-
Financial statements audits
Financial statement audits
-
Compliance audits
Compliance audits
-
Compilations and reviews
Compilations and audit
-
Agreed-upon procedures
Agreed-upon procedures
-
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
-
International tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
-
Tax compliance
Business Tax
-
Individual taxes
Individual taxes
-
Estate and succession planning
Estate and succession planning
-
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
-
Sales and use tax and indirect taxes
SUT/ VAT & indirect taxes
-
Tax incentives program
Tax incentives program
-
Transfer Pricing Study
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
-
Business consulting
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
-
Forensic and investigative services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
-
Fraud and investigations
The commercial landscape is changing fast. An ever more regulated environment means organizations today must adopt stringent governance and compliance processes. As business has become global, organizations need to adapt to deal with multi-jurisdictional investigations, litigation, and dispute resolution, address the threat of cyber-attack and at the same time protect the organization’s value.
-
Dispute resolutions
Our independent experts are experienced in advising on civil and criminal matters involving contract breaches, partnership disputes, auditor negligence, shareholder disputes and company valuations, disputes for corporates, the public sector and individuals. We act in all forms of dispute resolution, including litigation, arbitration, and mediation.
-
Business risk services
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
-
Internal audit
We work with our clients to assess their corporate level risk, identify areas of greatest risk and develop appropriate work plans and audit programs to mitigate these risks.
-
Service organization reports
As a service organization, you know how important it is to produce a report for your customers and their auditors that instills confidence and enhances their trust in your services. Grant Thornton Advisory professionals can help you determine which report(s) will satisfy your customers’ needs and provide relevant information to your customers and customers’ auditors that will be a business benefit to you.
-
Transactional advisory services
Transactions are significant events in the life of a business – a successful deal that can have a lasting impact on the future shape of the organizations involved. Because the stakes are high for both buyers and sellers, experience, determination and pragmatism are required to bring deals safely through to conclusion.
-
Mergers and acquisitions
Globalization and company growth ambitions are driving an increase in M&A activity worldwide as businesses look to establish a footprint in countries beyond their own. Even within their own regions, many businesses feel the pressure to acquire in order to establish a strategic presence in new markets, such as those being created by rapid technological innovation.
-
Valuations
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
-
Recovery and reorganization
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
I. Act 169-2020
Residential housing acquisition incentives
Act 169-2020 integrates real estate tax incentives established in Act 216-2011 to Subtitle F of the Incentives Code and extends said incentives until December 31, 2030.
The purpose of incorporating the provisions of Act 216-2011 is to promote the purchase of eligible residential housing in Puerto Rico by providing incentives such as:
a. full tax exemptions for long term capital gains derived from the sale of certain residential real property, including alternate basic tax and alternative minimum tax;
b. extends capital gain loss carryovers from the sale of certain residential real estate to a period of up to 15 years;
c. provides a 5-year tax exemption from real estate property taxes on property of new construction, as defined in Act 216-2011; and
d. grants full exemption from internal revenue stamps and vouchers required by law for granting public instruments (excluding notarial tax) on the acquisition of certain residential real estate.
The Secretary of the Department of Economic Development and Commerce (the Secretary) has been granted a term of 90-days as of December 30, 2020 to publish the corresponding regulations and administrative orders to enforce the amendments incorporated by Act 169-2020.
II. Act 172-2020
Export of Goods and Services Tax Incentives
Preferential tax rate for royalty payments
Act 172 of 2020 (Act 172-2020) amends the Export of Goods and Services Chapter (Chapter 3) of the Incentives Code to mirror Act 73-2008’s export activities provisions (now Chapter 6 of Act 60) related to the preferential tax rate of 12% for royalty payments made to foreign entities. As a result of the amendment, the Export of Goods and Services Businesses will now benefit from a 12% fixed tax rate for any payment of royalties, rents and license fees by the said businesses to a Foreign Person not engaged in trade or business in Puerto Rico. Note that the legislative intent is to grant the Export Business the same preferential tax rate in place for the following industries: Manufacture (Chapter 6), Visitor Economy (Chapter 5), Infrastructure & Green Energy (Chapter 7) and Opportunity Zones.
Eligible Businesses Definition
In addition, Act 172-2020 amends the eligible activities definition to exclude services rendered as an employee.
Entrepreneurship Tax Incentives
Among other requirements established in the Incentives Code, the amendment clarifies that the business must commence operations on or after the submission of the application for tax incentives grant, as opposed to the current rule that the entrepreneur was prevented from commencing operations until the grant was approved.
Tourism Tax Credits
Act 172-2020 establishes that the Exempt Business (as opposed to the Investor prior to the Act 172-2020 amendment) is the taxpayer that is authorized to transfer the Tourism Tax Credit, except when transferred as garment as set forth in Section 3030.01 of Act 60. Furthermore, it provides that the Secretary may authorize the Exempt Business (Tourism) to transfer the portion of the 30% tax credit in the year in which the Exempt Business obtains financing for the construction of the Project.
Incentives for recycling and transformation of scrap from aluminum profiles or extrusions in Puerto Rico
The Government of Puerto Rico establishes as a public interest the reduction and recycling of waste generated by aluminum products in Puerto Rico by providing cash grants to the transformation of waste into raw materials and the manufacture of aluminum recycled products.
Eligible Manufacturers and benefits:
- Extrusion plant – any plant that extrudes bright aluminum profiles will receive an incentive of 6.5 cents per pound manufactured in Puerto Rico.
- Transformation plant – any plant that transforms scrap into aluminum ingots through a smelting process will receive an incentive of 6 cents per pound manufactured in Puerto Rico.
The Secretary has been granted a term of 180 days as of December 30, 2020, to establish regulations regarding the process to request and grant said tax incentives. Said incentives will be funded by the Economic Incentives Fund.
It is important to monitor guidance from the Secretary in connection to the amendments discussed above. As always, we will continue to keep you informed with any new developments.
We are committed to keeping you up to date with all tax-related developments. Please contact our Tax Department should additional information be required regarding this or any other tax issue. We will be glad to assist you.
Caroline López
Tax Manager
Samira Yassin
Tax Senior
Michelle Vivaldi
Tax Semi-Senior
Collaborated in the preparation of this article.
