More Than 300,000 Businesses in Puerto Rico

According to Treasury Secretary Juan Carlos Méndez "Nobody in Puerto Rico could have imagined the Treasury Department would register more than 300,000 businesses." Who indeed! This new perspective of Puerto Rico business is a result of the new Sales and Use Tax (IVU, for its acronym in Spanish), which required all businesses to register with the Treasury Department. Business owners faced a widely advertised penalty for not registering before November 15, 2006. All in all, the process to register took place over the course of three and a half months. The number of registrations more than doubles the originally projected 100,000 to 150,000 registrations.

Personally, I had to register as an independent consultant. In recent years I have worked for myself "por mi propia cuenta" as an independent consultant providing professional services. So while I registered, I really wouldn't consider myself a business. In my opinion, one of the biggest explanations for the under estimated
registrations is due to thousands of people just like me. In previous years they worked as independent consultants and filed taxes as individuals. "No economist, census or government agency (federal or local) had any idea of the magnitude of the economy (formal and informal) out there," added Méndez. No one indeed! But I guess it all depends on your definition of a business. Regardless we here at Dó are happy to see such a large economy in Puerto Rico, no matter how you define it. Now how do we get our hands on that list of businesses?

How do you like my illustration (picture on right) of how the Puerto Rican government feels about the # of business registrations?

Flickr Creative Commons Contributor Today: greggoconnell