Benefits for Donors under Law 60

Puerto Rico Act 60 (Incentive Code) offers significant benefits to donors, including individuals and entities, by encouraging investment and the export of services. Donors can obtain preferential income tax rates (4%), capital gains exemptions (100% on certain investments), and dividend tax exemptions, maintaining these advantages for 15 to 30 years.

  • Fixed Contribution Rate: A rate of only 4% is applied to net income derived from exported services or eligible businesses.
  • Dividend Exemption: Dividends distributed by the exempt entity to its owners are 100% exempt from income taxes.
  • Incentives for Investors (Former Act 22): Individual donors can receive a total exemption (100%) on long-term capital gains and on interest and dividends, if they qualify as investor residents.
  • Donations and Social Responsibility: The law often requires, within certain decrees, annual donations (e.g., $10,000) to non-profit organizations in Puerto Rico, which benefits local development.
  • Investment Credits: Substantial tax credits can be obtained for investments in tourism or economic development areas.
  • Long-Term Stability: Approved decrees act as a contract that guarantees preferential rates for up to 15 years, extendable, even if the law is amended.

The benefits of Act 60 are available to both local and foreign residents who establish businesses or make eligible investments on the island.

We have the following Certifications

  • United States Department of the Treasury | Internal Revenue Service (IRS)
    Certification of Federal Income Tax Exemption under Section 501(c)(3) of the Internal Revenue Code (IRC).
  • Puerto Rico Department of the Treasury
    Certification of Current Tax Exemption for a Non-Profit Entity, in accordance with the provisions of Section 1101.01 of the Puerto Rico Internal Revenue Code of 2011.
  • Puerto Rico Department of State
    Certificate of Existence as a Domestic Non-Profit Corporation with registration number 378195.