Overview
Wrapbook supports Puerto Rico's film production tax incentive program, which allows qualifying productions to receive up to a 40% tax credit on qualifying spend in Puerto Rico. When you set up a project with a Puerto Rico work location, Wrapbook surfaces a dedicated question in your project's Tax Credits settings so you can configure withholding correctly from the start.
What changes when you enable Puerto Rico tax credits
When you add a Puerto Rico work location to a project, the following question appears in your Project Settings, under Tax Credits.
Is this a Puerto Rico tax credit project?
If you select Yes
Non-Puerto Rico resident loan-outs working on the project will be withheld at a reduced rate of 20% instead of the standard 29%. This reduced rate reflects the incentive program's structure and applies automatically to qualifying payroll going forward. A banner confirms All future loan-out payments will be subject to a reduced withholding tax rate.
If you select No
Loan-out withholding continues at the standard 29% rate. A banner confirms: Moving forward, Puerto Rico taxes for loan outs will be calculated at the higher non-incentive rate. Payrolls that have already been processed will not be affected by this change.
How to enable Puerto Rico tax credit settings in Wrapbook
When a Puerto Rico work location is added to a project, you'll be able to enable tax credits from the project's settings using these steps:
In the left-side navigation, click the dropdown menu and select the project
In the left-side navigation, click Project settings
Next to the question Is this a Puerto Rico tax credit project? click to choose Yes if your production qualifies for Puerto Rico film tax incentives
Click the Save changes button to apply the change
Notes:
A Puerto Rico work location must be added to the Project settings before you can enable tax credit settings
Changing this setting mid-production affects future payrolls only. Payrolls that have already been processed will not be retroactively adjusted.
Who Is affected
This setting is relevant to productions that:
Have at least one Puerto Rico work location on their project
Work with non-Puerto Rico resident loan outs
Qualify for Puerto Rico's film tax incentive program
Standard W-2 employee withholding is not affected by this setting.