Tuesday, January 12, 2016

Amendments to Tax Incentives Laws and Rules - Act No. 187-2015

On November 17, 2015 Act No. 187- 2015 was enacted to establish a new integrated electronic data center for validation and fiscalization of business activities that are promoted under special laws and enjoy tax benefits.

Act No. 187 launches the issuance of an annual Certificate of Compliance for decree grantees, by the Director of OITE. This Certificate is intended to attest to the fact that the grantee is in full compliance of its obligations under its grant. The Certificate of Compliance must be included with the tax returns in which benefits under the grant are being claimed and eventually will be posted in the integrated electronic data center when such system is operational.

Without the Certificate of Compliance, the taxing authorities are not obligated to recognize or apply the benefits under the grant. The taxing authorities, including municipalities, must rely on the Certificate of Compliance, but such authorities may request clarifications or additional information if they have any doubt or concern about compliance by the grantee.

Another notable change to the current rules for corporations applying for Act 20 benefits is the requirement for at least five (5) employees to be generated at the time the decree is granted.

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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.

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