The Secretary of the Treasury for the Commonwealth of Puerto Rico announced that they plan on encouraging the local legislature to adopt significant tax reform measures, including a number of items that will impact sales tax (locally known as IVU). The details of the proposed reforms have not been released but the Secretary has indicated that one of the measures will involve a reduction of the sales tax rate applicable services provided between 2 businesses (B2B) from 4% to 2%. Other proposed changes include a possible reduction in the personal income tax rate. We expect to learn more about these proposals in the upcoming month.
The fate of the twice-monthly sales tax filing requirement reported earlier still remains uncertain.