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Maritime Transportation
Tax incentive for maritime transportation and shipping companies operating from Puerto Rico, supporting commercial vessel operations.
8 min
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Section Code:
2110.02
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Purpose:
Other Industries — 2110.02
Overview
The Maritime Transportation designation under Section 2110.02 of Act 60-2019, as amended, provides preferential tax treatment for maritime transportation companies and shipping operations based in Puerto Rico. This designation supports commercial shipping, cargo transportation, vessel operations, and maritime services.
Qualifying maritime operators may receive reduced corporate income tax rates, property tax exemptions on vessels and facilities, and municipal tax relief. The program attracts shipping lines, cargo carriers, vessel operators, and maritime service providers.
The key distinction of this designation is its focus on commercial maritime transportation rather than tourism vessels or port infrastructure. Maritime transportation businesses operate commercial vessels, provide shipping services, or support cargo movement by sea.
Puerto Rico's island geography makes maritime transportation essential for commerce. The incentive supports private investment in shipping capabilities that connect Puerto Rico to global markets.
Key Benefits
Reduced Corporate Income Tax Rate
Maritime operators may receive reduced corporate income tax rates on income from qualifying shipping operations.
Property Tax Exemptions
Vessels, port facilities, cargo handling equipment, and maritime infrastructure may receive property tax exemptions.
Municipal Tax Relief
Maritime operators may receive exemptions from municipal license taxes on shipping revenues.
Strategic Maritime Position
Puerto Rico's Caribbean location provides access to major shipping routes connecting the Americas, supporting cargo and commercial vessel operations.
Requirements & Obligations
Maritime Licensing and Registration
Operators must maintain all required maritime licenses, vessel registrations, and certifications from federal and Puerto Rico maritime authorities.
Puerto Rico Operations Base
Maritime operations must be based in Puerto Rico with vessels registered, crew based, or operations substantially connected to the territory.
Business Structure
Operators must establish Puerto Rico legal entities and register with maritime and tax authorities.
Safety and Environmental Compliance
Strict compliance with maritime safety regulations and environmental standards is required.
Employment Requirements
Maritime operators must employ Puerto Rico residents in vessel operations, port operations, and shore-based roles.
Reporting Requirements
Annual reports must document vessel operations, cargo volumes, routes, revenues, and employment.
How to Apply
The application process typically requires eight (8) to fifteen (15) months due to maritime regulatory requirements. Operators conduct feasibility studies and engage with maritime regulatory authorities.
Applications include maritime operation plans, vessel information, route structures, safety programs, environmental compliance plans, and financial projections.
Review evaluates operational viability and regulatory compliance. Upon approval, decrees specify terms. Operators complete setup and commence maritime operations.
This information is educational and should not be considered legal or tax advice. Applicants should consult with qualified legal and tax professionals familiar with Puerto Rico incentive programs before making any business decisions or submitting applications.
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