Puerto Rico cuts Sales Tax to 7%
Puerto Rico has announced on 2 April a new fiscal budget which includes plans to cut its Sales and Use Tax from 11.5% to 7%. The rate for professional services will be reduced to 3% from 4%. There are also cuts to the corporate and personal income tax rates.
The consumption tax rate cut is being funded by the withdrawal of a number of tax incentives. No implementation date has been provided, and the changes need to be first voted on by US territory’s legislature.
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