Vázquez OK’s new law to help Puerto Rico economy face effects of COVID-19
Puerto Rico Gov. Wanda Vázquez signed Ley 57-2020, known as the “Complementary Law to Address the Effects of the COVID-19 Emergency on the Puerto Rican Economy” — a second package of economic measures that are part of the government’s plan to reactivate the economy, support businesses and protect workers.
On Sunday, she penned into law House Bill 2468, that calls for:
- Allowing to carry back prior year losses;
- Eliminate the 4% tax for services rendered to other merchants (known as B2B) for three months;
- Eliminate the tentative minimum $500 tax to corporations for 2019;
- Postpone the requirement of the Previously Agreed Procedures report prepared by a certified public accountant;
- Automatically extend for six months licenses and permits required to carry out commercial activity; and,
- Excluding the aid, subsidies or incentives granted at the local or federal level from the gross income and municipal taxes established in the decrees under the Incentive Code or previous incentive laws, namely, job creation and retention, gross income or volume of sales and investment in machinery and equipment, among other benefits.
“This signature gives legal strength to several administrative measures that we have established to benefit taxpayers, such as postponing the filing of informative returns, extending to all types of taxpayers, including conduit entities, the deadline to file their monthly income report, extend filing deadlines for the monthly sales and use tax and imports tax sheet, and establish a withholding relief for professional services, among others,” said the governor.
New Progressive Party Rep. Antonio “Tony” Soto — who co-authored the bill together with House Speaker Carlos “Johnny” Méndez and Rep. Víctor Parés-Otero — said this piece of legislation is mainly aimed at helping Puerto Rico’s small and medium-sized businesses to face the health crisis.
“Many of these measures certainly improve the cash flow of our small and medium-sized businesses and is a step in the right direction to ease the tax and compliance burden on our entrepreneurs,” Soto said.