Director Dr. Vladimir Starkov’s article “Puerto Rico Service Exporters Must Document Well to Avoid IRS Ire” was recently published in Bloomberg Tax. In the article, Dr. Starkov describes how various tax laws have incentivized manufacturing in Puerto Rico over the years, including the Puerto Rico Incentives Code Act 60-2019 (or Act 60). Act 60 qualifies many activities, including export service businesses, for low corporate tax rates and deems distributions from earnings and profits won’t be taxable. Dr. Starkov offers tips on how businesses that rely on provisions of Puerto Rico Act 60 can prepare documents of related-party transactions to avoid IRS penalties for misstating export services income.