The purpose of Act 60 Export Trade of Goods is to promote the development of new businesses in Puerto Rico
Chapter 3 under the Puerto Rico Incentives Code (Act 60) provides for the Export of Goods. The Export of Goods was not originally provided for under Act No. 20 of January 17, 2012 which established the "Act to Promote the Export of Services" (commonly known as 'Act 20'), but Act 20 was later amended on July 11, 2017 to include specifically 'Export Trading Companies' dedicated to the international trade of 'Goods' for consumption outside of Puerto Rico. Both Export of Services and Export Trade are provided for under separate Sections in Act 60.
The entirety of Act 60 is an economic development program. As with virtually all economic development programs, various tax incentives are used to attract, retain and expand businesses, create jobs, and induce investment into the community the economic development program serves. In this case, the community is the entire Commonwealth of Puerto Rico, a U.S. Territory. These Puerto Rico tax incentives have stimulated the inbound transfer of foreign businesses and investment to Puerto Rico. Many of these businesses are from the U.S. Since 2012 under Act 20, and continuing under Act 60, both Export Services and Export Trade participants have helped to establish Puerto Rico as an international Export Services and Export Trade Hub. Act 60 continues to encourage existing local businesses to expand their services to persons and businesses outside of Puerto Rico, including to the United States.
Below is the description of the Act 60 Export Trade program under each Section as provided by the Puerto Rico Department of Economic Development and Commerce (DEDC) and the PR Incentive Code.
Act 60 Export Trade Overview - Section 2031.02
ELIGIBLE BUSINESS
Section 2031.02 - It shall be deemed to be an Eligible Business for purposes of the benefits provided under this Section, any Person with an office or bona fide establishment located in Puerto Rico who engages or may engage in business as a Trading Company that derives not less than eighty percent (80%) of its gross income from eligible activities.
Piloto151, our preferred co-working facility, qualifies as a 'bona fide' office and establishment for use under Act 60.
EXPORT TRADE - NO NEXUS, NO CONNECTION to PUERTO RICO
Export Trade activities excludes any activity that has a Nexus with Puerto Rico or Connection to Puerto Rico. A Nexus or Connection with Puerto Rico shall be deemed when an Export Trade company has activities associated with the following:
- The sale of any property for use, consumption, or disposition in Puerto Rico; or
- Any other activity, situation, or circumstance related to Puerto Rico that is prescribed in the Incentives Regulations or other determination, administrative decision, or circular letter as having a connection to Puerto Rico.
Act 60 Export Trade Overview - Section 2031.02
ELIGIBLE BUSINESS
Section 2031.02 - It shall be deemed to be an Eligible Business for purposes of the benefits provided under this Section, any Person with an office or bona fide establishment located in Puerto Rico who engages or may engage in business as a Trading Company that derives not less than eighty percent (80%) of its gross income from eligible activities.
Piloto151, our preferred co-working facility, qualifies as a 'bona fide' office and establishment for use under Act 60.
EXPORT TRADE - NO NEXUS, NO CONNECTION to PUERTO RICO
Export Trade activities excludes any activity that has a Nexus with Puerto Rico or Connection to Puerto Rico. A Nexus or Connection with Puerto Rico shall be deemed when an Export Trade company has activities associated with the following:
1. The sale of any property for use, consumption, or disposition in Puerto Rico; or
2. Any other activity, situation, or circumstance related to Puerto Rico that is prescribed in the Incentives Regulations or other determination, administrative decision, or circular letter as having a connection to Puerto Rico.
