Although the Exportation Act was created for foreign businesses, down the road, the Puerto Rican government noticed the opportunity for local entrepreneurs to be part of the Exportation Act benefits; therefore, expanding the grant to the local community offers even more opportunities for growth to a collapsing economy.
The Exportation Act is a shift on mentality
Without external resources or big corporations, we need to build our own market. Local investors have the outstanding opportunity to enhance their portfolios. For the aspiring entrepreneurs, this is the chance to build a business from the bottom with a tax rate that guarantees savings.
For some Puerto Rican business owners the idea of exporting their services or goods was never part of the plan, but not because they lacked ambition. Mainly, the turnover risks and additional costs were not within their reach. By allowing local businesses to benefit from a tax rate as low as 4%, we are pushing the economy to a whole new level and offering a powerful reason to stay in the island.
The financial crisis has been an inevitable propeller for Puerto Ricans to start over, some of them even switching careers and coming back to the island to start a business under Act 20. This is the moment to assure that the next generations have a solid financial future.
How this will help
Because, in plain words this is how the economy will be turned around. No matter from where you look at the numbers, the government ran out of money. The next step is to create opportunities rather than to rely on what was lost. The exportation of services and goods offers the chance to push the Puerto Rican people to fight for an economical autonomy, one that promises to be an exciting one.