As reported earlier, Puerto Rico has proposed broad tax reform including changes in corporate and individual income tax. The changes for individual income tax include a reduction in the number of individual income tax brackets, and an overall reduction in rates and a greater exemption. The proposed brackets and rates are as follows:

• up to USD 40,000 - 0%
• USD 40,001 up to 125,000 - 15%
• USD 125,…