Senate Bill 60 (“SB 60”) was signed by the Governor and enacted into law. SB 60 amends Act 20-2012, also known as the “Act to Promote Export Services” (“Act 20”) to phase out the Base Period Income on tax exemption decrees over a four (4) year period.
Article 4 of Act 20 is amended to adjust the Base Period Income by reducing said amount by 25% annually, until the same is reduced to zero (0) for the fourth taxable year in which the terms of the decree of the exempted business under Act 20 apply (the “Phase-Out”).
The Phase Out will only apply to tax exemption decrees granted after June 30, 2017.
By Boris Jaskille, Esq. Ferraiuoli LLC
This article has been prepared for information purposes only and is not intended as, and should not be relied upon as legal advice. If you have any questions or comments about the matters discussed in this notice, wish to obtain more information related thereto, or about its possible effect(s) on policy or operational matters, please contact Ferraiuoli LLC.