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On September 17, 2022, the Governor of Puerto Rico issued Executive Order 2022-045 declaring a state of emergency due to the threat of the atmospheric event named Fiona. The afternoon of September 18, 2020, Hurricane Fiona made its landfall in the Southwest coast of Puerto Rico bringing with it 85 mph winds and a large amount of rain. This event caused many rivers to overflow their banks, causing emergencies around the Island. As a result of these events, the Puerto Rico Department of Treasury (“PRTD”) issued two important publications in relation to the Puerto Rico Sales and Use Tax (“SUT”), which are summarized below:

Effects of Act 52, 2022 in the Puerto Rico Sales and Use Tax (“SUT”).

In recent years, we have witnessed several campaigns and efforts implemented by the Government of Puerto Rico ("Government") to fight tax evasion.

The Office of Management and Budget (OMB) issued the 2022 Compliance Supplement – 2 CFR Part 200, Appendix XI (2022 Supplement) for single audit engagements. Unlike the prior two years, the 2022 Supplement is not expected to include addenda; if new programs are established, they will be included in the 2023 Compliance Supplement.

The Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) issued Statement on Auditing Standards (SAS) No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, (SAS No. 136, as amended) for auditors who perform audits of financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA).

It is the duty of every employer to insure his or her employees against all work-related injuries, illnesses, or death. The State Insurance Fund Corporation’s (CFSE) Worker’s Insurance is the exclusive remedy available to the employee in these cases.

You didn’t go into business to manage cybersecurity. Still, your business needs to manage cybersecurity if it manages data — and almost every business manages data.

Taxpayers engaged in trade or business within the jurisdiction of a Puerto Rico municipality, providing any services for profit, selling any goods, or performing any type of business; are generally subject to the payment of municipal license taxes.

In response to feedback received as part of its post-implementation review of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (referred to as the current expected credit loss (CECL) standard), the FASB recently issued ASU 2022-02, which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for restructurings involving borrowers that are experiencing financial difficulty.

As the Opportunity Zones program’s needs evolve, new US legislation is underway to meet the program’s intended results and unleash the full potential for economic development that the Opportunity Zone Program can provide to communities.

On May 6, 2022, the Governor of Puerto Rico signed Act 20, 2022. Act 20, 2022 provides an exemption from the Sales and Use Tax (SUT) during the last weekend of May, for the articles and equipment used by the population for the preparation for the hurricane season.

Accounting pronouncements issued as of March 31, 2022.

Read this to know what to do and where to file.

To effectively use and control data, businesses need effective data governance. The journey to effective data governance requires each business to identify its unique considerations, roles and rules that inform its principles of value and security.

In July 2019, the AICPA’s Auditing Standards Board published Statement on Auditing Standards 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, which was originally effective for audits of financial statements issued by employee benefit plans subject to ERISA of 1974 for periods ending on or after Dec. 15, 2020.

There have been significant changes regarding the tax credits available for taxpayers for tax year 2021.