Puerto Rico

Corporate - Significant developments

Last reviewed - 30 June 2020

The Governor of Puerto Rico, on 10 December 2018, signed into law House Bill 1544 as Act 257 - 2018 (Act 257). Act 257 amended numerous provisions of the Puerto Rico Internal Revenue Code of 2011 (PRIRC), including reducing the corporate income tax (CIT), limiting certain deductions, subjecting the gain on the sale of a PR partnership interest to PR income tax, changing certain sourcing rules, and amending the information reporting requirements. Act 257 also amended various sales and use tax (SUT) provisions.  Also, on July 1, 2019, the Governor of Puerto Rico signed into law the New Incentive Code, Act 60 of 2019.