Q: My holdings company in the US. Has slowly been purchasing property under different companies established in Wyoming.
If we rent out these properties, firstly do we actually have to setup to do business in PR? Secondly, since all the monies paid to each entity is actually passing on the fees to the holdings company for mgmt. Does it even have to be concerned with setting up in PR since it will not be paying taxes there. We are not looking to skip taxes which some may assume, but our holdings company already pays taxes in our home state. We also have many businesses that do the opposite and reside in Puerto Rico and pay taxes on money made elsewhere.
A: Hello and thank you for using JUSTIA. Yes you will need to set up an account to do business in Puerto Rico with the tax department. You will also need to file yearly tax returns and possible monthly IVU returns depending if you set up a non witholding corporation or not. Any income made in Puerto Rico is taxable in Puerto Rico. However, you may want to consider becoming an Act 20, 21 or 22 company. Please see the following link for more information .http://www.valueaddedpr.com/tax-incentives-puerto-rico-act-20-act-22/
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