Public has until Oct. 10 to submit comments on global minimum tax

By The Star Staff

The island Treasury Department has given the private sector, academics and the public at large until Oct. 10 to submit comments on the possible implementation of the GloBE Rules in Puerto Rico.

On Sept. 23, the Treasury Department opened a public consultation on the impact of the Pillar Two Rules in Puerto Rico.

The GloBE Rules are slated to be incorporated in local tax legislation to ensure that multinational entity groups (MNE Groups) with annual revenues of $830 million or more are subject to a minimum level of taxation of 15% regardless of the jurisdictions where they operate. MNE Groups operating in Puerto Rico under tax incentive programs such as Act 135-1997, Act 73-2008 and Act 60-2019, which generally provide for effective tax rates below 15% pursuant to individual tax grants, are bound to be impacted with additional taxation on their Puerto Rico operations.

For the past year, several MNE Groups have been urging the Puerto Rico government to develop a plan to address the impact the implementation of the Pillar Two Rules in several jurisdictions will have on their Puerto Rico operations and the Puerto Rico industrial development program.

This public consultation indicates that inaction is not an option, and feedback from stakeholders, private sector organizations, advisers, academics and the public in general on the impact of the Pillar Two Rules in Puerto Rico is requested.