Puerto Rico and the Caribbean
Wednesday, July 17-23, 2019 - // no. 012
www.theweeklyjournal.com
GOV. ROSSELLÓ INSISTS HE WILL NOT RESIGN AMID PROTESTS P8 ST. CLAIR CONFIDENT ABOUT INVESTING IN PUERTO RICO P7 BANK CONSOLIDATION BENEFITS CREDIT COOPERATIVES P12
UNDERSTANDING CHANGES TO
ACT 22
The New Incentives Code Includes Amendments Meant To Promote Economic Development in Puerto Rico
I
Cynthia López Cabán
VIBRANT LOCAL CRAFT BEER INDUSTRY P18
clopez@wjournal.com
@cynthia_lope
t does more than organize all tax incentives in one hefty book. The new Incentives Code adopts a standardized legal and administrative framework to evaluate government subsidies intended to foster economic development in Puerto Rico. Some incentives suffered changes like the ones granted under Act 22. When this law was approved in 2012, an entrepreneur could request the exemptions on capital gain taxes and other passive income if he or
she had not lived on the island five years prior to the enactment of the law. As of July 1, 2019, the day governor Ricardo Rosselló signed the measure into law, the period has officially been extended to 10 years. Initially, those wanting to partake of the benefits of Act 22 were also required to purchase a home on the island. Along the way, that requirement got eliminated and investors were only asked to spend at least 183 days a year in Puerto Rico. However, with the new regulatory framework, the requirement was restituted and the new GO TO PAGE 4