U.S. to End Foreign Tax Credit for Puerto Rico Excise Tax

According to recent reports, U.S. Treasury Secretary Steven Mnuchin has asked Puerto Rico's government to prepare a proposal for the end of the IRS' acceptance of a foreign tax credit (FTC) for Puerto Rico's excise tax. The 4% excise tax was introduced by Puerto Rico under Act 154 in order to tax purchases by multinational companies from their CFCs in Puerto Rico because, under tax agreements w…