Fringe benefits

United States and foreign executives assigned to Puerto Rico by their employers normally negotiate with their employers the fringe benefits listed below. Most fringe benefits may be taxable under Puerto Rico income tax laws.United States and foreign executives assigned to Puerto Rico by their employers normally negotiate with their employers the fringe benefits listed below. Most fringe benefits may be taxable under Puerto Rico income tax laws.

Children’s education - Education is English is only available from private schools which are generally quite costly. Many large employers sending executives to the Island generally will subsidize the cost of education for their executives’ children. See EDUCATION, LANGUAGE.

Moving expenses - to and from Puerto Rico. These occasionally include the cost of hotel stays and the cost of storage of household items until a permanent residence is found.

Home rental - Home rentals are generally high in Puerto Rico. Some employers will subsidize their executives' rental expenses, either totally or for any amounts in excess of comparable rentals at their prior location.

Vehicles - Executives may bring their own vehicles to Puerto Rico. However, many find it convenient to be assigned company vehicles for the duration of their stay in Puerto Rico.

For related subjects, see AUTOMOBILES.

Cost of Living Allowance (COLA) - The term is utilized by the Federal Government, which stipulates a percentage in excess of comparable U.S. salaries to Federal employees overseas to compensate a higher cost of living. At present, Federal agencies utilize percentage guidelines in establishing the “cost of living allowance”.

Some employers find it necessary to pay a portion of their executives’ salaries from headquarters funds, in order to be able to keep the executive covered by some U.S. fringe benefits such as health insurance, retirement plans and others which may not necessarily be applicable to all Puerto Rico employees.

Security - The cost of security systems. See HOME SAFETY.

Water - The cost of water-treatment systems as well as the cost of water reservoir tanks. See WATER.

Vacation travel - Some employers will pay for the cost of traveling to their executives’ permanent address periodically for vacations with the family.

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