be fine. Those submitted before the end of the year may be grandfathered, but no one knows for sure.
If you’ve been thinking about this and are close to a decision, or if you’ve decided to apply but have not yet done so, now is the time to act.
If you need a lawyer who can help get your application in and processed quickly, I can introduce you to the one who did it for me. Send an email to L@LouisJamesLLC.com and I’ll introduce you.
I do not get paid for referrals. It’s in my nature and my interest to help my readers.
Getting more good neighbors is an added plus.
