.jpg)
Tax
Topic
Discover why Dorado offers unmatched municipal tax advantages for Act 60 companies in Puerto Rico. Learn how to reduce your Volume of Business tax by up to 75%.
How Imperium Helps You Maximize Your Act 60 Benefits in Puerto Rico
Tax
Why Dorado Is the Smartest Municipality for Act 60 Businesses
Author
Joel Ortega is a tax advisor and compliance strategist specializing in Puerto Rico’s tax incentive programs and corporate structuring. A graduate of the University of Puerto Rico with a Bachelor’s in Accounting, he previously held roles at top accounting firms before co-founding Imperium Management Group. At Imperium, he leads the firm’s tax strategy and client advisory services, working closely with high-net-worth individuals and businesses navigating Act 60 and other complex financial frameworks.
Introduction
Most Act 60 business owners focus on the 4% corporate tax rate—but few realize that where you register your company in Puerto Rico can significantly impact your overall tax burden.
That’s where Dorado stands out.
With a unique municipal ordinance that provides an additional 50% exemption, Dorado offers one of the most attractive local tax strategies for Act 60 Export Services companies.
What Is the Volume of Business Tax?
All companies in Puerto Rico must file a Volume of Business Declaration (Patente Municipal) with their local municipality. The municipal tax rate is typically 0.5% of your annual gross revenue—before expenses or deductions.
Example:
$50,000,000 in gross revenue × 0.5% = $250,000 base municipal tax
Act 60’s Standard Exemption
Export Services companies with an Act 60 decree automatically qualify for a 50% exemption on the municipal tax in most municipalities.
Standard exemption:
$250,000 × 50% = $125,000 municipal tax due
Why Dorado Is Different (Ordinance 47)
The Municipality of Dorado passed Ordinance No. 47, granting an additional 50% exemption to eligible businesses operating under Act 60.
That means:
✅ 50% exemption (Act 60)
✅ +50% additional exemption (Dorado)
= Up to 75% total exemption
Dorado Example:
$250,000 base municipal tax × 75% exemption = Only $62,500 due
💡 That’s a $187,500 annual savings compared to municipalities that offer only the standard Act 60 exemption.
📌 Savings Formula: Dorado saves you $1,250 per $1 million in gross revenue.
Other Strategic Benefits of Dorado
- Access to premium virtual office services (like Bee House LLC) that meet Act 60 requirements
- Modern infrastructure and strong business support network
- Fast-track permitting process for new businesses
- Proximity to top real estate, schools, and lifestyle amenities—ideal for relocation and residency planning
How to Register Your Business in Dorado
- Incorporate or move your Puerto Rico entity to Dorado
- Set up a physical or virtual office with a verifiable Dorado address
- File your Volume of Business Declaration through the Dorado municipal system
- Apply for the Act 60 municipal exemption certificates
- Stay in compliance by filing annually and renewing permits
Tip: Working with a local team ensures you don’t miss any paperwork or deadlines.
Real-World Example: Tax Savings (Based on $50M Revenue)
Over 5 years, that’s more than $300,000 saved—just by registering your company in the right municipality.
📌 Reminder: That’s $1,250 saved for every $1 million in business volume.
Let Us Help You Set Up in Dorado
At Imperium Management Group, we help Act 60 clients:
- Establish entities in Dorado
- Secure virtual office space through Bee House LLC
- File exemption certificates and municipal declarations
- Reduce tax exposure through strategic planning
Latest
