On December 10, 2018 the governor of Puerto Rico signed into law the 2018 Tax Reform Act (the “Tax Reform”), which introduced several amendments to the Puerto Rico Internal Revenue Code of 2011 (the “PR-IRC”). The Tax Reform introduced changes to the income tax regime, sales and use tax and the income tax withholding requirements, among other. The main provisions are as follows:
- Amendment to Income Tax Rates
- Optional Tax Computation for Self Employed Individuals and Corporations
- Net Operating Loss Deduction
- Withholding Taxes and Informative Returns
- Sales and Use Tax
- Agreed Upon Procedures Report and Compliance Report
- Other Dispositions
The amendments have a significant impact on most taxpayers. Therefore, we recommend our clients and friends to make an assessment of the new provisions. We can assist you in the process and provide you recommendations and planning strategies.
