Read our insights

When planning for retirement, or even if you are already retired, it is important to evaluate and assess the factors that can affect the lifetime of the assets that will finance your retirement.

On November 2, 2017, the Republican members of the House Ways & Means Committee released a draft Tax Reform Bill named the Tax Cuts and Jobs Act, formally commencing a tax reform process in the United States that would consequently affect Puerto Rico.

Following is an updated summary of our 2017 Tax Calendar due dates for the months of November and December.

Many companies who have suffered damages to their property have experienced business interruptions for some time. Most of those companies have insurance policies covering damages to property and interruptions caused by these natural disasters. Accounting for insurance recoveries depends in the nature of the claim.

As a result of the passing of Hurricane María through Puerto Rico on September 27, 2017, the Puerto Rico Treasury Department (“PRTD”) announced the postponement of various tax filing and payment due dates during the months of September and October 2017. Informative Bulletin 17-25 (“IB 17-25”) specifies the new due dates for some tax returns and/or payment of taxes.

Many private and public companies are struggling to implement the ASC 606 revenue recognition standard. Progress is slow, while the deadline — at least for public companies — is approaching quickly. The new standard will be effective in the first quarter of 2018 for calendar-year public companies and in 2019 for nonpublic entities.

On September 29, 2017, the President of the United Stated of America signed into Law H.R 3823, known as the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (the “Act”), which provides a series relief measures for zones and areas that were affected by hurricanes Harvey, Irma and Maria, among other matters. Foremost among these is the concession of a business tax credit under Section 38 of the U.S. Internal Revenue Code of 1986, as amended (the “IRC”) to employers for employee retention.

Questions have arisen in practice regarding the presentation of current and noncurrent assets and liabilities of a discontinued operation in the statement of financial position. In particular, stakeholders have questioned whether there are circumstances in which it is appropriate to classify as current all assets and liabilities of the discontinued operation.

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.