Pharmaceutical Industry:

Tax Benefits of Operating in Puerto Rico

GGD-92-72BR: Published: May 4, 1992. Publicly Released: May 14, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information about tax benefits that the pharmaceutical industry obtained from operating in Puerto Rico in the 1980s.

GAO found that: (1) the pharmaceutical industry received a large share of tax benefits from section 936 of the Internal Revenue Code compared to the number of jobs directly created and the amount of compensation the industry created; (2) tax benefits that the pharmaceutical industry received per employee were three to four times greater than those received by the industry with the next greatest amount of benefits; (3) industry representatives stated that other such employment-related information as the number of jobs created in companies servicing pharmaceutical corporations needs to be considered in evaluating the benefits of section 936; (4) individual pharmaceutical companies differed markedly in the level of taxes they saved by operating in Puerto Rico; and (5) 17 of the 21 most frequently prescribed drugs in the United States in 1990 were authorized for manufacture in Puerto Rico.

Sep 16, 2020

Feb 25, 2020

Dec 30, 2019

Oct 10, 2019

Oct 2, 2019

Sep 25, 2019

Sep 11, 2019

Aug 15, 2019

Jul 30, 2019

May 23, 2019

Looking for more? Browse all our products here