Puerto Rico’s Treasury Department released a new income tax return for businesses that earn income under various tax exemption incentive decrees. Previously, different tax return forms were needed depending on specific tax exemptions, which included industrial development, tourism development, green energy, and more. The Treasury Department decided to consolidate seven different return forms into one form, Form 480.3 (II), for tax periods starting on or after 1 January 2023. This initiative is expected to simplify the filing and processing of the forms and reduce costs. The new form’s English and Spanish versions are available on the Treasury website and must be filed electronically. Additionally, Form 480.3 (II) is for corporations and limited liability companies taxed as corporations that generate income under the tax exemption decree. Taxpayers classified as passthrough entities must utilize Form 480.2(EC) for exemption purposes.