Notwithstanding, if the corporation submits audited financial statements, an agreed upon procedure, or a compliance attestation report issued by a Puerto Rico CPA certifying the expenses as ordinary and necessary with its income tax return, the corporation may claim the same deductions it claims for regular income tax for purposes of computing its income subject to AMT, subject to AMT limitations on depreciation and NOLs, among others. In this regard, some of these expenses must be reported in informative returns to be deductible. Such minimum tax is subject to an 18.5% flat rate, or 23% in the case of taxpayers with gross proceeds of USD 10 million or more.Ī corporation is not allowed to claim the same deductions it claimed for regular income tax purposes. Instead, a corporation is allowed to claim a limited amount of deductions such as wages, rents, utilities, marketing, depreciation, insurance, health plan contributions, charitable donations, bad-debts, and certain taxes. The AMT includes various AMT adjustments in order to calculate the tentative minimum tax. The determination of the applicable surtax rate is made on a consolidated basis for controlled groups and related companies, so the net taxable income of all the entities subject to tax in Puerto Rico within said groups has to be combined for the determination of the applicable surtax rate.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |