By The Star Staff
In the previous two years, 1,023 young entrepreneurs between the ages of 16 and 35 received tax exemption decrees under Law 60, reaching a historic approval figure in 2023, an increase of 61% compared to the previous record established in 2022, Economic Development and Commerce (DDEC) Secretary Manuel Cidre Miranda said Tuesday.
The young people were approved in decrees valid for three years, consisting of a 100% tax exemption on the first $500,000 of the new business’ net income and a 100% exemption on personal property and municipal taxes.
Law 60 offers substantial advantages to young entrepreneurs, Cidre Miranda said. The benefits are designed to empower young people to enter the island economy, equipping them with the necessary tools to propel their businesses forward.
“There are poorly informed people who repeat that the tax benefits are obtained mostly by foreigners, who are also necessary and welcome on our island, but that is not the reality,” the DDEC secretary said. “Of 21,830 decrees approved under Law 60 and previous incentive laws from 1998 to date, 12,011 correspond to Puerto Rican individuals or companies, according to the applications. That is, in 55% of the decrees granted, their recipients are local. Here the manufacturing sector stands out, where 75% of the decrees correspond to businessmen on the island.”
Carlos Fontán, director of the Business Incentives Office in Puerto Rico, highlighted the wide range of professionals and industries benefiting from the decrees. They include lawyers, accountants, engineers, restaurant owners, laboratory operators, beauty salon owners, clothing and accessories store owners, consultants, financial and marketing advisers, and application developers, among others.
From 2022 to this year, 919 decrees have been approved for bonafide farmers who have established companies in sectors such as animal husbandry, seed cultivation, fruit and vegetable farming, dairy production and flower production, among others.
The chapter of Law 60 on bonafide farmers provides greater tax benefits compared to other incentive programs of the aforementioned law. Bonafide farmers enjoy 15-year decrees with 90% exemption on income taxes, 90% exemption on municipal taxes and 100% exemption on property taxes, taxes on raw materials, and taxes on machinery and equipment, among others.