Puerto Rico (PR) Governor Pedro Pierluisi, on June 30 enacted Act 52-2022, to amend the PR manufacturing tax incentives laws and provide a framework for electing out of the income and excise tax regimes enacted under Act 154-2010, which applies to certain nonresident foreign entities. To achieve this transition, Act 52-2022 allows PR manufacturing businesses holding tax decrees under the various PR tax incentives laws to amend their tax decrees to increase their applicable PR corporate income tax rates to 10.5% (15% if certain conditions are met), in exchange for relieving such PR manufacturing businesses’ foreign related parties from being subject to the Act 154-2010 income and excise tax provisions.
Source PwC
