Question 1

Do residents of Puerto Rico pay federal income tax?

Accepted Answer

Bona fide residents of Puerto Rico generally do not pay U.S. federal income tax on income sourced within Puerto Rico, but they do pay Puerto Rico income tax to Hacienda. Income from outside Puerto Rico and certain federal obligations may still apply, so professional advice is recommended.

Question 2

How can a tax attorney help with a dispute with Hacienda?

Accepted Answer

A tax attorney can respond to audits and deficiency notices, negotiate payment plans, request administrative reviews, and represent you in tax appeals or court. They can also help correct filings and reduce penalties when handled promptly and correctly.

Question 3

What taxes apply to businesses operating in Puerto Rico?

Accepted Answer

Businesses in Puerto Rico may be subject to corporate income tax, the sales and use tax (IVU), municipal license taxes (patente municipal), and property taxes through CRIM. The exact obligations depend on the entity type and activity, and certain incentives may reduce the burden.

Tax Law Lawyers in Puerto Rico

Frequently Asked Questions — Tax Law

Frequently Asked Questions

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