Act 60 for Attorneys: Check Your Compliance in Minutes

Act 60 is a tax incentive program in Puerto Rico that can be very beneficial for attorneys. It offers a low 4% tax rate on income from legal services provided to clients outside of Puerto Rico. This means if you have a law practice with clients in the U.S. or other countries, you could save a lot on taxes. But, you have to follow the rules. The main one is that your services have to be considered 'export services,' which means you are doing the work in Puerto Rico for clients who are not in Puerto Rico. Our tool can help you quickly see if your services fit this description.

One of the most important parts of Act 60 is making sure you are sourcing your income correctly. This means you have to prove that you are doing the work in Puerto Rico. For lawyers, this can be tricky if you travel a lot or work with people in other places. You need to keep good records to show where you were when you were working. The IRS is paying close attention to this, so it’s important to get it right. Our tool can help you understand what kind of records you need to keep.

If you want to move to Puerto Rico and take advantage of Act 60, you also need to think about whether you need to be a member of the Puerto Rico bar. If you are giving legal advice to clients in Puerto Rico, you will generally need to be admitted to the local bar. This can be a long process, so it’s something to plan for. If you are only providing services to clients outside of Puerto Rico, you may not need to be a member of the local bar. Our tool can help you understand the rules so you can make the right decision for your practice.