Restructuring and Turnaround Services

Porto Capital focuses on providing Restructuring and Turnaround advisory services to small and medium sized-business. We make sure businesses find certainty through turbulent times and finding solid ground and revitalize the business entity.

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Tax Planning and Tax Optimization

Managing corporate taxation from the entrepreneur’s and business manager’s perspective can be a daunting task. It becomes an ever increasing difficult function, given the multiple tax reforms and regulations enacted by governmental entities fighting for a bigger slice of the pie.

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Startup

Porto Capital provides management advisory services to startups. From business formation to strategic direction, and tax planning to accounting setup, we help entrepreneurs swim through a sea of regulations, market opportunities and financial & economic concepts.

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Restructructuring, Startup, Tax Planning & CFO Services

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What is the Patente Municipal License Tax?

What is the Patente Municipal License Tax?

Posted by Porto Capital on Mar 16, 2016

What is Patente Municipal (or Volume of Business License Tax)? A Patente Municipal is a tax levied and collected by the Municipalities of Puerto Rico (list). It is the largest source of income of the municipalities in the Commonwealth of Puerto Rico. Who is obliged to pay Patente Municipal? Any person for-profit dedicated to providing any service, sale of any property, any financial business or any business in the Municipality. What are the requirements to enforce the patente municipal? A Municipality may enforce the collection of this tax on any company or business dedicated to the sale of products or services within the Municipality jurisdiction (geographic). What are the tax rates? Please visit this table with all the tax rates for Fiscal Years 2016-2017. A patente municipal is calculated based on sales (turnover). Each Municipality has a its own rate. Can I see the tax return? Sure, click here and here (for addendums) and here for an example provide by the Municipality of San Juan. When should I enroll in the Municipality to comply with the law? Every business must register no later than 30 days after starting the operations. After filing my first declaration of sales, must I continue filing every year? Yes, as long as you keep your business open, the business is required by law to file and pay the municipal license. As a rule, any business shall be required to make a declaration of sales no later than five business days to April 15 of each taxable year. Next filing date: April 22, 2016 (five business days after April 15, 2016) When should I pay...

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Patente Municipal Tax Rates in Puerto Rico

Patente Municipal Tax Rates in Puerto Rico

Posted by Porto Capital on Mar 16, 2016

Patente Municipal Tax Rates Here, you can find Patente Municipal Tax Rates for Volume of Business (VOB) License in Puerto Rico. This is also known as the “Patente Municipal” or “Municipal License Tax” (MLT) for Puerto Rico municipalities. In other jurisdictions this tax is referred to as “Gross Sales Tax” (GST), or “Gross Revenue Tax” (GRT). If you are looking for general information on the Patente Municipal, please visit this page. Note that Puerto Rico Act 20 companies are exempt from paying the totality of this tax. In some instances, there is a full exemption while other tax decrees might have a 60% exemption on the tax. A Volume of Business License tax must be paid at each municipality the business performs services or sells products. Any business engaged in trade or business in Puerto Rico is subject to the Volume of Business License Tax (or “Patente Municipal”). This tax return should be filed by the fifth day after the annual tax return is filed (whether self-employed or corporate income tax returns are filed).  Extensions to file the Volume of Business License (“Patente Municipal”) tax return are available. The tax is due in two installments. July and January. Should the business elect to pay the totality at the filing date, the tax due will have a five-percent (5%) discount on the tax due. Check the tax rates below, in order to see what is the rate that applies to your business. (Links to San Juan, Caguas and Guaynabo provided). Municipality Non-Financial Businesses Adjuntas 0.50% Aguada From $5,001 to $8,334 $25.00 From $8,335 to $100,000 0.30% From $100,001 to $200,000...

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Puerto Rico Tax Incentives – Act 20, Act 73, Act 22 and other – Filing Fees

Puerto Rico Tax Incentives – Act 20, Act 73, Act 22 and other – Filing Fees

Posted by Porto Capital on Feb 4, 2016

Filing Fees 1 This is an unofficial copy of the Filing Fee schedule from the Department of Economic Development and Commerce. Porto Capital does not assume any responsibility for the accuracy and/or changes made to this schedule.    The filing fees will be paid only by Certificate check, Manager’s Check or Money Order, in the order of the Secretary of the Treasury. The Department of Economic Development and Commerce does not accept vouchers, except as described in section fifteen (15). 1 $750.00 New Application/Case; Transfer of shares between related companies 2 $4.500.00 Renegotiations, Consolidations, Waivers and Additional Exemptions2 Transfer of control of non-affiliated companies Extensions3 Cases under Section 16(b)(3)4 3 $500.00 Oppositions Conversions 4 $450.00 Amendments (any change in address, change in name of entity, to add or remove municipalities, to add or remove products or services, request special clauses, fixing date of effectiveness or postponement for up to 4 years since the Decree was approved and it has not been elected, when the term to unconditionally accept a decree or amendment) Transfer of shares without change in control 5 $50.00 Applications under Sections 3(f), 6(f), y 10(b)5 Submittal or issuance of any certificate; sworn statement or affidavit to clarify information about the application that is in process, but has not been approved; unconditional acceptance of Decree or Amendments; notification of residence (Act 22); determination of commencement of operations (if made within the year of the Decree being approved) or any other sworn document for which filing fee has not been set expressly. 6 $100.00 Revocation 7 $300.00 Annual Reports 8 $5,000.00 One-time fee established by virtue of Act...

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Plans & Pricing

Eliminating uncertainty in advisory services

At Porto Capital, we like to be transparent about our pricing structure. Although these fees may be subject to change depending on your specific needs, it is a great starting point to understand how we work.

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