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Previously, there was a requirement for companies to have a minimum of 3 workers, but recent amendments in 2017 now implies that the proprietor themselves can also be the only employee. This is primarily due to the fact that US residents who stay in Puerto Rico aren't required to pay US federal tax on income and capital features. This makes Puerto Rico most perfect for high incomes business homeowners, as something in extra of the USD 50,000 salary would solely be taxed on the 4% company tax price, so the more that is earned, the greater the tax benefits. As a United States territory, Puerto Rico presents some unique tax advantages for US residents which even probably the most renowned tax havens would discover tough to match. The proprietor is required to be paid out an inexpensive wage which would be taxed as income (at a rate of about 30%), but the remaining earnings could be distributed free of tax.

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