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Puerto Rico has positioned itself as a competitive jurisdiction for private equity funds through Act 60-2019, known as the Puerto Rico Incentives Code (“Incentives Code”). This article provides a high-level overview for fund managers, investors, and advisors of how private equity funds are structured, taxed, and regulated in Puerto Rico, with a focus on preserving tax incentives and mitigating compliance risks.

On March 11, 2026, the Puerto Rico Department of Economic Development and Commerce (“DDEC”) issued Administrative Order No. DDEC 2026‑002 (“Order”) establishing detailed operational, investment, and compliance guidelines for Private Equity Funds operating under Act 60‑2019.

Act 38-2026 (“Act”) was enacted into law, amending several provisions of Act No. 60 of 2019, as amended, known as the Puerto Rico Incentives Code (“Act 60”), applicable to tax benefits granted in a Decree of Tax Exemption (“Decree”) under the resident individual investors program (“Program”). The Act aims to update eligibility rules, preferential tax rates, and extend the 2036 sunset of the benefits to 2055.

A Practical Guide to U.S. Transfer Pricing Rules and Their Application to Intellectual Property Transfers. Intellectual property (“IP”) is a cornerstone of value for many businesses operating in today’s global economy. When companies with related entities in different countries transfer IP, U.S. transfer pricing rules come into play. This article explains the key considerations for U.S. transfer pricing as it relates to intellectual property, offering guidance for business leaders who may be unfamiliar with these rules. Our goal is to clarify the IRS’s approach, the methods for valuing IP, and highlight compliance requirements and potential risks.

Puerto Rico offers various tax exemption grants to eligible entities, providing significant tax advantages and growth opportunities. Knowing the Sales and Use Tax (“SUT”) implications for entities that are beneficiaries of tax exemption grants is crucial for effective planning, establishing goals, and strategies, as well as minimizing the impact on the organization's finances.

Puerto Rico offers various tax exemption grants to eligible entities, providing significant tax advantages and growth opportunities. Knowing the Sales and Use Tax (“SUT”) implications for entities that are beneficiaries of tax exemption grants is crucial for effective planning, establishing goals, and strategies, as well as minimizing the impact on the organization's finances.

Puerto Rico offers various tax exemption grants to eligible entities, providing significant tax advantages and growth opportunities. Knowing the Sales and Use Tax (“SUT”) implications for entities that are beneficiaries of tax exemption grants is crucial for effective planning, establishing goals, and strategies, as well as minimizing the impact on the organization's finances.

In the pursuit of business expansion, businesses have a wide array of options when deciding their approach on how to achieve their goals. Mergers and acquisitions (“M&A”) offer the opportunity to rapidly expand business operations while decreasing the risks associated with starting a new operation or expanding from scratch. However, M&As are not immune to tax implications for the parties involved in the transaction. As such, when considering M&A transactions, it is important to evaluate all of its implications in order to determine which type of deal is right for you. This article provides a summary of important key points that should be pondered when conducting M&A transactions.

For many years, the Puerto Rico Treasury Department (PR Treasury) has been looking for ways to oversee the amount of expenses that entities in Puerto Rico get charged or allocated by related entities outside Puerto Rico. In Puerto Rico, it is very common to have entities operating here as subsidiaries or branches of foreign entities, where the Parent Company or Home Office is in the United States or elsewhere.

Our tax experts discuss when and how Puerto Rico residents need to report their income to the IRS, which forms to use and incentives that may be available to them. Watch the video to learn about federal tax filing

Tax incentives for the film and creative industries in Puerto Rico: exploring the benefits for businesses in the creative sectors. Puerto Rico has been a favorite destination for filmmakers, artists, and creative entrepreneurs, because of its dynamic culture, beautiful scenery and advantageous position. The creative industries serve as an economic embodiment of culture, highlighting Puerto Rico’s exceptional quality of life both locally and internationally. The enactment of Act 60-2019, known as the Puerto Rico Incentives Code, has firmly established the island as a global hub for film production, digital media, and other creative industries. This comprehensive tax incentive law is a game-changer, offering producers, filmmakers, and other creatives significant economic advantages to bring their projects to life.

Did you know that the government of Puerto Rico has implemented various tax breaks and incentives to encourage businesses to go green? These offer a series of financial benefits to businesses that incorporate sustainable and eco-friendly practices into their operations. This article will provide you with knowledge about the incentives and what benefits they offer to businesses.

Choosing the right business structure is one of the most important decisions any entrepreneur or business owner needs to make. This decision will not only affect the daily operations of the business but will also have a direct impact on how income, deductions, and overall tax obligations are treated. In Puerto Rico, the tax laws are unique and while there are similarities with the federal tax regulations in the United States, they have distinctive characteristics that can significantly influence your tax situation.

As the new tax season is starting, we would like to remind you that if you made gifts during 2024, you may be required to report them on a gift tax return. For Puerto Rico purposes, generally, any person who makes a reportable gift over ten thousand dollars ($10,000) per donee must file an Informative Gift Tax Return on or before January 31 of the year following the gift. A three-month automatic extension is available, and if the donor is outside of Puerto Rico, an extension may be granted for up to six months.

This comprehensive tax guide is designed to keep you well-informed about the tax due dates and filing requirements for both Puerto Rico and the United States. It also offers valuable tax insights for businesses, individuals and sales and use tax considerations.

This comprehensive tax guide is designed to keep you well-informed about the tax due dates and filing requirements for both Puerto Rico and the United States. It also offers valuable tax insights for individuals, businesses, and sales and use tax considerations.