Tax Reform on the Horizon in Puerto Rico

July 19, 2017 Ramon Frias

The Secretary of the Treasury for the Commonwealth of Puerto Rico announced that they plan on encouraging the local legislature to adopt significant tax reform measures, including a number of items that will impact sales tax (locally known as IVU). The details of the proposed reforms have not been released but the Secretary has indicated that one of the measures will involve a reduction of the sales tax rate applicable services provided between 2 businesses (B2B) from 4% to 2%. Other proposed changes include a possible reduction in the personal income tax rate. We expect to learn more about these proposals in the upcoming month.

 The fate of the twice-monthly sales tax filing requirement reported earlier still remains uncertain.

The post Tax Reform on the Horizon in Puerto Rico appeared first on Sovos.

About the Author

Ramon Frias

As Tax Counsel, Ramon is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a JD from the Universidad Autonoma de Santo Domingo.Ramon has written many essays about tax administration, and for one of them won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos Compliance, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.

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