CPA Association supports initiatives and measures to boost manufacturing
By The Star Staff
The membership of the Certified Public Accountants Association of Puerto Rico has approved a resolution asking their governing board to support initiatives and measures that promote manufacturing in Puerto Rico, as well as the reactivation of the island’s pharmaceutical sector.
The resolution takes place at the same time that various measures are being evaluated in the U.S. Congress to bolster the pharmaceutical and manufacturing industries on the island, and amid the possibility that the 4 percent excise tax firms pay locally may no longer be accredited against U.S. taxes.
“Even though the issue of the accreditation of the tax paid by foreign companies and the legislative proposals at the federal level on the issue of the repatriation of manufacturing are different issues, it is undeniable that both issues are intrinsically tied to the economic development of Puerto Rico and have extreme tangency in the historical moment that we are living,” CPA Association President Rosa M. Rodríguez Ramos said in a statement Monday.
The CPA Association noted that in its vision of always seeking to promote the socioeconomic development of Puerto Rico, it is making its resources available to the island government, including its various working committees composed of certified public accountants with vast experience and extraordinary capabilities, to assist in the analysis, modeling and configuration of potential solutions to the current pressing situation.
“Thanks to its historical trajectory, Puerto Rico is already recognized as a global manufacturing center of excellence, particularly of pharmaceutical products,” Rodríguez Ramos said. “Several groups … including the Association have called for the federal government to address the problem of national security through tax mechanisms that make Puerto Rico economically attractive, in such a way that they return to American soil those manufacturing operations that at some point have left. At present, there are already several bills under evaluation by Congress that present alternatives for this purpose.”
Regarding the proposed changes to regulations in the federal Internal Revenue Code, which could affect the federal accreditation of the taxes paid in Puerto Rico under Act 154 by certain multinational companies with operations on the island, Rodríguez Ramos described progress and the commitment obtained by the federal agency as “positive and encouraging.”
Treasury Secretary Francisco Parés stated recently that it is equally important to address the challenge of approving a new income tax regime to replace in an orderly manner the imposition of the excise tax at the local level.
“We recognize the diligence, responsibility and knowledge that Secretary Parés shows when addressing these issues,” Rodríguez Ramos said.