New Circular Letter: Clarification of Procedures Under the Puerto Rico Incentives Code and Prior Incentive Laws

On May 3, 2025, the Puerto Rico Department of Economic Development and Commerce ("DDEC") issued a circular letter clarifying certain procedures under the Puerto Rico Incentives Code and prior incentive laws. The circular letter aims to streamline processes and address a backlog of applications.

Key Topics Covered:

• Reshoring Strategy: The DDEC is prioritizing efforts to attract businesses to establish operations in Puerto Rico.

• Application Backlog: The circular outlines measures to address and reduce the significant volume of pending applications.

• Application Procedures: The DDEC details processes for new tax exemption applications and amendments, including deadlines and requirements.

• OIN Notifications: The circular clarifies requirements for various notifications to the Office of Incentives for Businesses in Puerto Rico (OIN).

• Application Supplements: Guidance is provided on submitting additional information to pending applications.

• Follow-up and Administration: The circular provides instructions for application follow-up, file review, and changes of representation.

Please contact us if you have any questions about how this may affect your business.