ACT 60
Act 60 of 2019, also known as the “Code of Incentives”, became a law on July 1, 2019, to gather and measure the return on investment of the Puerto Rico tax incentives acts available currently, including Acts 20 and 22 of 2012. Although it brought various changes to these Acts, applicants have the option of applying and be grandfathered under Acts 20 and 22 if they apply by December 31, 2019. Therefore, applications after January 1, 2020, will be fully subject to the provisions of Act 60 of 2019.
Main changes brought by Act 60 of 2019, also known as the Code of Incentives, to Acts 20 and 22 of 2012:
Main changes to Act 20 of 2012:
| Act 20 | New Code of Incentives (Act 60) |
| 60% exemption on municipal license taxes | 50% exemption on municipal license taxes. |
| 90% exemption on real and personal property taxes on property used in the Act 20 business | 75% exemption on real and personal property taxes on property used for the export, promotion, and or trade services. |
| No employee requirement | One (1) employee required if the company’s projected or actual volume of business exceeds three million ($3,000,000) |
| 20-year decree term, renewable for 10 years | 15-year decree term, renewable for 15 years. |
Main changes to Act 22 of 2012: