Puerto Rico Tax Changes Affecting Individual Taxpayers

In July 2014, Act 77 was codified into law.  In it were several amendments to the Internal Revenue Code of Puerto Rico.  Changes affecting individual taxpayers include, but were not limited to, changes in the alternate basic tax bracket, credits for prior year alternate tax payments, changes to individual long-term capital gains, and individual dividend distribution tax rate.  The individual long-term capital gains rate for individuals increased to 15% for all transaction occurring after June 2014.   Similarly, the individual tax rate for dividend distributions was also increased to 15% for all transaction occurring after June 2014. There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.

 

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Disclaimer

The information on this website is general information and is for educational use only and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

 

IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.