Local manufacturing companies subjected to the 4 percent excise tax imposed in January through Law 154 may want to breathe a sigh of relief, as the Internal Revenue Service has confirmed that they will be able to take a credit on their federal income tax returns for the amount paid in Puerto Rico.
If the government truly wants to help the economy move forward, aside from monitoring that all of the recently enacted reforms effectively serve their purpose, it will have to implement what private sector representatives on Thursday called a “credibility reform.”
Nearly 15 days after Law 154 — imposing an excise tax on sales by local subsidiaries to their foreign parent companies — went into effect, members of the Puerto Rico Manufacturers Association got a chance Friday state for the Legislative record their opposition to the measure.
Washington D.C.-based The Daily Caller on Tuesday zeroed in on the recently passed 4 percent tax on foreign corporations, saying it is has the makings of an "indirect bailout," as Fortuño administration officials seek to have the IRS allow affected companies to write off the new collective $6 billion business expense as a tax credit.
The U.S. Department of Treasury has yet to issue a decision on whether foreign companies doing business in Puerto Rico will be allowed to take a credit for the excise tax imposed through Law 154, which goes into effect this month.
No sooner had the local government signed off on a new law approving a 4 percent tax on controlled foreign corporations this week, that a stateside organization saw an opening to begin luring local manufacturing corporations to move north.
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