Puerto Rico Planning Reforms including Several Tax Cuts

The Puerto Rican government is reportedly preparing legislation to be submitted to parliament that would cut the maximum business tax rate and eliminate the Sales and Use Tax (SUT) on B2B services. Particular changes include:

• A reduction in the standard corporate tax rate from 20% to 19%, and a reduction in the progressive corporate surtaxes so that the top effective rate would be reduced from 39% to 31%;
• A reduction in the SUT for certain professional B2B services from 4% to 3% in 2019 and…