While tax laws change frequently, our compliance and consulting teams are ready to help you understand Puerto Rico's complex tax system
Helping you from the inception of your business to establishing and running an accounting department in Puerto Rico
The US Tax Cuts and Job Act of 2017 aims to spur long-term investments in low-income urban and rural communities throughout the US and Puerto Rico by investing in a qualified opportunity fund.
The Puerto Rico Code establishes a 51% limitation on the amount of deductions that an entity can take for expenses paid to related entities outside Puerto Rico or on allocations of expenses made to the Puerto Rico entity.
Digitization is allowing tax authorities in Puerto Rico to collect tax data in real time or near real time, and use the information to respond quickly and in targeted ways to perceived compliance risks.
The Disaster Tax Relief and Airport and Airway Extension Act of 2017 (the “Act”) allows relief measures for zones and areas that were affected by Hurricanes Harvey, Irma and Maria. Of particular interest was the concession of a business tax credit to employers for employee retention on disaster areas under the U.S. Internal Revenue Code of 1986, as amended (the “IRC”).
Act 25 of 2017 created a new category of merchants known as “Non-withholding Agent”. These merchants are engaged in the business of “mail order sales” and their only contact with Puerto Rico is that the buyer is a resident of Puerto Rico or a person carrying on a trade or business in Puerto Rico.
The federal tax guide for Puerto Rico employers (Publication 179) has issued the following changes for taxable year 2018.
The Opportunity Zones legislation aims to foster the creation and expansion of businesses in certain communities through short- term and long-term capital gains tax deferral and the potential of significant set-up in basis.
The federal tax guide for Puerto Rico employers (Publication 179) has issued some changes for taxable year 2018.
The Puerto Rico Treasury Department issued Administrative Determination No. 18-05 (“AD 18-05”) to both confirm the requisite filing of documentation to properly claim the property casualty loss deduction, and to establish the process whereby this evidence will be submitted to the Puerto Rico Treasury Department for purposes of the 2017 Tax Return.
The Internal Revenue Service has issued Publication 15 - Employer’s Tax Guide 2018, which incorporates changes to Social Security and Medicare and disaster tax relief applicable to taxable year 2018.
Income Tax Returns for individuals and corporations are due on or before the 15th day of the fourth month following the close of the entity’s taxable year. For calendar year taxpayers whose tax year ended on December 31, 2016 the corresponding due date this year is April 18, 2017.
