August 4, 2021

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Colegio CPA supports initiatives and measures to boost manufacturing

Puerto Rico is recognized as a global manufacturing center of excellence

photo: Visualhunt

San Juan – The registration of the College of Authorized Public Accountants (CCPA) of Puerto Rico, approved a resolution on Monday, through which they request their Governing Board to support and support initiatives and measures that promote the manufacturing industry in Puerto Rico, as well as the reactivation of the island’s pharmaceutical sector.

The resolution takes place at the same time that various measures are being evaluated in the Federal Congress to bring the pharmaceutical and manufacturing industry to the island, and in view of the possible limitation to the accreditation of excise duty to foreign companies.

“Even though the issue of the accreditation of the tax to foreign companies and the legislative proposals at the federal level on the issue of the repatriation of manufacturing are different issues, it is undeniable that both issues are intrinsically tied to the economic development of Puerto Rico and have extreme tangency in the historical moment that we live ”, said the CPA, Rosa Rodríguez Ramos, president of the CCPA in written communication.

The CPA also stated that “the College, in its vision of always seeking to promote the socio-economic development of Puerto Rico, makes its resources available to the Government of Puerto Rico, as well as the different work committees —composed by CPAs with vast experience and extraordinary capabilities— to assist in the analysis, modeling and configuration of potential solutions to this pressing situation. “

Thanks to its historical trajectory, Puerto Rico is already recognized as a global manufacturing center of excellence, particularly of pharmaceutical products.

Several groups from the patio and from the United States, including the CCPA, have called for the Federal Government to address the national security problem through tax mechanisms that make Puerto Rico economically attractive, in such a way that operations return to American soil. manufacturing that at one point left.

At present, there are already several bills under evaluation by the Federal Congress that present alternatives for this purpose.

Regarding the proposed changes to the regulations of the Internal Revenue Code of the Federal Department of the Treasury – which could affect the federal accreditation of the contributions paid in Puerto Rico under the regime of Law 154 by certain multinational companies with operations in the island – the president of the CCPA described as “positive and encouraging” the progress, and the commitment obtained by the federal agency, which reported the Secretary of the Department of Finance, Francisco Parés, on the most recent conversations he held on the proposed regulation and the impact to Puerto Rico.

Parés recently expressed that it is equally important to address the challenge presented by designing and approving a new income tax regime that the Government is studying to replace or substitute in an orderly manner the taxation at the local level, how to get the Federal Government Implement the announcement regarding increasing the number of taxpayers on the island that carry out manufacturing of medicines and medical devices.

“We recognize the diligence, responsibility and knowledge that Secretary Parés shows when addressing these issues.”

The CCPA urges the Government of Puerto Rico to continue taking affirmative steps, assigning it the highest priority, towards the search for an adequate solution and to put an end to the uncertainty surrounding the accreditation of this contribution and its possible impact on the collections of the country.

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