Practice Group Members
Taxes & Incentives Law
+(1) 787-751-8999
Taxes & Incentives Law
Our firm is dedicated to providing comprehensive legal services in the areas of taxation and government incentives. Our experienced attorneys specialize in navigating complex federal and state tax laws and regulations, ensuring that clients maximize their financial benefits while minimizing liabilities. We offer strategic advice on tax planning, compliance, and dispute resolution, as well as in-depth expertise in securing government incentives such as tax credits, grants, and other economic development programs.
We guide clients through the process of structuring their business operations to take advantage of available incentives, from local Puerto Rican tax incentives to federal programs designed to encourage investment, job creation, and economic growth. Our attorneys are also experienced in international tax matters, helping clients manage cross-border transactions, optimize tax structures, and comply with global tax regulations.
Additionally, we provide robust representation in tax audits, litigation, and appeals, ensuring that clients’ interests are protected in front of tax authorities or in court. We help clients navigate transfer pricing rules, sales and use tax issues, and other complex tax challenges.
Whether you are an individual taxpayer or a large corporation seeking to leverage available incentives for growth, expansion, or operational efficiency, we offer personalized solutions that align with your business goals. By combining deep knowledge of both tax laws and business operations, we help our clients optimize financial performance, minimize risks, and achieve long-term success.
Administrative Agency Proceedings
Our firm represents clients in administrative agency proceedings related to tax matters before key bodies such as the Puerto Rico Treasury Department (Departamento de Hacienda). We provide comprehensive support in navigating tax audits, compliance issues, and disputes involving tax assessments, exemptions, and penalties. Our attorneys work closely with clients to ensure proper documentation, prepare necessary submissions, and advocate for favorable outcomes in front of tax authorities.
We handle a wide range of tax-related administrative matters, including but not limited to sales and use tax disputes, income tax assessments, property tax matters, and controversies regarding tax credits and exemptions. Whether defending clients against improper assessments or negotiating settlements, our goal is to protect our clients’ rights and minimize their tax liabilities.
Additionally, our firm is skilled in managing appeals and ensuring that clients are fully informed of their options throughout the administrative process. We also provide strategic advice on maintaining tax compliance to prevent future disputes, including ongoing monitoring of regulatory changes and tax law developments that may affect our clients’ business operations.
Whether resolving disputes or providing proactive tax planning advice, we are dedicated to helping clients navigate the complexities of tax regulations and protecting their interests in administrative proceedings.
Banking and Financial Services
We advise financial institutions on the tax implications affecting their operations in Puerto Rico, helping them navigate the complexities of local and federal tax regulations. Our services include providing strategic guidance on tax compliance, structuring transactions to minimize tax liabilities, and leveraging specific incentives available to financial services companies, such as tax credits, exemptions, or special economic zones.
Our firm is well-versed in advising banks, investment firms, insurance companies, and fintech businesses on the tax aspects of their operations, from cross-border transactions to domestic regulatory frameworks. We help our clients manage risks associated with taxation on financial products, structuring mergers and acquisitions, and addressing complex issues such as transfer pricing, withholding taxes, and tax-efficient capital structuring.
We also support clients in identifying and taking advantage of relevant tax incentives available to the financial sector, assisting with navigating emerging opportunities like those in the fintech industry. Our approach is proactive, ensuring that our clients are informed of regulatory changes and tax developments that could impact on their business strategies, ensuring long-term compliance and financial success.
Whether you’re looking to minimize tax exposure, streamline transactions, or better understand evolving regulations, our firm offers tailored solutions that optimize the financial performance of financial institutions operating in Puerto Rico.
Energy
Our firm provides specialized advice to energy companies operating in Puerto Rico, with a focus on helping them navigate the evolving regulatory and tax landscape of the energy sector. We guide clients through available tax incentives and credits that support renewable energy projects, energy efficiency initiatives, and infrastructure development. Our firm works closely with energy companies—whether involved in solar, wind, or energy storage technologies—to ensure they can capitalize on beneficial taxation policies and maximize financial incentives aimed at promoting sustainable energy solutions.
Beyond tax planning, we assist energy businesses with compliance to local and federal energy regulations, environmental laws, and industry standards. We help clients navigate permitting processes, negotiate power purchase agreements, and address issues related to land use and environmental impact assessments. Our comprehensive approach ensures that clients meet all regulatory requirements while optimizing operational performance.
We also provide strategic guidance on structuring public-private partnerships, joint ventures, and financing arrangements for energy projects. By leveraging our deep knowledge of both the energy sector and Puerto Rico’s legal and regulatory environment, we help clients advance their business objectives and ensure long-term success in a rapidly changing energy market.
