On 10 December 2018, Puerto Rico Governor Ricardo Rosselló signed into law Bill No. 1544 as Law No. 257 of 10 December 2018.
Under the reform bill, the regular corporate tax rate has been reduced from 20% to 18.5% starting from taxable year after 31 December 2018. Moreover, in the case of taxpayers whose business volume is $3MM or more, the tax rate will be 23%.
The bill introduced new rules for the determination of a controlled group, which generally includes a 50% ownership of one entity by another or 50% common ownership by a third entity.
