Jun 01, 2015
From KPMG TaxWatch
Earlier last week, the Puerto Rico Legislature approved PC 2484, which is intended to address the island’s financial situation. If Governor Alejandro García Padilla signs the bill, the sales tax rate will increase from 7 percent to 11.5 percent effective July 1, 2015. A new 4-percent tax on business and professional services will go into effect on October 1, 2015. The increased rate and new tax on services are measures to assist until the Island transitions to a value-added tax on April 1, 2016. The new value-added tax will be imposed at an 11.5 percent rate on the purchase, transaction, and contracting of goods and services. According to the text of the bill, education and medical services, food, raw materials, and commercial and residential leases will be excluded from the new VAT. Discussions regarding how to improve and refine the tax system will continue during the transitional period. For more information regarding PC 2484 (passed May 25, 2015, awaiting gov. signature), please contact Leah Durner at 202-533-5542 or Rolando Lopez at 787-756-6020.
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The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.