the governor Pedro Rafael Pierluisi Urrutia anticipated on Friday additional amendments to the Puerto Rico Internal Revenue Code for individuals and corporations.
According to Pierluisi Urrutia, the goals are: to lower the tax rate on corporations and individuals and minimize the process of filing sheets in business.
“We need to see how we simplify it. One of the things I understand needs to be done is that we are a U.S. jurisdiction and compete with the states. What needs to be ensured here? That the contributory impact in Puerto Rico is less than it is to the states, ”the governor said during his participation in the forum, called“ Competitiveness and Economic Development for Puerto Rico: Challenges and Opportunities, ”of the College of Certified Public Accountants of Puerto Rico (CCPA).
He explained that in the United States the tax rate for businesses is 21 percent, while in Puerto Rico it is 37.5 percent. Still, U.S. President Joseph Biden aims to raise the rate to 27 percent.
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The governor proposes to bring the business tax rate in Puerto Rico to 27 percent or less.
For individuals, the governor proposes to at least equal the percentage taxed in the United States.
“But to do this, if I have the Board (of Fiscal Control) in the attitude of denying everything, as the ideal would be to be able to tie the fight on the other side,” he said. ‘federal body created under the Promise Act requires that, for each proposed contributory benefit, a savings or insurance alternative must be presented to offset it.
Another proposal includes the phasing out of inventory tax.
“My opinion is that we should have lower rates, that the tax system should be simpler, that deductions and exemptions should be easier, that anyone can understand what they have to pay because the idea is that it is very attractive to live here in Puerto Rico, that when they think of going to Florida or Texas they think twice, “said Pierluisi Urrutia.
According to the governor, in the coming days he will announce who will make up the Advisory Committee that will help him draft the tax reform project.