Puerto Rico Tax Incentives for Startups and Freelancers
1–10 of 15 posts
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#2My only gripe when they originally enacted act 20 and 22. Was that it required the founder not to have lived in Puerto Rico in the past 15 years or long period of time before arriving here.
Unless they changed it this would forbid founders that are trying to make a company in Puerto Rico able to qualify.
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#3My only gripe when they originally enacted act 20 and 22. Was that it required the founder not to have lived in Puerto Rico in the past 15 years or long period of time before arriving here. Unless they changed it this would forbid founders that are trying to make a company in Puerto Rico able to qualify.
It seems the requirement has been relaxed a bit:
"Puerto Rico Senate Bill 864 increases the potential impact of Act 22 by expanding who qualifies for the tax break. Prior to this legislation, Act 22 was only applicable to new migrants to Puerto Rico who had not been residents for the 15 year period before the Act went into effect in January 2012. That period has now been reduced from 15 to 6 years."
https://www.forbes.com/sites/janetnovack/2015/01/27/puerto-r...
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#4My only gripe when they originally enacted act 20 and 22. Was that it required the founder not to have lived in Puerto Rico in the past 15 years or long period of time before arriving here. Unless they changed it this would forbid founders that are trying to make a company in Puerto Rico able to qualify.
It seems the requirement has been relaxed a bit: "Puerto Rico Senate Bill 864 increases the potential impact of Act 22 by expanding who qualifies for the tax break. Prior to this legislation, Act 22 was only applicable to new migrants to Puerto Rico who had not been residents for the 15 year period before the Act went into effect in January 2012. That period has now been reduced from 15 to 6 years." https://www.forbe…
I only spent two year outside PR for my bachelors. Been back here for 8 years now. :(
Still feels odd trying to help create startups but excluding people that live here. I mean the original purpose was to bring new companies, "expats" to puerto rico which IMO is good at accomplishing.
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#5Do tax incentives really work over the long term? Some quick searching via Google seem to bring up some negative answers but my search term could be biased ("do tax incentives really work?") and only lead me to answers that backup my question. I'm just curious to know if Tax Incentives actually do work for any city or state. Weren't tax breaks (or the removal of) part of the problem that got P.R. into their current situation?
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#6Do they really believe that our memories are that short? One of the main reasons for the most recent financial crisis in PR was due to section 936 of the US Tax code.
Take a read of the most recent crisis: https://taxfoundation.org/tax-policy-helped-create-puerto-ri...
United States General Accounting Office Report to the Chairman, Committee on Finance, TAX POLICY Puerto Rico and the Section 936 Tax Credit http://www.gao.gov/assets/220/218131.pdf
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#7Do tax incentives really work over the long term? Some quick searching via Google seem to bring up some negative answers but my search term could be biased ("do tax incentives really work?") and only lead me to answers that backup my question. I'm just curious to know if Tax Incentives actually do work for any city or state. Weren't tax breaks (or the removal of) part of the problem that got P.R. into their current s…
What is your definition of "really work"? Georgia started its tax incentives for Film/Television in 2005 and now it's the third largest film/tv industry in the nation behind California and NY. It's also propped up tourist economies as a secondary effect where people want to go to places where things were filmed. Georgia legislators would probably argue that the incentives there work.
[] http://www.adweek.com/tv-video/how-atlanta-became-the-worlds...
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#8Wonderful to see people reinventing taxation from the first principles: "awesome country to live in, with great education and social security, but these are expensive countries, from a Tax perspective"
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#9Do they really believe that our memories are that short? One of the main reasons for the most recent financial crisis in PR was due to section 936 of the US Tax code. Take a read of the most recent crisis: https://taxfoundation.org/tax-policy-helped-create-puerto-ri... United States General Accounting Office Report to the Chairman, Committee on Finance, TAX POLICY Puerto Rico and the Section 936 Tax Credit http://www…
I think the reason wasn't section 936. The reason was more the local government not putting to good use any of the benefits from either the bonds or local companies setting up.
Instead of using those funds to improve education, technical training, create buildings/projects that made sense in the distant future where funds/companies would not be so incentivized to stay here. They went and started building pointless infrastructure projects with arguably benefits or ROI almost always with some sort of controversy on the project builder/developer intentions.
Building statues, pointless sports venues, really expensive projects with zero to marginal benefits to society/Puerto Rico's economy long term.
Re: Puerto Rico Tax Incentives for Startups and Freelancers
#10Do they really believe that our memories are that short? One of the main reasons for the most recent financial crisis in PR was due to section 936 of the US Tax code. Take a read of the most recent crisis: https://taxfoundation.org/tax-policy-helped-create-puerto-ri... United States General Accounting Office Report to the Chairman, Committee on Finance, TAX POLICY Puerto Rico and the Section 936 Tax Credit http://www…
I think the reason wasn't section 936. The reason was more the local government not putting to good use any of the benefits from either the bonds or local companies setting up. Instead of using those funds to improve education, technical training, create buildings/projects that made sense in the distant future where funds/companies would not be so incentivized to stay here. They went and started building pointless in…
Agree that they were not the most prudent financial managers, my point was as soon as they changed the tax code; there was a 10 year window to sunset it and almost all of the companies left which really decimated the economy where jobs just vanished as they were moved back onshore and satellite offices closed.