Nov. 27, 2013 – In Puerto Rico, corporations (and in many circumstances LLC’s) that are formed under the Laws of the Commonwealth of Puerto Rico are considered domestic Corporations for tax purposes. Forming as a domestic corporation is advantageous for foreign businesses (i.e. US businesses). This is because domestic Puerto Rico business obligations on US

Puerto Rico Legislature Bill No. 2329, better known as the Transformation of the Commonwealth of Puerto Rico Tax System Act, introduces a Value Added Tax system (hereinafter referred to as “VAT”) in Puerto Rico. Here we discuss the exclusions and exemptions that will be in effect if the Bill is approved as is. ITEMS EXCLUDED

SPECIAL ALERT On February 4, 2015 the Puerto Rico Treasury Department made public the Tax Reform Impact Assessment Report to be considered in the analysis for the development of a new tax system in Puerto Rico. In summary, the report recommends to replace the existing consumption tax structure by a broad-based single rate value-added tax

TAX ALERT On February 11, 2015 the Puerto Rico House of Representatives filed House Bill No. 2329 (hereinafter referred to as “the Bill”) proposing the adoption of the “Puerto Rico Internal Revenue Code of 2015” and the transitory repeal of the Puerto Rico Internal Revenue Code of 2011, as amended (hereinafter referred to as “2011

On May 29, 2015 was approved Act 72 (hereinafter referred to as “Act 72”). This Act establishes that effective on October 1st, 2015, Puerto Rico will begin with the taxation for Sales Tax on the services rendered between businesses and to most of the designated professional services as they are defined in the Puerto Rico

TAX NEWSLETTER As a result of the approved changes to the Puerto Rico Internal Revenue Code of 2011 (hereinafter referred to as “the Code”) under Acts 72 and 159 of 2015, on October 9, 2015 the Puerto Rico Treasury Department released a revised version of Form AS 2916 “Certificate for Exempt Purchases and for Services