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New Legislation Affects Foreign Corporations

Puerto Rico

On 25 October 2010, the Governor of Puerto Rico approved Act No. 154, which amends the 1994 Puerto Rico Internal Revenue Code which is effective from 1 January 2011. Taxand Puerto Rico summarises the most important aspects of the legislation.


Taxand's Take

This revenue raising measure imposes taxes on certain non-resident individuals and foreign corporations and partnerships that previously were not taxed under Puerto Rico's existing tax regime. Under the new rules, foreign multinational's tax burden may be affected as corporate tax is likely to rise subject to certain parameters being put in place. However these new rules may not apply to manufacturers or service providing affiliates. They may also be affected by a new Excise Tax Withholding and new filing requirements that are also being put in place.

Your Taxand contact for further queries is:
Juan Zaragoza
T. +787 620 7740

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Taxand's Take Author