Acosta & Ramirez Law Office, LLC

Governor Ricardo Rossello Signs Into Law the Tax Reform, H.B. 1544

As discussed in our November 19, 2018 newsletter, the Puerto Rico legislature approved the tax reform bill (H.B.1544) to amend the Puerto Rico Internal Revenue Code of 2011, as amended, bringing significant changes to the Puerto Rico tax system. On December 10, 2018, the Governor signed into law H.B.1544.

The Fiscal Oversight Management Board (the "FOMB") has made public expressions as a result of the Governor’s signature of the tax reform bill raising concerns that the video lottery provisions included in this legislation are not revenue neutral. Pursuant to its authority under PROMESA, the FOMB may take any action to prevent the enforcement or application of a law that may be inconsistent with the fiscal plan.

In our A&R Tax E-News Alert we summarized the amendments brought by the enactment of Act 159-2015 (“Act159”). We wished to clarify our discussion related to the sales and use tax (“SUT”) to be imposed on services rendered by non-resident persons to persons located within Puerto Rico particularly in light of issuance by the Puerto Rico Department of the Treasury of Administrative Determination Number 15-21 of October 5, 2015 (“AD 15-21”).

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