On April 28, 2020, Governor Wanda Vázquez-Garced signed into law Act No. 47-2020 to expand the existing medical professional incentives to general practitioners, podiatrists, audiologists, chiropractors and optometrists.
Under these incentives, which were originally introduced by Act No. 14-2017 and later codified under the Puerto Rico Incentives Code, Act No. 60-2019, individuals admitted to the practice of medicine, podiatry, audiology, chiropractic care, optometry and odontology, and any resident physician in a duly accredited program (“Qualified Physician”) can enjoy a 4% fixed income tax rate on net income, and a 100% income tax exemption for up to $250,000 of dividends distributed each year from earnings and profits generated by the healthcare services.
To be eligible for the incentives, a Qualified Physician must request and obtain a Tax Exemption Grant (the “Grant”) from the Secretary of the Department of Economic Development and Commerce by filing an application with the Office of Industrial Tax Exemption together with the corresponding filing and processing fees. Please note that the deadline to file the Grant application is June 30, 2020.
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