Thursday, March 27, 2014

PUERTO RICO, USA : "THE IRS OFFSHORE TAX HAVEN IN THE CARIBBEAN

Puerto Rico, USA, the place for billionaires to live without paying taxes to anyone !! ... 
  • A place where it's US citizens cannot vote for the President and have no representation in Congress; 
  • A place where only the middle class pay taxes; 
  • A place where the US taxpayer sends federal aid but gets scammed by a massive multinational corporate and individual tax evasion; 
  • A place where the island is coded as a foreign country by the IRS for tax puposes; 
  • A place where the economy is bankrupt; unemployment is at 17%; 
  • A place where 1000 families, who can't live in Puerto Rico, are leaving weekly to live in one of the 50 states.mj


(Aquí tienen un ejemplo del daño que le hizo Fortuño a la estadidad para Puerto Rico - la Ley 22 de 2012 que ahora usa Bacó para promover a PR como un paraíso para los billonarios de Wall Street, donde no tienen que pagar contribuciones federal si viven mas de 183 días al año. Y los estadistas se preguntan por qué la mayoría de los miembros en el Congreso no apoyan el Proyecto de Pierluisi - le ven la costura a los Comisionados Residentes estadistas que no quieren incorporar a Puerto Rico al sistema federal contributivo. mj)

PR investment summit on the horizon
CARIBBEAN BUSINESS

Big-time investors, business executives, economic development officials and tax experts are gearing up for the Puerto Rico Investment Summit scheduled for next month.

The two-day conference (April 24-25) held in collaboration with the Puerto Rico’s Department of Economic Development & Commerce of and Paulson & Co. will focus on Puerto Rico as a business and investment destination. Summit attendees will be be able to learn about Puerto Rico’s competitive advantages directly from tax experts, CPAs and government officials, and share experiences from a group of successful early adopters, that are now part of the island’s community.

Keynote speakers include hedge fund billionaire John Paulson, the CEO of Paulson & Co. who has already bet big on Puerto Rico through his acquisition of three oceanfront luxury resorts and has signaled that more investments are in the works. Also slated to speak is investor Nicholas Prouty, president of Putnam Bridge Funding, which is spending $450 million to overhaul its Puerto del Rey Marina complex in Fajardo and spending hundreds of millions more at its La Ciudadela housing and commercial complex in Santurce, a project that includes plans to create a sprawling public park in the historic heart of San Juan.

Popular Inc. Chairman & CEO Richard Carrión, who heads the biggest bank in Puerto Rico and the 36th largest in the U.S. by assets, will also be a featured speaker. Economic Development & Commerce Secretary Aleberto Bacó Bagué will deliver the opening address at the plush Vanderbilt Hotel in the heart of the Condado tourism district. The elegant property is half of the so-called Condado Duo acquired by Paulson this month in a $260 million deal that also included the nearby La Concha Resort.

The second day of the conference will move to the St. Regis Bahia Beach Resort in the northeast coastal town of Río Grande. Paulson’s purchase of a majority stake in that lush property last year marked his first major investment on the island. The two-day conference will include in-depth discussions of Puerto Rico’s unique laws aimed at luring high-end investors to the island.

The lures are included in legislation passed by the previous Fortuño administration in January 2012 that are starting to pay off under an aggressive push by the current administration of Gov. Alejandro García Padilla.

Law No. 22 of 2012, also known as the Individual Investors Incentives Act (Law 22), provides tax exemptions to eligible individuals residing in Puerto Rico, and may have profound implications for the continued economic recovery of the island. To avail themselves of such benefits, individual investors need to become residents of Puerto Rico and apply for a tax-exemption decree, which has generated interest from many investors as well as criticism from detractors.

Law 22 is designed to primarily attract to Puerto Rico high-net-worth individuals, empty nesters, retirees who currently relocate to other states and individual investors from the U.S. and other countries, by eliminating all taxes on passive income that accrues after they relocate to the island. While dividends and interest income earned by Puerto Rico residents on U.S. securities are generally taxed by the federal government, capital gains taxes on their sales are based on residence.

Another lure, Law 20, aims to promote the export of services from the island, while also attracting professionals to the territory by reducing the corporate tax rate to 4% on service export revenue. Both of these laws were signed by Fortuño in early 2012, but hadn’t yet been aggressively marketed and promoted until the new García Padilla administration and Bacó started doing so after taking office in January 2013.

Puerto Rico is particularly attractive to wealthy investors residing stateside. U.S.-based millionaires and billionaires who move to the island would avoid taxation on the sale of securities, which are normally taxed federally at a 23.8% rate. The Puerto Rico program has an advantage over foreign jurisdictions because investors don’t have to renounce their citizenship to take advantage of the tax-shelter offer. Wealthy taxpayers who opt to re-establish overseas to a foreign country have to surrender their U.S. passports and pay an exit tax of 23.8% on unrealized capital gains.

Full schedule and details on the Puerto Rico Investment Summit: www.cb.pr/pdfs/Schedule_PR_Investment_Summit_final.pdf