Puerto Rico Lawmakers Pass Key Corporate Tax Reform Bill

Puerto Rico’s House and Senate passed a critical bill late Wednesday that swaps out an expiring corporate excise tax for an income tax that officials say will preserve the island’s finances and pass muster with the US Treasury.

• House Bill 1367 will replace the excise tax, known as Act 154, that represents about 15% of all general fund revenue for the island
• The legislation passed without additional amendments, which had initially stalled its progress and led the Financial Oversight and Management Board to warn that it was fiscally unsound
• The government was worried that if Act 154 were allowed to ...