02 June 2016 Law firm clients: Tax law developments in Puerto Rico and Chicago likely to affect law firms Law firms doing business in Puerto Rico should be aware that Puerto Rico's legislative assembly has approved a bill to repeal the value added tax (VAT), overriding the governor's veto. The VAT will no longer be implemented on June 1, 2016. For the foreseeable future, merchants doing business in Puerto Rico will continue complying with the existing sales and use tax mandate. See Tax Alert 2016-932 for details. Chicago extends voluntary disclosure applications deadline for certain nonpossessory computer leases to June 30 The Chicago Department of Finance (Department) has announced that it will continue to accept applications through June 30, 2016, from taxpayers applying to participate in the city's modified voluntary disclosure program (VDP). Last year, the City of Chicago offered a modified VDP to allow taxpayers to become compliant with the city's law on the imposition of the Personal Property Lease Transaction Tax (Transaction Tax) on certain nonpossessory computer leases. Initially, taxpayers needed to apply for the modified VDP before January 1, 2016; that date has now been formally extended to June 30. Law firms that may be subject to this transaction tax could benefit from this extension. For details, see Tax Alert 2016-934.
Document ID: 2016-0960 | |||||||||
