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Puerto Rico Treasury Department released Administrative Determination (“AD 17-04”) to further explain the changes that were introduced to the Puerto Rico Internal Revenue Code with the approval of Act 25-2017.

The Municipalities of Ponce and Caguas have issued Municipal Ordinances to respectively levy a 2% increase to real and personal property tax rates and impose a 0.35% Municipal Business Contribution on taxpayers whose volume of business exceeded $3MM for the year ended December 31, 2016.

The State Insurance Fund Annual Payroll Statement (Form FSE 693) must be filed with the CFSE on or before July 20, 2017. The same must show the number of employees, occupation or industry classification and the respective total amount of wages paid during the immediately preceding fiscal year ended June 30.

President Trump met with a group of community bankers in March 2017, and stressed the need to reduce the regulatory burden on financial institutions and indicated a desire to tailor regulations more to the size of banks.

On May 31, 2017, the Governor of Puerto Rico, Ricardo Rosselló, presented the legislature with his administration’s budget for the Fiscal Year 2017-2018 – the first to fall within the Fiscal Oversight Board’s purview.

The FASB met on May 24 to discuss the results of staff research on the reporting performance and cash flows subtopics in Chapter 4 of the Invitation to Comment, Agenda Consultation.

On May 8, 2017, the Puerto Rico Treasury Department (“PRTD”) issued Administrative Determination No. 17-02 to express its position in regards to the computation of net taxable income for taxpayers’ involved in the maritime and air transportation industry.

On March 16, the FASB’s Emerging Issues Task Force (EITF) reached a final consensus on Issue 16-C, “Determining the Customer of the Operation Services in a Service Concession Arrangement.” The FASB will consider ratification of the consensus at a future meeting. If ratified, the consensus will be issued as an ASU.

Act 154-2010 establishes a 4% Excise Tax on certain personal property and services transactions between related entities for taxable years commenced after December 31, 2010. The tax generally applies to foreign companies that have an office, or are treated as having a permanent place of business in Puerto Rico, and reaches certain threshold levels of production.

Through Administrative Order No. OA-2017-01 the Puerto Rico Fiscal Agency and Financial Advisory Authority has instructed the Secretary of the Treasury Department to conduct an inventory of issued tax credits and to require their holders to provide all of the information that the Secretary deems necessary to support their concession.

With the SEC heightening its scrutiny of organizations’ cybersecurity processes and new technologies also creating new channels for cyberattacks, the need is greater than ever for audit committees to be a more integral part of cybersecurity management efforts.

Circular No. 17-02 to clarifies several inquiries from withholding agents and service providers regarding the issuance of waiver certificates in the case of taxpayers who receive payments for services that are not subject to the 7% withholding.

The Board has issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, with the purpose of reducing complexity in accounting standards.

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The federal tax guide for the employers of Puerto Rico has issued the following changes for the taxable year 2017.