Puerto Rico Treasury opens dialogue on execution of Global Minimum Tax-Pillar 2
The deadline for submitting comments is Oct. 10.
The Puerto Rico Treasury Department has announced the start of the public consultation process for the implementation of the Global Minimum Tax (GMT) under Pillar 2 of the Organization for Economic Cooperation and Development (OECD).
The GMT is an initiative promoted by the OECD aimed at preventing unfair competition between jurisdictions due to tax differences and ensuring that multinational companies pay a minimum of 15% in the countries where they operate, said Treasury Secretary Nelson J. Pérez.
“This type of consultation has already been used in countries and territories of the European Union, as well as in other jurisdictions such as New Zealand and Singapore. As part of the process to design the tax legal framework within the context of the [GMT] initiative, the objective of this document is to gather input from different sectors with the purpose of establishing a legal framework that is viable and effective for Puerto Rico,” Pérez said.
The agency is evaluating options for the possible implementation of the GMT rules, considering principles such as making Puerto Rico a competitive destination for investment; safeguarding the island’s taxing rights; complying with international standards; establishing a long-term solution to provide certainty for taxpayers and the government; and adhering to the principle of neutrality under the Puerto Rico Oversight, Management and Economic Stability Act.
For the public discussion process, the department has established a special link on its website, which contains a document related to the GMT imposition process, the Puerto Rico scenario, and consultation questions.
The deadline for submitting comments is Oct. 10. Comments must be sent via email.
