They say that two things in life are unavoidable – death and taxes. While the former is impossible, there are ways to minimize tax debt with the right resources. Tax planners, optimizers, accountants, and lawyers are all there to help individuals minimize, or completely avoid paying taxes in the United States while staying on the right side of the law and avoiding fraud audits.
Graham Michael Byers is among those who wish to help others minimize their tax debt. A successful entrepreneur in his own right, Byers has moved his business operations – and relocated his life – to Puerto Rico to take advantage of Act 60, a Tax Incentive Program that can help businesses and entrepreneurs significantly reduce their tax burden.
Having found the move beneficial, Graham Michael Byers is currently working on a book about how others can make the move to relocate themselves. As a strong proponent of the policies supported by Act 60, and as someone who has fallen in love with Puerto Rico, he is more than willing to get into the details of Act 60.
What is Act 60?
Byers explains that Act 60 was implemented in 2019, and is often known as ‘The Code of Incentives.’ The Act was implemented to regulate the consolidation of, and the building upon the many different tax incentive acts that were already in place, like Acts 20 and 22, for instance. The Act created a more predictable legal landscape that was easier to navigate, with the end goal being to promote job creation, investment, and innovation in Puerto Rico, a designated Targeted Employment Area.
The Act makes Puerto Rico more attractive for investment through various tax incentives. Some might be familiar with the promise of 0% capital gains tax for entrepreneurs who move to Puerto Rico, or the 4% corporate income tax for businesses that make the move.
Who Can Benefit from Act 60?
Act 60 isn’t equally beneficial for everyone, as Byers explains. To get the most out of the Act, entrepreneurs need to be in the right industry, and should ideally be willing to relocate themselves to Puerto Rico, along with their business. The 4% corporate income tax is only offered to companies that are Puerto Rican and that also export services to third-party countries. This model is especially well-suited to online businesses that can employ a local workforce to perform services that are placed on foreign markets.
For a one-person operation, that local workforce can be the entrepreneur themselves, but they need to become a real local. One of the major prerequisites to benefit from the low tax rates is to become a bona fide resident of Puerto Rico. “Bona fide'' means that an entrepreneur will move most of what’s considered to make up their life (place of living, family, possessions) to Puerto Rico. They will then need to start building a life in Puerto Rico, even though they’ll have room to make occasional trips back to the States.
For anyone who’s still on the fence about this type of migration, Graham Michael Byers assures that his personal experience has been great. He hasn’t had to give up on many of the benefits of living in the United States, as any real difference is more than compensated by the difference in tax rates.
|Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.|