Puerto Rico Tax Proposal Would Extend Hefty Benefit to Locals

Puerto Rico Gov. Pedro Pierluisi unveiled a new tax relief plan on Thursday that his administration said would result in savings of $472.2 million for individuals and corporations.

But the proposal also seeks to extend a contentious tax benefit to local investors.

The Democratic governor’s tax relief plan includes the extension of certain benefits of the “individual investor” program—commonly known as Act 22—to local investors. The tax break, enacted in 2012, has attracted wealthy individuals with the promise of legally avoiding US federal income tax. Once established as residents of Puerto Rico, these individuals are subject to a 4% ...