What's Happening?
Puerto Rico is advancing its Incentives Code (Act 60-2019) by introducing the Certified Professional designation, aimed at enhancing the administration and auditing of tax-exemption decrees. This initiative, authorized under Section 6060.03, empowers
the Department of Economic Development and Commerce (DDEC) to accredit qualified professionals, such as attorneys and certified public accountants, to assist exempt businesses. The designation is expected to streamline compliance processes and improve transparency within Puerto Rico's incentives ecosystem.
Why It's Important?
The introduction of Certified Professionals is significant for Puerto Rico's economic landscape, as it aims to improve the efficiency and reliability of tax-exemption decree administration. By decentralizing compliance verification, the DDEC can focus on oversight and enforcement, potentially attracting more investment to the island. This move could enhance investor confidence and stimulate economic growth, benefiting both local businesses and the broader Puerto Rican economy.
What's Next?
The DDEC is expected to issue regulations defining the qualifications and duties of Certified Professionals. Once implemented, these professionals will play a crucial role in preparing and certifying compliance reports, serving as intermediaries between businesses and the DDEC. Businesses and practitioners should prepare for the new system by training teams and developing compliance templates, while investors may seek counsel from likely certified professionals to streamline processes.
Beyond the Headlines
The Certified Professional system could set a precedent for other regions seeking to modernize their incentives administration. It may also foster a specialized community of legal and accounting professionals focused on compliance, enhancing professional accountability and transparency in Puerto Rico's economic framework.
