Puerto Rico Bona Fide Resident
If you are a US resident alien, you will satisfy the Presence Test for the entire tax year if you meet one of the following conditions:
- You were present in Puerto Rico for at least 183 days during the tax year.
- You were present in Puerto Rico for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. During each year of the 3-year period, you must be present in Puerto Rico for at least 60 days.
- You were present in the United States for no more than 90 days during the tax year.
- You had earned income in the United States of no more than a total of $3,000 and were present for more days in Puerto Rico than in the United States during the tax year. Earned income is pay for personal services performed, such as wages, salaries, or professional fees.
- You had no significant connection to the United States during the tax year.
Days of Presence in the United States or Puerto Rico.
For purposes of the Presence Test, you are generally treated as being present in the United States or in Puerto Rico on any day that you are physically present in that location at any time during the day. If, during a single day, you are physically present in the United States and in Puerto Rico, that day is considered a day of presence in Puerto Rico.
One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. This section looks at the factors that determine if a significant connection exists. You are treated as having a significant connection to the United States if you:
- Have a permanent home in the United States,
- Are currently registered to vote in any political subdivision of the United States, or
- Have a spouse or child who is under age 18 whose main home is in the United States, other than:
- A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or
- A child who is in the United States as a student.
A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. The dwelling unit must be available at all times, continuously, not only for short stays.
If you are thinking of applying for an Act 22 tax incentive decree and have a question or comment related to the tax compliance under the Puerto Rico Tax Code and the Internal Revenue Code, feel free to send me an email to the contact information below. Maybe I can help.