Reshoring: Puerto Rico is the Solution
Puerto Rico is the largest exporter of biopharmaceuticals in the United States and the fifth largest pharmaceutical manufacturing territory in the world.
With more than 60 years of manufacturing experience, Puerto Rico has the infrastructure needed to establish manufacturing, R&D or supply chain operations in the United States— producing exports of $13.2 billion yearly, more than any state. It also offers an aggressive tax incentive program designed to promote pharma, technology and bioscience industries.
Why Puerto Rico?
Puerto Rico is strategically located in the Caribbean and, as a US jurisdiction, its pharmaceutical operations are subject to federal laws and regulations. Likewise, its technology and research and development activities are protected by US patent laws. Puerto Rico has a multigenerational US trained and highly skilled workforce with 8.6 times more concentration of pharmaceutical experts than the national average. It also has a sophisticated logistics infrastructure designed for high security transfer of controlled substances. The Island’s competitive tax offering outsteps its foreign competitors. Most importantly, local incentives can be complemented with federal tax programs, including opportunity zones among others.
Puerto Rico Tax Incentives Code, Act 60 of July 1, 2019, offers aggressive tax benefits to promote manufacturing and a variety of other industries.
Puerto Rico is best positioned with the infrastructure, talent, tax incentives and expertise to offer a competitive and viable solution to bring offshore production back to the United States.
About BDO in Puerto Rico
BDO in Puerto Rico is the largest locally owned accounting and advisory firm on the island. It is led by 13 partners who are experts in their field, driven by about 140 employees and supported by BDO Global, the fifth largest accounting firm in the world with presence in more than 160 countries. In recent years, BDO in Puerto Rico has assisted more than 500 businesses and individuals to take advantage of Puerto Rico's tax incentives as a key platform to expand and diversify their operations.
BDO in Puerto Rico offers its tax services through its affiliate BDO-Tax, LLC, a Puerto Rico entity member of BDO International Limited, a United Kingdom company limited by guarantee, and form part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
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