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Puerto Rico Treasury Department has issued a Proposed Regulation to allow taxpayers to elect how to compute and claim automobile expenses incurred/paid in the trade or production of income in Puerto Rico.

In keeping with the current Administration’s desire to stem the exodus of professionals from Puerto Rico – specifically, physicians –, on February 21, 2017, the Governor of Puerto Rico signed into law House Bill No. 5 (“HR 5”), known as the INCENTIVES ACT FOR THE RETENTION AND RETURN OF MEDICAL PROFESSIONALS (“Act 14-2017”).

On February 8, 2017, the Governor of Puerto Rico signed H.R. Bill No. 3 into law, Act No. 9 of 2017 (“Act 9”), which amends the Puerto Rico Trust Law of 2012 (the “Trust Act”), as well as the 2011 Internal Revenue Code for a New Puerto Rico (the “Code”), to provide a “better and broader protection of assets” under trusts and create a more favorable environment for employers to offer their employees retirement plans. Please refer to our January 13, 2017 Tax Alert in which we summarize the provisions of H.R. Bill No. 3.

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The Puerto Rico Treasury Department (PRTD) has issued the Informative Bulletin No. 16-06 to inform changes in Informative Returns Reporting Requirements.

The Board issued ASU 2017-01, Clarifying the Definition of a Business, which provides a new framework for entities to use when determining whether a set of assets and activities (together referred to as “a set”) constitutes a business. The amendments in the ASU will assist entities when they evaluate whether transactions should be accounted for as acquisitions (or disposals) either of assets or of businesses.

On January 9, 2017, Governor Ricardo Rosselló Nevárez’s Administration, through the House of Representatives’s majority delegation, introduced House Bill No. 451 (“Bill 451”) to, among others, amend Section 2101 Puerto Rico Internal Revenue Code of Puerto Rico of 1994 (the “1994 Code”), in order to extend the term of the excise tax on certain tangible property and services.

Puerto Rico’s economic and fiscal crisis has triggered the migration of residents at an accelerated and alarming rate. Many have felt compelled to leave the island in search of employment opportunities and a better quality of life. Chief among those departures are the island’s medical professionals, whose continued exodus has generated into a public health crisis.

On January 2, 2017, House Bill No. 3 (“Bill 3”) was filed in the Puerto Rico House of Representatives. The legislative piece aims to promote the retention and return of professionals to Puerto Rico by providing more flexibility and continuing to expand the creation of retirement plans.