THE 20/22 ACT SOCIETY
The 20/22 Act Society is a membership based organization that is comprised of individuals who have moved to Puerto Rico from various places throughout the world, in view of the passage of Acts 20 and 22 of 2012. The Society was formed by Robb Rill, one of the first individuals to relocate to the Island. We provide free guidance to everyone that reaches out with an interest in relocating to Puerto Rico under the aforementioned Acts, to make sure that potential and current recipients of tax exemption decrees granted under the Acts are fully cognizant of their compliance obligations as part of our educational efforts. At the same time, the Society serves as a venue to gather those interested in relocating with those that have already made Puerto Rico their home, as an opportunity for them to share their experiences, clarify their general concerns and be part of a like-minded community.
The ultimate purpose of the Society is to serve as a voice to promote the significant impact that the 20/22 community can have in the Puerto Rico’s nonprofit sector. To achieve this, the 20/22 Act Foundation Inc. was created to support and directly work with local charities in different philanthropic areas regarding but not limited to: animal welfare, children’s, education, elderly care, and homeless areas by allocating monetary contributions collected as part of the educational and social efforts made through the Society. The Foundation is certified as a nonprofit organization under both the Puerto Rico Internal Revenue Code Section 1101.01 and the Federal Internal Revenue Code Section 501(c)(3).
Organizations supported by the Foundation include local charities that fund grants for local students to attend universities who could otherwise not afford to, that outreach and give services to the homeless and the elderly on the Island, that provide computers for children in schools where access is unavailable, and that work on reducing the street dog population and animal abandonment through rescue and low cost spay and neuter campaigns.
ABOUT PUERTO RICO
- Puerto Rico is an unincorporated territory of the United States located in the Caribbean with roughly 3.7 million residents
- Puerto Rico operates under the legal, monetary, and banking systems of the United States
- New residents are protected under U.S. law and a U.S. passport is not required for travel between the U.S. and Puerto Rico
- English and Spanish are the official languages of Puerto Rico
- Currency: U.S. dollar
- GDP: $108.5 Billion
- Puerto Rico is part of U.S. free trade zones and customs system
- Regulated banking system which is also insured by the Federal Deposit Insurance Company (FDIC)
- No federal income tax
- Controlled Foreign Corporation (CFCs) tax treatment, in which federal income taxes are differed until repatriation of profits
- Cost Advantages vs. Continental U.S.
- Legal safeguards and presence of U.S. federal court
- Puerto Rico is under the protection of the Homeland Security Act
- Puerto Rico is under the U.S. legal framework and intellectual property protection
- The Luis Munoz Marin International Airport is the largest and busiest airport in the Caribbean
- There are six regional airports to reach every corner of the islands
- Many major airlines have service to Puerto Rico including American Airlines, Continental, Delta, United, JetBlue, US Airways, Southwest and Virgin Atlantic
- 94% literacy rate
- Highly acclaimed private schools for all levels of education
Following the Spanish-American War, Spain ceded Puerto Rico to the United States under the 1896 Treaty of Paris. At this time, the economy of Puerto Rico heavily relied on its sugar crop. In the middle of the century, free market reforms spread across the island, transforming Puerto Rico into the manufacturing powerhouse and prominent tourist destination that it is today. Recently, the legislature of Puerto Rico sought to add to this legacy through Acts 20, 22, and 273.
New and sweeping changes are taking place in Puerto Rico. Puerto Rico has passed legislation in 2012 to incentivise investors and service providers of all industries to relocate their headquarters to the island. In return for the island’s gained economic growth, these organizations and individuals are allowed new and exciting benefits. These new benefits apply to individuals and organizations who relocate to Puerto Rico and may include significant reductions of income taxes on long-term capital gains, dividends, interest, earnings and profit, and property. These benefits are possible because income generated within Puerto Rico is generally not subject to U.S. federal taxation.
We, the 20/22 Act Society, are excited to share how Puerto Rico’s legislative changes can benefit other service providers and organizations currently based in the U.S. This website will provide general information on the new legislation relating to this opportunity.
In the case of Barron’s article, the way he dismisses the 12,000 direct jobs created so far as a result of Acts 20 and 22 is telling. It ignores the fact that prices are determined at the margins, and 12,000 new jobs is a lot for a tiny island economy like Puerto Rico’s. And that’s not to mention the indirect jobs. Even people who’ve never been to a Cocktails and Compliance gathering—or to Puerto Rico at all—should be able to see this dismissal as bias.