|By Marketwired .||
|July 3, 2014 07:00 AM EDT||
DALLAS, TX -- (Marketwired) -- 07/03/14 -- Puerto Rico has attracted several wealthy investors as legislation passed in 2012 finally gains traction. 2012 was the year the Puerto Rican government enacted acts 20 and 22, which offer huge tax benefits to new businesses and residents on the island. The Puerto Rican government estimates that at least 250 individuals will apply for the programs during the current year, but experts warn that moving one's life and business to the U.S. commonwealth is a risky choice.
"If you move to Puerto Rico, you may retain more wealth, but you'll sacrifice safety and quality of life," says Joe B. Garza, a prominent tax attorney based in Dallas who serves clients worldwide. Puerto Rico's current murder rate is more than six and a half times higher than the overall rate in the U.S., according to Fortune Magazine. The New York Times reported a total of 983 homicides in 2010. That is largely to do with the island's dismal poverty rate and the fact that Puerto Rico is a major hub for drug trafficking.
With Acts 20 and 22, Puerto Rico's government hopes to change all of that. "We're catching up to Ireland and Singapore -- you can shelter income legally, and legally in a good way," Alberto Bacó Bagué, Puerto Rico's secretary of economic development and commerce, told the New York Times. The island has already attracted several small to mid-sized financial firms owned by millionaire executives from the mainland.
But even if the tax incentives gain the kind of traction that the Puerto Rican government hopes for, relocating could lead to a significant amount of uncertainty. "There's no guarantee that Acts 20 and 22 will remain untouched," warns Garza. Just a few years ago, the federal government did away with Puerto Rico's tax incentives that exempted U.S. manufacturing companies from paying taxes on profits made on the island. Garza explains, "Puerto Rico is going through a time of instability. To make matters worse, Congress has already set a precedent for quashing the island's ambitious tax policies back in 2006."
Acts 20 and 22 are definitely ambitious. Act 20 -- The Export Services Act -- lowers the earnings tax on transplanted businesses to a flat 4% and guarantees a total exemption from tax on dividends and profit distributions. Act 22 -- known as the Individual Investors Act -- exempts new residents from paying Puerto Rico income tax on all dividends, interests, and capital gains accrued after the individual has become a resident of the island. On top of all this new legislation, Puerto Rican residents (with the exception of federal employees) are already exempt from paying federal income tax.
"Hopefully Puerto Rico's economy will begin to pick up because of this new legislation," says Joe Garza. "But for now, the island has a long way to go, especially in reducing its crime rate. If investors are preparing to live in Puerto Rico for at least 183 days of the year, they should understand that the island may not protect their safety as well as it does their assets."
Attorney Joe Garza is the senior partner at Garza & Harris, a firm specializing in tax and estate planning in Dallas, Texas. Garza & Harris provides clients in over 27 countries with expertise in asset protection and business planning. Garza brings over 30 years of legal experience to his firm. Learn more about Garza & Harris at garzaharris.com
Garza & Harris
2300 Three Gallery Tower 13155 Noel Rd.
Dallas, TX 75240
Tel: (214) 373-3300
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Dec. 1, 2015 02:15 PM EST Reads: 446
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Dec. 1, 2015 02:00 PM EST Reads: 545
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Dec. 1, 2015 01:45 PM EST Reads: 354
OpsHub, Inc. has announced enhanced support for DevOps and Migration for both Team Foundation Server and Visual Studio On-line in a heterogeneous environment. With added support for build and release entities in OpsHub Integration Manager (OIM) Microsoft customers can now leverage Visual Studio build and release services to manage DevOps processes in a heterogeneous environment. With the enhanced support customers can manage the DevOps process in Team Foundation Server while undertaking activit...
Dec. 1, 2015 01:42 PM EST
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Dec. 1, 2015 01:15 PM EST Reads: 305
Cloud computing is unquestionably one of the driving forces of DevOps, as the automation of operations transforms enterprise software development. DevOps, however, is more than a technology trend, as it represents a move toward silo-busting, self-organizing horizontal teams that drive business velocity. At the same time, enterprise Digital Transformation represents an upheaval across the enterprise, as customer preferences and behavior drive enterprise technology decisions. This transformation ...
Dec. 1, 2015 12:35 PM EST
SYS-CON Events announced today that Catchpoint, a global leader in monitoring, and testing the performance of online applications, has been named "Silver Sponsor" of DevOps Summit New York, which will take place on June 7-9, 2016 at the Javits Center in New York City. Catchpoint radically transforms the way businesses manage, monitor, and test the performance of online applications. Truly understand and improve user experience with clear visibility into complex, distributed online systems.Founde...
Dec. 1, 2015 12:15 PM EST
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Dec. 1, 2015 12:00 PM EST Reads: 306
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Dec. 1, 2015 12:00 PM EST Reads: 231
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Dec. 1, 2015 11:45 AM EST Reads: 373
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Dec. 1, 2015 11:45 AM EST Reads: 474
Actifio is powering new application development and testing services from Net3 Technologies (N3T), a managed cloud services provider. N3T's new Symmetry DevOps™ service builds on its existing Palmetto Virtual Data Center (PvDC) Cloud services for data backup and disaster recovery (DR) based on the Actifio Copy Data Virtualization platform. Previously, N3T's data protection and DR services were challenged by overlapping and inefficient legacy hardware and software platforms from multiple vendo...
Dec. 1, 2015 11:30 AM EST
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
Dec. 1, 2015 11:00 AM EST Reads: 141
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
Dec. 1, 2015 11:00 AM EST Reads: 514
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them ...
Dec. 1, 2015 10:45 AM EST Reads: 132