The Governor of Puerto Rico, Honorable Ricardo Rosselló, recently signed into law Act No. 3 of 2017, also known as the Act to Address the Economic, Fiscal, and Budget Crisis to Guarantee the Operations of the Government of Puerto Rico (Act 3), and House Project 451 (HP 451), which extends the 4% excise tax, among other matters. This extension could impact pharma companies.
The 4% excise tax was previously introduced by Act 154 of 2010 (Act 154), which amended the Internal Revenue Code of 1994 (1994 Code). Act 154 imposed an excise tax over certain acquisitions made by related parties to certain manufacturing entities operating in Puerto Rico with at least $75M of gross receipts from the sales of manufactured or produced personal property and services.
Health Industry & Pharma Life Science Tax Leader, PwC US