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The minimum global tax continues to be a hot topic in 2021. Negotiations in the implementation of a 15% global corporate minimum tax continue to strengthen and evolve as more countries endorse a deal on a global tax.

The Puerto Rico Treasury Department published a new version of the monthly Sales and Use Tax Return that should be used for the filing of the monthly Sales and Use Tax return corresponding to October 2021.

The Puerto Rico Department of Treasury (now on referred as to “Hacienda”) has recently issued multiple official publications to address new tax developments or amend previous publications to clarify their intentions. In this article, we will address some of them.

On March 11, 2021, the U.S. federal government enacted the American Rescue Plan Act of 2021 to assist state governments with the public health emergency caused by the COVID-19 and to boost the economic development of certain industries most heavily impacted by the pandemic.

This second tax season during a global pandemic has begun to feel a little like a return to some sense of normalcy for our clients. Each tax season is a learning experience, and we aim to share the most common do’s and don’ts to help prepare for next year.

For many years, there has been plenty of public discussion around incentives available to resident individual investors (“RII”) that relocate to Puerto Rico, and the last couple of months have not been the exception. This Alert will summarize important recent developments regarding RII incentives, with a focus on Senate Bill 490.

For the past decades, the Government of Puerto Rico has been offering different tax benefits and incentives to local and foreign business entities that either established new operations in Puerto Rico or relocated them to the island. On January 12, 2012, the Government of Puerto Rico (1) enacted Act 20 in an effort to turn the island into an international hub of export services and, (2) enacted Act 22 to promote that individuals relocate to the island by providing certain exemptions from local income taxes.

The Puerto Rico Treasury Department announced the dates of the back-to-school tax free periods for the fiscal year 2021-2022. The back-to-school tax free periods comprise two days in July and two days in January of each fiscal year. During the tax-free periods, the uniforms and school materials will be exempt from payment of the Puerto Rico Sales and Use Tax at the state and municipal levels.

The Puerto Rico Treasury Department published a new proposed regulation to amend Articles 1031.02(a)(33)-2, 1033.07(a)(3)(G)-1, 1033.07(a)(3)(G)-2, 1033.07(a)(3)(G)-6 and 1033.07(a)(3)(G)-7 of Regulation 8049 (“Proposed Regulations”) in an effort to regulate the deduction for expenses on the use and maintenance of automobiles issued in the trade or business.

The emergency caused by COVID-19 has forced the Puerto Rico Treasury Department to work with reduced personnel and to focus its efforts on addressing the situations created by the COVID-19 pandemic.

On June 5, the Finance Minister of the G7 announced the organization’s support for a 15% global minimum corporate rate. The announcement by the seven-member group of the world’s largest economies is a landmark event following years of negotiations on this issue.

Puerto Rico tax and business incentives to qualifying business operating or considering to operate in the country.

On June 14, 2020, the Governor of Puerto Rico signed Act 57-2020, known as the “Complementary Law to Address the Effects of the COVID-19 Emergency on the Puerto Rican Economy” (the “Act”), which comprises a package of measures to reactivate the economy, support businesses and protect workers.

A year into the Covid-19 pandemic, tax rules continue to adapt to embrace the new reality that the pandemic has brought to taxpayers.

As the new Opportunity Zone Fund industry keeps evolving, it is important to check in and update you on what you should be in the know, and what you should be looking forward in the next couple of months.

On December 30, 2020, the Governor of Puerto Rico signed Act 173-2020, to empower the Puerto Rico Treasury Department Secretary to establish a new deadline for the filing of the 2020 Tax Returns.