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On August 8, 2017, Law 92 of 2017 was approved to establish an incentive plan that grants to insured and uninsured employers to the Workmen’s Compensation Insurance Fund Corporation (CFSE), which has outstanding and unpaid debts due to premiums, a discount of 50% of the accumulated debt.

On August 23, 2017, the San Juan Superior Court (the “Court”) held that the municipal business contribution imposed by the municipality of Caguas, known in Spanish as the “Aportación Empresarial Municipal”, was illegal and/or ultra vires.

The Governor of Puerto Rico issued Executive Order No. OE-2017-45, declaring Puerto Rico as a State of Emergency due to Hurricane Irma. To such effect, on September 9, 2017, the Puerto Rico Treasury Department issued Internal Revenue Circular Letter 17-13 to announce the postponement of certain due dates to file and pay taxes that are due during the month of September 2017.

Gov. Ricardo Rosselló has signed into law Senate Bill No. 582, now referred to as Act No. 76 of 2017, to repeal estate and gift taxes in Puerto Rico for transfers of property made after December 31, 2017.

The Puerto Rico Treasury Department issued Administrative Determination 17-09 temporarily allowing the acquisition of prepared food to be exempt from the payment of SUT.

In search of sustainable economic growth through the exportation of services from Puerto Rico and in light of the proposed Tax Reform Bill that is looming on the horizon, on August 8, 2017, the Governor of Puerto Rico signed Acts Nos. 91 and 94 of 2017 (“Act 91-2017” and “Act 94-2017”), which respectively amended Act No. 187 of November 17, 2015 (“Act 187-2015”), as well as Act 20 of January 12, 2012 (“Act 20-2012”).

Understanding the complexity of Puerto Rico Sales and Use Tax (“SUT”) is a great challenge for most merchants. During the past years there have been changes that significantly affected the Puerto Rico SUT. To provide basic guidance and understanding this top 10 SUT tips will help your business comply.

On August 10, 2017, the Puerto Rico Secretary of Labor and Human Resources issued the “Uniform Guidelines for Equal Pay in the Workplace” pursuant to the mandate of Act No. 16 of 2017, enacted on March 8, 2017, creating the Puerto Rico’s Equal Pay Act and Act No. 61 of 2017 which requires that certain government contractors are in compliance with the Equal Pay Act.

A new report issued by the United States Government Accountability Office (GAO) examined trends in small business contracting and the use of SBA programs in Puerto Rico from fiscal years (FY) 2006 through 2016.

On August 3, the Puerto Rico Treasury Department (the “PRTD”) issued Internal Revenue Circular Letter No. 17-12 (“CL 17-12”) to establish an alternative and expedient option to taxpayers under Correspondence Audits.

The FASB has issued a proposed ASU, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, to assist entities in evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) or as exchange (reciprocal) transactions subject to other guidance. The proposal would also address how an entity would distinguish between conditional contributions and unconditional contributions when a transaction is accounted for as a contribution.

Act 42-2017, was enacted on July 9, 2017 to establish the statutory framework applicable to the Medical Cannabis industry. To provide guidance on the provisions of the sales and use tax (SUT) as they relate to this industry, the Puerto Rico Treasury Department issued Administrative Determination 17-0 (DA 17-0) on July 20, 2017.

To provide guidance on the new requirements for the deposit of the Sales Tax, the Puerto Rico Treasury Department issued Administrative Determination 17-07 (DA 17-07) on July 28, 2017 with immediate effectiveness. Following we provide five basic questions and answers that will give you a head start to the new procedures.

The current populist groundswell signals a belief that economic systems aren’t serving the right groups, and scarce resources and attention are going elsewhere. Resentment directed at business already has implications in policy. Tax and regulatory reforms are on the legislative table, and momentum for trade restrictions is building.

In view of the current fiscal crisis, various municipalities in Puerto Rico have resorted to the raising of established taxes and the imposition of new ones to secure additional revenue to offset their rising costs and the loss of funding from the Central Government.

An estate tax repeal could take different forms that could have estate planning implications. If the estate-tax is repealed, the effect of those taxes not collected would be partially offset by limiting the basis step-up at death, up to the first $10 million of appreciated property.