Think tank: Global Minimum Tax could generate $3.8 billion for PR

By The Star Staff

Puerto Rico could generate up to $3.8 billion annually by adopting the Global Minimum Tax (GMT), according to a study by the think tank Open Spaces (EA by Spanish its Spanish initials).

The report analyzes the impact of a minimum rate of 15% and the risks and opportunities it entails for the island.

“It is crucial to adopt legislation that allows Puerto Rico to capture the money that would otherwise go to the coffers of other countries,” said Daniel Santamaría Ots, EA’s director of research, in a written statement.

The GMT, implemented by more than 140 jurisdictions, establishes that corporations with revenues greater than 750 million euros pay a minimum rate of 15%, also affecting subsidiaries in Puerto Rico starting in 2025.

Santamaría Ots noted that, currently, multinationals pay an effective tax rate of 2.43% in Puerto Rico, and if the GMT is not implemented, other countries could claim the difference, resulting in a significant loss for the island.

The report, titled “The Global Minimum Tax and Its Effects on Puerto Rico: A Window of Opportunity,” seeks to provide transparency and promote an open discussion about the GMT, its benefits and risks, and how it could help diversify Puerto Rico’s economy.