Thinking about moving your business to Puerto Rico? When it comes to navigating the complex world of international tax, it's easy to fall intro traps for the unwary. Working with an experienced Puerto Rico tax consultant can be a game-changer, providing you with invaluable expertise in local and international tax nuances and guidance to optimize your tax strategy. Here are five reasons why you should seriously consider enlisting the services of a Puerto Rico tax consultant during your pre and post-move process:
1. Knowledge and Expertise:
Puerto Rico has its own tax laws, which have changed many times, and are constantly evolving. An experienced tax consultant specializes in tax regulations, staying abreast of the latest developments, and can be very efficient identifying planning opportunities tailored to your needs. Their in-depth knowledge and expertise will help you get the most accurate and up-to-date tax advice.
2. Maximizing tax incentives, deductions and credits:
One of the primary advantages of hiring a tax consultant is their ability to identify tax planning opportunities that you might have overlooked. They are well-versed in the intricacies of tax laws and can help you uncover opportunities to minimize tax implications within the law.
3. Tailored Tax Planning:
Every individual or business has unique personal and business circumstances, goals, and priorities. A tax consultant that takes a personalized approach to understand your specific situation and crafts a customized tax plan that aligns with your objectives will help you make an informed decision about a potential relocation to Puerto Rico.
4. Time and Stress Savings:
Compliance and tax preparation can be time-consuming and stressful, especially if you're unfamiliar with the implications of your move to Puerto Rico. By hiring an experienced tax consultant, you will be able to identify tax planning opportunities, tax implications and other compliance requirements you will have to meet. For instance, the transfer of assets from United States to Puerto Rico (including intangible assets) have outbound tax implications. Providing services between related companies within United States and Puerto Rico generates the need for a transfer pricing study. Further, becoming a bona fide resident of Puerto Rico requires compliance with Section 933 of the US Internal Revenue Code and its regulations. That said, moving to Puerto Rico requires addressing tax matters in multiple jurisdictions, and a tax professional will help you identify such issues, that will ultimately result in time, stress, and $$ savings.
5. Risk Mitigation:
A meticulous approach to tax planning with an experienced tax professional reduces the risk of triggering unwanted tax implications and helps you identify taxes that may be triggered by such a move.
This post is not meant to be tax advice. Rather, our objective is to educate on the importance of making an informed decision while considering a move to Puerto Rico under Act 60-2019, known as the Incentives Code (previously Act 20 and Act 22).
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