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Puerto Rico
Overview
Last reviewed - 10 November 2023Puerto Rico, located in the Caribbean Sea, is an archipelago that includes the main island of Puerto Rico and a number of smaller islands. The capital of Puerto Rico is San Juan, the official languages are English and Spanish, and the currency is the United States dollar (USD).
Puerto Rico is a Commonwealth of the United States. Puerto Ricans were granted US citizenship in 1917. In 1952, a constitution was enacted providing for internal self-government.
Puerto Rico has one of the most dynamic economies in the Caribbean region. A diverse industrial sector has far surpassed agriculture as the primary locus of economic activity and income. Encouraged by duty-free access to the United States and by tax incentives, US firms have invested heavily in Puerto Rico since the 1950s. Tourism has traditionally been an important source of income, with estimated arrivals of more than 5.2 million tourists in 2017.
PwC Puerto Rico supports clients with the local knowledge, including tax knowledge, and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. PwC Puerto Rico serves a variety of industries, including manufacturing, pharmaceutical, technology, professional services, retail, insurance, and communications, among others.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
37.5 (i.e. 18.5% + 19% surtax on income over USD 275,000). |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Regular Corporation - By the 15th day of the fourth month following the close of its tax year. Exempt Business - By the 15th day of the sixth month following the close of its tax year. Pass-through Entity - By the last day of the third month following the close of its tax year. |
| CIT final payment due date |
Regular Corporation - By the 15th day of the fourth month following the close of its tax year. Exempt Business - By the 15th day of the sixth month following the close of its tax year. Pass-through Entity - By the last day of the third month following the close of its tax year. |
| CIT estimated payment due dates |
Regular Corporation - Equal instalments on the 15th day of the fourth, sixth, ninth, and 12th month of the taxable year of the corporation. Exempt Business - The first and second instalments can be paid jointly on the 15th day of the sixth month of the taxable year of the corporation. Pass-through Entity- Equal instalments on the 15th day of the fourth, sixth, ninth, and 12th month of the taxable year of the corporation. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
33, plus 5% gradual adjustment tax |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
15 April |
| PIT final payment due date |
15 April |
| PIT estimated payment due dates |
Quarterly (15 April, 15 June, 15 September, and 15 January) |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
Sales and use tax: 11.5% for tangible personal property and certain services; 4% for business-to-business services and designated services. |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: NA; Non-resident: 15 (individual) or 10 (corporation) / 29 / 29 |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
20 |
| Headline individual capital gains tax rate (%) |
15. 25 for non-resident foreign nationals |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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