Category Taxation in Peurto Rico

Puerto Rico Rejects Tax Proposal

May 1, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is facing doubt over its upcoming debt issuances , as the government rejects calls to reform taxes.

On April 30th the House of Representatives of Puerto Rico voted 28 to 22 to reject a proposed round of tax changes aimed at helping the country attract foreign investment and to fix the current budget deficit.

Under the details of the proposal, the current 7 percent sales tax would have been replaced with a value added tax levied at 16 percent.

Legislators also rejected alternative measures such a replacing the 7 percent sales tax with a sales tax levied at 1 percent alongside a value added tax set at 13 percent.

Shortly following the rejection of the proposal the Governor of Puerto Rico Alejandro Garcia Padilla held a televised national address in which he said that...

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Puerto Rico to Launch Tax Reform

February 12, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is looking at introducing VAT, and using the newly collected funds to reduce income taxes and provide regular payments to low-income earners.

On February 11th the Governor of Puerto Rico Alejandro Garcia Padilla stated that the government will now consider enacting a significant tax reform in order to help boost the national economy, improve equality, and raise tax revenues.

The overhaul would revolve around the introduction of a Value Added Tax set at a rate of 16 percent, to replace the currently enforced sales tax at a rate of 7 percent.

It is believed that the change from sales tax to value added tax will remove some of the tax burden faced by individuals and place it on businesses, and would boost compliance levels from the currently estimated 56 percent to a l...

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Peurto Rico Turns to Lottery to Aid Tax Revenues

February 8, 2011 Taxation in Peurto Rico

Bingo numbersThe Treasury Department of Puerto Rico intends to instate a nationwide lottery system in the hopes of boosting tax revenues and attempting to reduce the severity of the country’s underground economy.

Last week during a press interview in his office, the Governor of Peurto Rico Luis Fortuño revealed that a new sceme will be put into place by the Puerto Rioco Treasury Department, whereby every sales invoice issued throughout the country will be eligible for a prize draw of up to USD 1000.

The program will be rolled out nationwide on July 1st, and will require all retailers and service providers to use a state-issued tax receipt machine. Each receipt will contain a 10-digit lottery number, making it eligible for a prize in a regular televised winning-number draw...

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