New provides relief to small businesses
Small businesses that make more than $50,000 and less than $250,000 will be exempted from paying business privilege tax under a newly signed law titled Small Business Recover Act to Give Pandemic Relief.
Introduced by Sen. Joe S. San Agustin, Bill 323 is now Public Law 35-90. The law also provides relief to businesses "that make more than $250,000 but less than $500,000," which will only remit tax payments at 3 percent to the Department of Revenue and Taxation.
“I am grateful for Gov. Leon Guerrero and my colleagues’ support and belief that we must work together in helping our businesses recover from the devastation brought on by this pandemic. It has not been easy for any of our island’s businesses, but we felt it was necessary to provide some form of assistance that we hope, would trickle to employers re-hiring their employees and reopening their doors to serve our island community,” San Agustin said.
This provision is applicable to qualifying businesses retroactive to Jan. 1, 2020 and expires on June 26, 2022. Upon expiration, the thresholds will return to its previous amounts.
“I look forward to more legislation that will support our businesses- big and small. This law is proof that we can work together for the benefit of all our people. Our business should be helping to keep businesses in business. Our work in helping our island recover is just beginning and I’m confident that we will overcome these challenges as we always do, together,” San Agustin added.