Sunday, October 21, 2018

Puerto Rico gov: CFCs should be addressed separately from tax reform

By on October 9, 2018

SAN JUAN – Gov. Ricardo Rosselló Nevares said Tuesday that Senate President Thomas Rivera Schatz’s proposal to include changes for controlled foreign corporations in the Tax Reform is an issue that should be dealt with in another measure.

“The Tax Reform has a series of main pillars, reducing the IVU [Spanish acronym for sales-and-use tax] on prepared foods to 7 cents; reducing tax rates, both for individuals and corporations; eliminating the business-to-business tax, which will be very important now with the reconstruction of Puerto Rico; and to add what would be the bonus to the worker, the Earn Income Tax Credit,” he added.

Rivera Schatz recently argued that for tax reform the tax on foreign corporations should be examined as a measure to generate more revenue.

“That is not contemplated in the Tax Reform,” the governor replied to questions from the press.

“I gladly welcome that discussion, but that sets aside what the Tax Reform is,” the governor said. “Apart from that, there are no other considerations.”

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