Whether you are launching a new renewable energy project, seeking to take advantage of tax credits, or navigating complex compliance issues, our firm offers tailored solutions that support your business at every stage.
Estates and Inheritance Matters
We assist individuals and families with strategic planning for wealth transfer while minimizing tax liabilities associated with estates and inheritance matters in Puerto Rico. Our firm provides comprehensive guidance on wills, trusts, and estate planning strategies, ensuring that clients’ assets are protected, transferred according to their wishes, and handled in the most tax-efficient manner possible. We advise on both local estate tax laws (e.g., Act 201 of 2004) and federal tax laws (e.g., estate taxes under Section 2001 of the Internal Revenue Code), helping clients navigate the complexities of these regulations to reduce the financial burden on heirs and beneficiaries.
Our services also extend to estate administration, assisting executors and beneficiaries with the probate process, managing the distribution of assets, and resolving disputes that may arise during the process. We work with clients to structure their estates in a way that protects their wealth for future generations, including setting up family trusts, charitable giving strategies, and succession planning for family-owned businesses.
In addition, we offer counsel on guardianships, powers of attorney, and healthcare directives, ensuring that our clients’ personal and financial decisions are well-managed in the event of incapacity. For clients with international assets or cross-border considerations, we provide advice on coordinating estate planning strategies across multiple jurisdictions, helping to manage potential conflicts and tax implications.
Whether you are looking to create a comprehensive estate plan, resolve disputes, or navigate the probate process, our attorneys provide tailored solutions to meet your unique needs and protect your legacy.
Government Affairs & Public Policy
Our firm focuses on advocating favorable legislation and regulatory policies that impact taxes and fiscal matters in Puerto Rico. We work closely with clients to develop targeted advocacy strategies that align with their business objectives, ensuring their interests are represented in critical legislative processes. Our attorneys engage with key stakeholders, including members of the Puerto Rico Legislative Assembly and local regulatory bodies, to shape fiscal policies that promote economic growth, stability, and competitiveness.
We assist clients in monitoring and analyzing proposed legislation, providing insights on potential regulatory changes, and assessing the impact of new laws or amendments on their operations. By leveraging our deep understanding of both local and federal tax systems, we ensure that our clients are well-positioned to navigate tax reforms, incentives, and compliance requirements.
Our services also include advocating for tax-related incentives and other economic development programs, working with government entities to create opportunities that foster business expansion. Whether it’s tax credits, grants, or other financial incentives, we guide clients through the legislative process to maximize the benefits available to them.
In addition, we help clients manage risks associated with regulatory uncertainty by providing proactive advice and strategies that mitigate potential legal or financial consequences. Whether engaging in lobbying efforts, drafting policy recommendations, or negotiating with agencies, our attorneys ensure that our clients’ voices are heard in the decision-making process and that their interests are effectively represented in government.
Government Contracts & Procurement
We advise clients on government contracts where taxation plays a crucial role, ensuring that they understand how contract terms impact overall costs, tax liabilities, and available exemptions. Our firm helps clients navigate the complex tax laws that affect public procurement processes, including federal, state, and local tax implications. We provide strategic guidance on how to structure contracts to minimize tax exposure, maximize tax savings, and take advantage of available exemptions or incentives that may be applicable to specific government projects.
We assist in identifying tax-related opportunities within government contracts, such as tax credits, incentives for certain industries, or favorable tax treatment for particular types of expenditures. Our firm also helps clients manage compliance with procurement regulations, ensuring that all contractual obligations align with Puerto Rico’s tax laws and relevant federal statutes.
In addition, we support clients in addressing and resolving any tax disputes or challenges that may arise during or after the procurement process. Whether negotiating tax terms, defending against tax-related claims, or advocating for fair treatment in contract administration, our attorneys ensure that clients’ interests are protected throughout the lifecycle of their government contracts.
With deep expertise in both taxation and government procurement processes, we offer comprehensive support to help clients navigate the complexities of government contracting while minimizing tax risks and maximizing financial benefits.
Mergers & Acquisitions
In mergers and acquisitions (M&A) transactions involving businesses operating in Puerto Rico, we provide comprehensive counsel on structuring deals to optimize tax benefits while ensuring full compliance with both local and federal regulations. Our expertise extends to guiding clients through the complexities of Puerto Rico’s tax incentives, such as Act 82-2010, which governs tax treatment in M&A transactions, as well as federal laws related to corporate reorganizations under Section 368 of the Internal Revenue Code.
