Services Eligible for Act 20 Benefits

Act 20 provides tax benefits for services provided from the Commonwealth of Puerto Rico to outside markets. Eligible activities to receive benefits under the Act are services in the following areas:

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• Research and development;

• Advertising and public relations;

• Consulting services, including, but not limited to, economic, scientific, environmental, technological, managerial, marketing, human resources, computer and auditing consulting services;

• Creative industries;

• Production of blueprints, architectural and engineering services, and project management;

• Professional services such as legal, tax and accounting services;

• Centralized management services, including, but not limited to, strategic direction, planning, distribution, logistics and budgetary services carried out by the headquarters or similar regional offices of an entity engaged in rendering such services;

• Centers for electronic data processing;

• Development of licensable computer software;

• Voice and data telecommunications between persons located outside of Puerto Rico;

• Call centers;

• Shared services centers, including, but not limited to, accounting, finance, tax, auditing, marketing, engineering, quality control, human resources, communications, electronic data processing, and other centralized management services;

• Storage and distribution centers;

• Educational and training services;

• Hospital and laboratory services;

• Investment banking and other financial services, including but not limited to, asset management, management of investment alternatives, management of activities related to private capital investment, management of hedge funds and high risk funds, management of pools of capital, management of trusts that serve to turn different types of assets into stocks, and management of escrow accounts;

• Commercial and mercantile distribution of products manufactured in Puerto Rico for jurisdictions outside Puerto Rico;

• Assembly, bottling and packaging operations of products for export;

• Marketing centers;

• Trading companies; and • Any other service designated by the Secretary of the Department of Economic Development and Commerce of the Commonwealth of Puerto Rico
Happy Act 20 Companies
The eligible activity must not have a nexus with Puerto Rico. In other words, the service must not be related to the conduct of a trade, business or other activity within the Commonwealth of Puerto Rico to qualify for the benefits of Act 20. For more information, access the following PDF:

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