Business benefit · Chapter 3
Puerto Rico Act 60 business tax benefit
The export-services benefit can reduce Puerto Rico tax on approved business profit. It does not turn every kind of income into 4% income.
What the 4% rate covers
The rate attaches to income described in the business's tax grant, not to the person or company in the abstract.
Potentially covered
- Net income from an approved export service.
- Services performed through a real Puerto Rico operation.
- Services delivered to customers outside Puerto Rico for use outside Puerto Rico.
Not automatically covered
- Employee wages or salary.
- Income from Puerto Rico customers or Puerto Rico use.
- Investment income, payroll taxes, or unrelated income.
- Any activity outside the exact terms of the grant.
What a qualifying operation needs
- 1
An eligible export service
The application must identify the service, customers, and the way the service is exported from Puerto Rico.
- 2
Real Puerto Rico activity
The work, records, contracts, people, and operations should support the facts presented in the application and annual filings.
- 3
Customers and use outside Puerto Rico
A customer's address alone does not settle sourcing. Confirm where the customer receives and uses the service.
- 4
A valid grant and annual compliance
Keep the grant, returns, annual reports, government charges, municipal obligations, and supporting records current.
One-time setup and annual operations
The calculator separates decree application costs from the operating costs that repeat every year. Planning allowances are editable and are not official government rates or provider quotes.
| Timing | Item | Current model |
|---|---|---|
| One time | Chapter 3 legal planning estimate | $9,000, editable |
| One time | Application filing, affidavits, notary, and portal | $1,280 known |
| One time | Entity formation and accounting setup allowances | $950 editable |
| Annual | Report and portal transaction | $505 known |
| Annual | Business tax compliance allowance | $2,300 editable |
| Annual | Accounting and books | $5,100 editable |
| Annual | Informative returns (Forms 480s) | $50 per form, unpriced until entered |
| Annual | Workers’ compensation return | $500 editable |
| Annual | Quarterly services withholding | $900 editable |
| Annual | Paid payroll service allowance | $1,800 editable |
| Annual | Workspace and LLC fee | $3,750 editable |
Model the business benefit and costs with your own profit, state, planning horizon, and professional quotes.
Set up the company workflow
- 1
Open the operating accounts
Complete the EIN, SURI, permit, municipal, bank, and employer registrations that apply to the entity and location.
- 2
Run paid payroll
Easy Checks lists Puerto Rico payroll processing, tax payments, quarterly reports, year-end forms, and direct deposit. The $1,800 payroll default is an internal estimate. Easy Checks does not publish a dollar price used here. Accounting defaults to the supplied $425 monthly CPA bookkeeping quote ($5,100 a year), not a payroll-provider price.
- 3
Keep separate monthly books
Reconcile the business account, payroll, salary, distributions, income, and expenses. Keep personal activity out of the company books.
- 4
File the annual company set
Confirm the income tax return, municipal license or patent filing, personal property return, Act 60 compliance filing, and LLC fee with the CPA responsible for the entity.
The business grant does not replace residence rules
If the owner expects Puerto Rico residence or federal territory-source treatment to matter, the separate presence, tax-home, closer-connection, and income-source rules still apply. Read the Puerto Rico residence guide. The individual investor benefit is a separate application with separate obligations. The comparison of the business and investor chapters keeps those questions on their own pages.
Primary sources
Law checked through July 16, 2026.