Pending Puerto Rico Legislation Could Mean Significant and Immediate Changes for Taxpayers

July 3, 2017 Charles Maniace

Although details are currently scant, Puerto Rico’s 2017-2018 budget legislation, if passed, could make two changes that will require taxpayers to make immediate adjustments to their current sales tax processes: 

  1. The budget appears to require taxpayers who generally make payments in excess of $2000 monthly, to make two payments per month instead of one. The first payment would be due on the 15th and the second on the last day of the month. This process would apply to both state and local tax and could impact June payments made during the month of July.
  2. The budget also appears to modify the 4% reduced rate which applies to certain “business to business” transactions by replacing it with a 2% rate.

The Commonwealth of Puerto Rico faces enormous fiscal challenges and has a longstanding history of making dramatic and immediate changes to their sales tax rules intended to close their “tax gap.” Sovos will be monitoring the situation in Puerto Rico closely and will provide continued updates through this forum.

About the Author

Charles Maniace

Charles Maniace is the Director of Regulatory Analysis at Sovos, a leading global provider of software that safeguards businesses from the burden and risk of modern tax. An attorney by trade, Chuck leads a team of attorneys and tax professionals responsible for all the tax and regulatory content that keeps Sovos customers continually compliant. Over his 15 year career in tax and regulatory automation, he has provided analysis to the Wall Street Journal, NBC, Yahoo! Finance, Politico, USA Today, Entrepreneur and more.

Follow on Linkedin Visit Website More Content by Charles Maniace
Previous Article
Illinois Releases New Tax Tables and Withholding Allowance Certificate

Illinois’s Department of Revenue has lately released new tax tables and a new withholding allowance certifi...

Next Article
Mexico Extends FATCA and CRS Deadlines

Along with new deadlines, Mexico tax authority releases additional CRS specifications.


Regulatory Analysis News - Delivered Weekly

Thank you for subscribing!
Error - something went wrong!