Overview
Ferraiuoli has a broad-based tax practice group that provides tax advice to clients on all major United States and Puerto Rico tax matters. Our attorneys provide advice to our clients in the development and implementation of effective tax planning strategies to minimize the tax costs of doing business in Puerto Rico and also provide critical assistance in complying with all applicable tax requirements under federal and Puerto Rico laws and regulations. Ferraiuoli has the experience, technical knowledge, and business background that is critical to provide advice and counseling to our clients on how to tackle the vast array of tax issues that affect companies with business operations in Puerto Rico. We pride ourselves on communicating clearly and executing transactions efficiently.
Our attorneys have been deeply involved in the design, documentation, and implementation of tax and corporate structures for our clients, allowing them to minimize costs, benefit from tax incentives and credits, and confidently expand their operations into other markets. We have also assisted numerous high net worth individuals in their personal tax, succession, estate, and asset protection planning.
In a constantly evolving business environment, the pace of change has made the efficient management of a business and understanding of the big picture and tax impact more complex than ever. Our Tax Department has consistently been able to navigate the ever-shifting regulatory landscape including managing tax uncertainty, the increasing demands for transparency, changes in the digital economy, and planning for changes in Tax Policy. We have continuously provided an integrated approach to help our clients make tax decisions with increased confidence, identifying new value, and aiding them to execute on opportunities that advance their business overall.
Most of our tax attorneys are certified public accountants and have business and government backgrounds that are critical to successfully advising clients on federal and local tax issues that affect companies operating in Puerto Rico.
Representative Matters and Transactions
- Represented several U.S.-based private equity funds in the development and implementation of tax efficient structure for the acquisition of a commercial real estate loan and REO portfolio from one of Puerto Rico’s local banks.
- Negotiated a private letter ruling with the Puerto Rico Treasury Department for the establishment of operations in Puerto Rico by a U.S. Real Estate Investment Trust (REIT).
- Acted as local tax counsel to the purchasers of $350 million of senior secured notes issued for the financing of a world-class P3 transaction involving Puerto Rico’s Luis Muñoz Marín International Airport.
- Advised multiple high-net worth individuals with structuring and implementing estate planning and asset protection strategies.
- Successfully negotiated and obtained government approval for tax exemption decrees and economic incentives grants issued under Act 60 and predecessor acts for manufacturing and industrial activities (including life sciences, R&D, tech, and recycling ventures), export services, agro-industries, and green energy projects, among others.
- Acted as tax advisor in the acquisition of various businesses in the hospitality and car dealership sectors.
Successfully transitioned tax exemption grantee from Act 154 to Act 52-2022. - Advised clients in the redemption of a majority shareholder in a multi-million transaction, achieving significant tax and cash flow benefits for the company and its redeemed shareholder.
- Advised multinational energy conglomerate in employee benefits acquisition and merger of tax-favored employer benefit programs for Puerto Rico and other Caribbean markets.
- Served as Puerto Rico exclusive employee and benefits matters counsel for international healthcare company in business separation of pharmaceutical and medical devices divisions into two separate Fortune 500 companies.
- Acted as counsel to various financial institutions in the design and implementation of procedures for compliance with all federal reporting and withholding requirements under FATCA for its Puerto Rico and U.S. branches.
- Served as local counsel for major financial services firm with recent ERISA fiduciary duties requirements and compliance matters for tax favored retirement products.
- Provided specialized guidance and services tailored to tax matters for organizations operating in the non-profit sector, including offering comprehensive assistance in navigating the intricate landscape of non-profit tax regulations, compliance, and strategic planning.
- Served as counsel in tax deficiency proceedings brought forth by the Puerto Rico Treasury Department in connection with retail sector clients.
- Served as counsel in municipal license tax (municipal gross receipt tax) controversy and litigation with 8 municipalities, as adverse parties, relating to whether municipal license tax is owed on each municipality or only one municipality.
- Advised client in the transfer of substantially all assets of its life sciences division at a global scale including Puerto Rico. Assisted with the due diligence process, the negotiation and drafting of the Local Asset Purchase Agreement and all other ancillary documents, leading to a closing during 2023.
- Grown as one of the top advisers for private equity transactions, assisting investors on the formation of and investment in private equity funds across various investment strategies. We represent the full range of investors, from first-time investors to the longest established investment firms in Puerto Rico.
Recognition
- Since 2012, Ferraiuoli’s Tax Practice Group has been ranked as one of the leading tax law groups in Puerto Rico by Chambers & Partners’ Global and Latin America Guides
