CAPITAL GAINS TAX RATE

Some people have asked about the current rate for long-term capital gains. A year and a half ago, Puerto Rico's Internal Revenue Code was amended to increase the capital gains tax from 10% to 12.5% for  individuals and for 12.5% to 20% for regular corporations and partnerships. See, Act No. 40 of August 1, 2005. This law became effective January 1, 2006.