Compliance

Notice Regarding the Corporate Transparency Act

Navigating Corporate Transparency Acts: Compliance in Puerto Rico and the United States

The landscape of corporate transparency has undergone a significant transformation with the enactment of the Corporate Transparency Act (CTA) in the United States on January 1, 2024. This federal law mandates certain companies to furnish detailed information to the United States Department of the Treasury, emphasizing individuals who wield ultimate control over the entity, either …

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Navigating Compensation Regulations for Entities in Puerto Rico: A Brief Guide

In the vibrant business landscape of Puerto Rico, entities, encompassing corporations and partnerships, operate within a framework of specific tax regulations that shape various aspects of their financial structure. One crucial facet that business owners and stakeholders need to navigate is the concept of “reasonable compensation” for members and shareholders. Understanding Reasonable Compensation While there …

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“Essential Documentation for Claiming the Child Tax Credit: A Guide for Puerto Rico Residents”

When tax season arrives, it’s crucial for residents of Puerto Rico to be well-prepared and informed about the necessary documentation before filling out their Federal tax returns, particularly when claiming the child tax credit. In this article, we will guide you through the important documents and steps to ensure a smooth and error-free tax filing process.

Home-Office Tax Strategy Guide: A Step-by-Step Plan for Maximizing Your Tax Benefits

Working from a home office has become increasingly common, with remote work arrangements on the rise. Whether you’re a full-time remote worker, a freelancer, or a small business owner, your home office can provide significant tax benefits. In this comprehensive step-by-step guide, we’ll walk you through the process of maximizing your tax benefits while staying compliant with tax laws.

The Benefits and Considerations of Putting Your Children on the Payroll

Hiring your children and putting them on the payroll can be a strategic and financially savvy move, provided it’s done legally and for legitimate work. This practice offers several advantages for both parents and their children, ranging from tax benefits to valuable life lessons. In this article, we explore the benefits and key considerations of …

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Strategies to Offset Earned Income and Reduce Your Tax Liability

Earned income, which includes wages, salaries, and self-employment income, is subject to taxation. However, there are numerous strategies, deductions, and tax credits available to help you offset earned income and reduce your overall tax liability. In this article, we’ll explore a variety of methods to optimize your tax situation and keep more of your hard-earned money.

Puerto Rican residents to report their Foreign Financial Accounts (“FFA”)

The Law 52-2022 added Section 1061.25 to the Puerto Rico Internal Revenue Code of 2011, as amended (“Code”), to require all Puerto Rican residents to report their Foreign Financial Accounts (“FFA”) in which they have a financial interest. This requirement became effective starting in the tax year 2022. The Puerto Rico Department of Treasury (“Department”) …

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New registration requirement for all existing and new entities

The Corporate Transparency Act (CTA) became federal law in the United States on January 1, 2024. This legislation requires certain companies to provide detailed information to the United States Department of the Treasury about individuals who hold ultimate control over the entity, whether directly or indirectly. The CTA has a clear purpose: to combat practices …

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Best practices to comply with the presence test

Here are some best practices to comply with the presence test: If you follow these best practices, you will be more likely to meet the presence test and be considered a resident of the state or territory where you want to live. Here are some additional tips: If you are considering relocating to Puerto Rico, …

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Act 60 for Export Services & Commerce and for Individual Investors (formerly Acts 20/22)

We have a strong practice in Act 60 for Export Services & Commerce and for Individual Investors (formerly Acts 20/22). We counsel and advise clients who are seeking to relocate to Puerto Rico to benefit from these tax incentives. Act 60 is a law that provides tax benefits for businesses and individuals who relocate to …

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