Act 20 & Act 22 Amendments - July 2017

The government of Ricardo Rosselló continues efforts to increase economic development through Act 20 & Act 22, with new amendments to each law signed into law on July 11, 2017. 

Key changes to Act 20:

  1. Remove the 5 employee requirement*
  2. Include medical tourism as an eligible service
  3. Include telemedecine as an eligible service

*Although the number of employees required for Act 20 is no longer the same across the board, it does not mean that invidual decrees will specify a number of employees. As per the (translated) wording of the amendment: "The Secretary may require as part of the decree, if the business needs employees or independent contractors to carry out their operations, certain numbers of employees or, in the case of independent contractors, such contracts are carried out with persons resident or native of Puerto Rico entities engaged in trade or business in Puerto Rico."

Furthermore, any Act 20 company that has submitted their application or received their decree and has already hired direct employees cannot dimiss them. However, if you already hold your decere and haven't yet hired the previously required number of employees, contact the Department of Economic Development (DDEC) to discuss your specific case and a possible amendment of your decree. As of July 2017 they are not accepting any changes to signed decrees (according to a grantee who contacted them). 

Key changes to Act 22:

  • Eliminate the certificate of compliance, instead simply require the individual to follow the rules of IRS form 8898 to become a bona fide resident of Puerto Rico.
  • Contribute $5,000 per year to local non-profit organizations

If you're looking for a local non-profit to donate or get involved with, the Puerto Rico-based Non-Profit Evaluation & Reseource Center, Inc has compiled this list with contact info. 

 

 

 

19 Jul 2017


By PR Business Link
Advertisement