Hacienda reports stable corporate collections after the Ley 52 tax transition

Puerto Rico Department of Hacienda acting secretary Nelson J. Pantoja reported that collections from income tax on controlled foreign corporations (CFCs) remained solid and stable after the transition to the Ley 52 of 2022 framework was completed.

The legislation allowed multinational manufacturing parent companies located on the island to migrate voluntarily from the former 4 percent excise of Ley 154 of 2010 to an alternate income-tax regime with withholding at source, eligible for tax credits at the U.S. federal Treasury.

Acting secretary Nelson J. Pantoja noted that the stability in these corporate collections, which exceed $2,000 million a year, safeguarded the central government's principal source of General Fund tax revenue. The Fiscal Oversight Board, headed by Robert F. Mujica Jr., recognized the success of the tax-transition mechanism in guaranteeing budget sustainability.

Source: Caribbean Business. https://caribbeanbusiness.com/hacienda-reporta-recaudos-corporativos-estables-ley-52-transicion/