Stuck Between US and OECD, Puerto Rico Seeks Path on Minimum Tax

Puerto Rico missed its chance to enact legislation adopting the OECD’s global minimum tax this year, and any chance it could in the future hinges on satisfying both the international organization’s rules and concerns from the US Treasury Department.

The island wants to adopt a 15% additional tax on multinational corporations with revenue over 750 million euros ($812 million). The tax, also known as Pillar Two of the Organization for Economic Cooperation and Development’s international tax agreement, is meant to reduce tax competition among nations and prevent profit shifting from high-tax to low-tax jurisdictions.

Officials will have to wait until ...