Puerto Rico

Corporate - Significant developments

Last reviewed - 30 June 2025

Between April and July 2025, the Puerto Rico legislature approved various tax laws (namely, Act 12-2025, Act 65-2025, Act 66-2025, Act 67-2025, and Act 72-2025) that collectively reshape critical areas of the Puerto Rico Internal Revenue Code of 2011, as amended (PR-IRC), the Puerto Rico Incentives Code of 2019, as amended (PR Incentives Code), and the Puerto Rico Municipal Code of 2020, as amended (PR-MC). Key changes include updates to entity classification rules, new elective tax treatments, revised tax reporting requirements, expanded eligibility for the cash method of accounting, and targeted incentives for strategic sectors such as agriculture.