P.R. Laws tit. 13, § 30001
The realities of the new century, the needs of the people of Puerto Rico and the evolution of a more competitive global economy call for a fair tax system. At present, a considerable number of taxpayers evade the responsibility to share in the financing of the operations of the Commonwealth of Puerto Rico. In addition, the system is complex, among other things, because of the many incentives and deductions that make tax evasion possible, thus reducing the efficiency of tax collections. In view of this situation, it is imperative to respond to the claim for the Government of the Commonwealth of Puerto Rico to implement a tax system that is fair, equitable, relatively simple and efficient in collections, and which stimulates the development of our economy.
The basic principles that should govern the Tax Reform to be conducted are:
(1) The tax system should be designed to reward employment and not to penalize work. It should be a system that does not burden the labor force unfairly.
(2) The tax system should be equitable, directed toward the expansion of the tax base, so that more Puerto Ricans contribute less, achieving an effective fight against tax evasion and reducing [the] underground and informal economy as much as possible.
(3) The tax structure should provide the necessary resources to render services to the people and at the same time remain in harmony with the public policy of incentives for economic development. Tax incentives should be directed toward a single purpose: economic development and the creation of permanent employment.
(4) The tax system should promote savings and grant incentives to local investments, mainly those that stimulate economic development.
(5) The Puerto Rican tax system should be competitive from the global point of view and at the forefront of the challenges entailed by the opening of international markets, including new technology.
History —Sept. 15, 2004, No. 323, § 2.