CPAs call for local adoption of ‘TrumpAccounts’ and comprehensive tax reform

Former Puerto Rico Certified Public Accountants Association President David Rodríguez

By THE STAR STAFF

The Puerto Rico Certified Public Accountants Association (CCPA by its initials in Spanish) approved two major policy resolutions during its annual convention this past weekend, urging the government to adopt federal-style “Trump Accounts” locally and to pursue an overhaul of the tax system.

In the first resolution, the organization called on the Legislature and Gov. Jenniffer González Colón to enact legislation enabling Puerto Rico residents to benefit from the new federally created “Trump Accounts,” established last year under the U.S. Internal Revenue Code. The measure seeks to harmonize Puerto Rico’s tax treatment of those accounts with federal provisions.

The CCPA emphasized that Puerto Rico must create a contributory framework that mirrors federal benefits, including eligibility for the $1,000 federal initial contribution, local tax exemption on investment gains, and the ability for employers to make contributions to these accounts.

“More than reacting to federal changes, Puerto Rico must anticipate them and create a clear, coherent and administratively viable framework,” former CCPA President David Rodríguez said. “As a profession, we are ready to contribute our technical expertise to help craft legislation that protects taxpayers and works for our tax agencies.”

In a second resolution, the CCPA formally adopted its position in favor of comprehensive tax reform. The organization urged policymakers to consider transitioning to a consumption-based tax system, to evaluate a reduced flat tax shared among individuals and corporations, to exempt passive income from taxation, and to eliminate the inventory tax.

The group also committed to taking a proactive leadership role in public and legislative discussions on tax reform.

“Puerto Rico needs a serious and in‑depth conversation about its tax system,” Rodríguez said. “We must evaluate structural alternatives that promote investment, savings, productivity and economic growth.”

As part of its annual convention, the CCPA hosted its University Chapters Leadership Conference, which featured the governor’s participation. Students and emerging accounting professionals had the opportunity to engage directly with the governor and hear her perspectives on Puerto Rico’s economic challenges and opportunities.