Chambers & Partner’s 2015 Global and Latin America Guides ranks our Tax Practice Group as one of the leading tax law groups in Puerto Rico for good reason. Most of our tax attorneys are Certified Public Accountants and have business backgrounds that are critical to successfully advising our clients on the vast array of federal and Puerto Rico tax issues that affect companies with business operations within Puerto Rico.
As a full-service law firm, our broad-based tax practice group provides tax advice on all significant United States and Puerto Rico tax matters. Our experienced tax attorneys represent and provide counsel to top private and publicly traded companies and financial institutions ranging from local and foreign start-up ventures to Fortune 500 companies across all major industries.
Ferraiuoli’s Tax Practice attorneys are also knowledgeable and skilled in maximizing the tax benefits available under Puerto Rico’s multiple tax incentives and tax exemption laws and regulations. Our team has extensively advised clients in connection with:
- Act No. 73 of May 28 of 2008, known as the “Puerto Rico Development Economic Incentives Act”
- Act No. 20 of January 17, 2012, known as the “Export Service Promotion Act”
- Act No. 22 of January 17, 2012, known as the “Individual Investors Act”
- Act No. 27 of March 4, 2011 known as the “Puerto Rico Film Industry Economic Incentives Act”
- Act No. 83 of July 19, 2010 known as the “Green Energy Incentives Act”
- Act No. 74 of July 10, 2010 known as the “Tourism Development Act”
Our legal professionals bring with them strong professional relationships with all relevant local agencies that are involved in the administration of the Puerto Rico tax laws and in the evaluation and certification of Tax Credits and Grants, including the Puerto Rico Treasury Department, the Puerto Rico Tourism Company, the Puerto Rico Industrial Development Company, the Puerto Rico Film Commission, the Department of Economic Development and Commerce, the Office of Industrial Tax Exemption, and other local agencies and departments.
- Since 2012, the Tax Practice Group has been ranked as one of the leading tax law groups in Puerto Rico according to Chambers & Partner’s Global and Latin America Guides.
Representative Matters and Transactions:
- Represented a U.S. based private equity fund in the development and implementation of a tax efficient structure for the acquisition of a commercial real estate loan and REO portfolio from one of Puerto Rico’s local banks.
- Acted as counsel to a local bank in the design and implementation of procedures for compliance with all federal reporting and withholding requirements under FATCA for their Puerto Rico and U.S. branches.
- In a groundbreaking transaction and first-ever in Puerto Rico, acted as local tax counsel to the purchasers of $350,000,000 of senior secured notes issued for the financing of a world class Public Private Partnership (P3) transaction involving Puerto Rico’s International Airport.
- Advised multiple high net worth individuals in complying with all federal and local requirements related to their relocation to Puerto Rico under Act #22 and in the establishment of companies for the export of services from Puerto Rico under Act #20.
- Successfully negotiated and obtained Government approval for approximately $7,000,000 in Film Tax Credits, including groundbreaking transactions representing the first time that film incentives under Act #27 were granted to television programs, live recording projects, and live streaming projects.
- Acted as counsel to a multinational pharmaceutical company that had maintained operations within Puerto Rico for approximately 25 years in the process of executing a shutdown of Puerto Rico Operations, including the establishment and implementation of a strategy for minimizing the Puerto Rico tax costs/exposures related to the shutdown.
- Advised multinational client in the acquisition of educational institution in the city of New York in a $6MM transaction that included the Forbearance of approximately $12MM of target debt. Negotiated all tax and financial clauses related to the acquisition and forbearance documents and structured the transaction and related documents in order to avoid the imposition of federal or Puerto Rico taxes to client or its shareholders.
- Successfully negotiated and obtained government approval for tax exemption grants issued to multiple manufacturing facilities within Puerto Rico.
- Advised client in the redemption of a majority shareholder in a $20MM transaction. Successfully structured the transaction to achieve significant tax and cash flow benefits for the company and its redeemed shareholder.
- Assisted various local service providers to pharmaceutical multinational companies in obtaining tax exemption grants as key suppliers in the validation, quality control, project engineering and inspection industries.
- 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.
- Served as local counsel for major financial services firm with recent ERISA fiduciary duties requirements and compliance matters for tax favored retirement products.