We assist clients with all aspects of the M&A process, including conducting thorough due diligence to identify potential risks and liabilities, structuring tax-efficient transactions, and negotiating deal terms that align with their strategic goals. Our attorneys work closely with clients to design and implement tax strategies that minimize liabilities and maximize post-transaction value.
We also support clients in navigating regulatory approvals and compliance matters specific to Puerto Rico, ensuring that all necessary filings and documentation are properly submitted to local agencies. In addition, we provide advice on cross-border M&A transactions, addressing any potential issues related to jurisdictional challenges, transfer pricing, and international tax considerations.
Post-transaction, we help clients with the integration process, offering guidance on tax structuring, operational alignment, and ensuring that the combined entity complies with both local and federal tax laws. Whether handling complex corporate reorganizations, negotiating strategic alliances, or advising on spin-offs, our firm is committed to delivering tailored solutions that drive long-term value and success in M&A transactions.
Nonprofit Organizations
For nonprofit organizations seeking exemptions under Section 1101 of the Puerto Rico Internal Revenue Code or similar provisions under federal law (e.g., Section 501(c)(3)), we provide comprehensive guidance on obtaining the necessary approvals from relevant authorities. This includes assisting with the preparation and filing of Form SC-2822 to obtain exemption from income taxation locally, as well as ensuring compliance with ongoing reporting and filing requirements, such as annual informational returns (e.g., Form 990) for federal tax-exempt organizations.
Our firm offers expert counsel on governance and structuring nonprofit entities to maintain their tax-exempt status, including advising on board composition, bylaws, and compliance with both local and federal regulations governing nonprofit operations. We also assist nonprofits in navigating issues related to fundraising activities, charitable donations, and tax-deductibility of contributions.
We guide nonprofits through the complexities of unrelated business income (UBI) taxation, helping organizations understand when and how their business activities may be subject to UBI tax, and develop strategies to minimize any potential tax liabilities.
In addition, we provide advice on strategic planning and operations, ensuring that nonprofits remain focused on their exempt purposes while mitigating any risks that could jeopardize their tax-exempt status. Whether you are a newly formed organization or a long-established nonprofit, we help clients meet their regulatory obligations, optimize their tax benefits, and focus on achieving their charitable missions.
Tax Exemptions & Incentives
Our expertise lies in helping businesses secure valuable tax exemptions and incentives under Puerto Rico’s local laws, such as Act 60/22 (formerly Acts 20/22), along with a wide range of other economic development programs. We specialize in guiding clients through various incentive programs across multiple industries, including manufacturing, technology, tourism, renewable energy, agriculture, and more.
Our firm provides tailored strategic planning to help clients navigate these programs, ensuring they maximize the full potential of tax credits, grants, exemptions, and deductions specific to their business needs. We support businesses throughout the entire process—from program application and approval to compliance and renewal—ensuring that they continue to benefit from the incentives over the long term.
With a deep understanding of both local Puerto Rican and federal tax laws, we help clients coordinate tax exemptions across jurisdictions, creating efficient tax structures that maximize available opportunities. By offering personalized guidance and crafting customized tax strategies, we help clients achieve sustainable growth, reduce operational costs, and improve overall profitability while ensuring compliance with all regulatory requirements.
Our goal is to position our clients to take full advantage of Puerto Rico’s business-friendly environment, so they can grow, expand, and thrive on the island.
Taxation
We offer comprehensive legal services covering all aspects of taxation law for businesses operating in Puerto Rico. Our experienced attorneys are well-versed in income taxes under Act No. 40-2020, property taxes, employment-related payroll taxes, sales/use taxes governed by Act No. 76-2000, and excise duties on goods and services like alcohol and tobacco.
Our expertise extends to handling complex tax audits and defending clients against tax assessments both locally and internationally. We are skilled in navigating cross-border taxation issues, ensuring compliance with U.S. tax laws while taking full advantage of Puerto Rico’s unique tax incentives.
Beyond compliance, we focus on proactive tax planning and risk management, helping clients optimize their tax positions, mitigate liabilities, and capitalize on available tax exemptions and incentives. We craft tailored solutions that consider each client’s specific business needs, whether they operate in industries such as healthcare, renewable energy, technology, or manufacturing.
Additionally, we assist clients in resolving tax disputes through negotiation and litigation, offering strong representation at administrative hearings and in court. We also provide strategic guidance on State and Local Tax (SALT) matters, specifically navigating the tax nuances of Puerto Rico’s system.
Whether dealing with individual or corporate tax matters, our goal is to deliver expert guidance and robust defense to protect our clients’ interests and ensure compliance with both Puerto Rican and federal tax laws.
