Welcome

Welcome to Caribbean CPA, your own personal CPA Firm right here in Puerto Rico. Our firm was created to serve the Tax, Accounting and International Financial Reporting obligations of International Entrepreneurs living in Puerto Rico. We know how difficult it is to start a new life overseas. You are learning a new language; getting used to a new culture and even a new way of life; at the same time that you are striving to integrate to your new community. If you have family, your loved ones are also going through this transition. On top of that, you just discovered that your new tax and compliance obligations are way more different than expected. Precisely now, when you no longer have the advice of your old trusted accounting firm; they remained back home. That is the kind of situations Caribbean CPA was specifically designed to solve. We believe that something as mundane as taxes and international financial reporting obligations have no right to interfere with your new dream life in Puerto Rico. Let us take away the complexities of tax and international financial reporting so you can start enjoying everything your new life has to offer. Please contact us for a free consultation.

“There is only one good, knowledge, and one evil, ignorance.” ― Socrates ―

Tax Savings for You

As an International Entrepreneur living in Puerto Rico, you are subject to new tax and financial reporting obligations. However, you are also entitled to special tax benefits, not available to you before. Some of the tax privileges you could be entitled to as an International Entrepreneur living in Puerto Rico are:

  • Exclusion of Puerto Rico Source Income from U.S. Federal Income Taxes
  • Tax Exemption on Dividends and Interest received by a Resident Individual Investor
  • Tax Exemption on Capital Gains recognized after becoming a Resident Individual Investor
  • Four percent (4%) Tax Rate on Income from Puerto Rico Exports
  • Zero percent (0%) Tax Rate on Dividends from Puerto Rico Export Income

“A good decision is based on knowledge.” ― Plato ―

Our Clients

Our typical clients include Freelancers, Entrepreneurs and Startups that recently relocated to the U.S. Territory of Puerto Rico. Although they come from very different backgrounds, all of them have decided to relocate to Puerto Rico to take advantage of the many benefits this Caribbean island has to offer. Some of the advantages include:

  • The tax benefits available to Puerto Rico Act 20 businesses
  • The tax benefits available to Puerto Rico Act 22 individual investors
  • A real estate market full of investment opportunities
  • The advantages of being a U.S. Territory right in the middle of the Caribbean
  • Close proximity to the British Overseas Territory of Virgin Islands
  • Close proximity to the British Overseas Territory of Cayman Islands

“The whole is more than the sum of its parts.” ― Aristotle ―

Getting Started

Tax Preparation and International Financial Reporting for a Puerto Rico resident can be overwhelming. However, with proper preparation, Caribbean CPA can help you take the complexity out of the equation when April 15 is just around the corner. We are there for you every step of the way; from determining your obligations; to gathering your information; preparing your filing documents; explaining the information before filing and filing all your documentation. For your convenience, we prepared a list of the most common documents a Puerto Rico resident will need before tax season. The list is by no means exhaustive, but it will give you an idea of what documentation you should look up to as soon as the new year arrives.

Gather either your last year’s tax return or the last return you filed. Please remember, you need your Puerto Rico Income Tax Return (filed with the Puerto Rico Treasury Dept.), U.S. Income Tax Return (filed with the IRS) and any other state or local income tax return filed in the past. Each taxpayer’s situation is unique. Depending on your particular financial situation, you may have state and local tax filing requirements in the U.S. in addition to your federal tax filing obligations. Please gather all tax return documentation.

If you have bank accounts, investment accounts or other financial assets outside the U.S. (like a foreign pension for example), you may have the obligation to file international financial reports with the U.S. Treasury Dept. Some of these obligations are independent of tax filing requirements; which means, you may have an international financial reporting obligation even if you do not have to pay U.S. Federal Income Taxes. If you filed international financial reports in the past, please gather this documentation as well.

If you travel between Puerto Rico and the U.S. or other overseas locations during the previous year, you will need this information to prepare your tax returns. Your travel dates are used to determine your residency status, as well as to calculate your tax information. If you did not keep a travel log, gather as much information as possible to recreate your travel calendar. Information such as hotel reservations, stamps on your passport, air fare tickets and credit card reports can be used to obtain this data.

Gather all income related documents you receive related to last year. These documents usually arrive early in the year. If you work as an employee, you will receive a form named 499R-2/W-2PR from Puerto Rico employers and a form named W-2 from U.S. employers. If you work as an independent contractor, you will receive a form named 480.6B from Puerto Rico clients and a form named 1099-MISC from U.S. clients. If you have investments, you will receive forms named 1099-INT, 1099-DIV and 1099-B from investment accounts in the U.S. and forms named 480.6B from investment accounts in Puerto Rico.

Depending on the nature of the expense, you may or may not receive a document serving as evidence for the amounts you paid. If you have a U.S. mortgage, you will receive a form titled 1098; for a Puerto Rico mortgage, you will receive a form titled 480.7A. Are you paying student loans? If you are, you will receive a form named 1098-E. Did you make charitable donations? If you did, you may have to request proof of the donation to the charitable organization. Other expenses may not have a specific form attached, like medical expenses. In this case, you will have to keep copies of receipts or other evidence as proof of these payments.

Let’s Work Together

We know how challenging it is to start a new as an International Entrepreneur living in Puerto Rico. You ask yourself: “who can prepare my Puerto Rico taxes this year and explain them to me in English?” I now live in Puerto Rico, my trusted adviser remained back home, and they don’t do Puerto Rico taxes. That is where Caribbean CPA comes in, because being away from home does not mean you have to compromise on the quality of your financial advice. Please contact us for a free consultation.

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