Taxation Economy of Puerto Rico
taxation highly complex due lack of uniformity in local internal revenue code , disparate amount of incentives, subsidies, tax exemptions, tax breaks, , tax deductions.. example, ordinary retail sale might have pay: import taxes, sales taxes, property taxes, corporate net income taxes, national taxes, excise taxes, , sin taxes depending on item being sold. regardless of this, american citizens reside in puerto rico not pay federal income taxes unless work federal government, business federal government, or send funds united states. peculiarity has been taken advantage local government offers plethora of tax exemptions , tax benefits high-net-worth individuals relocate island. these benefits have been ratified law through act 20 of 2012, act 22 of 2012, , act 273 of 2012. these acts, business owners residing on island might exempt paying local , federal taxes @ all, depending on line of business. on november 15, 2006, government implemented 5.5% sales tax. optional 1-1.5% municipal tax