What is the story about?
What's Happening?
Puerto Rico is advancing its Incentives Code (Act 60-2019) by introducing a Certified Professional designation. This initiative aims to enhance the administration and auditing of tax-exemption decrees. Certified Professionals, who must be attorneys or certified public accountants, will assist businesses in compliance with Act 60. The Department of Economic Development and Commerce (DDEC) is expected to issue regulations defining the qualifications and duties of these professionals. This development is anticipated to streamline compliance processes and improve transparency in Puerto Rico's incentives ecosystem.
Why It's Important?
The introduction of Certified Professionals under Act 60 is crucial for improving the efficiency and reliability of Puerto Rico's incentives framework. By decentralizing compliance verification, the DDEC can focus on oversight and enforcement, potentially reducing application backlogs. This move is expected to enhance investor confidence and attract more businesses to Puerto Rico, boosting the local economy. The formal recognition of Certified Professionals also professionalizes the compliance process, ensuring that filings are accurate and carry official standing.
What's Next?
The DDEC is expected to release regulations detailing the certification process for professionals. Businesses and practitioners should prepare for these changes by training teams and developing compliance templates. Once implemented, Certified Professionals will play a key role in ensuring that decree holders meet their commitments, potentially leading to increased regulatory predictability and reduced processing times for investors.
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