SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported):
August 21, 2008
PHARMA-BIO
SERV, INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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0-50956
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20-0653570
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
Incorporation)
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File
Number)
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Identification
No.)
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Pharma-Bio
Serv Building
Industrial
Zone Lot 14,
Barrio
Higuillar, Dorado, Puerto Rico
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00646
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
(787) 278-2709
NONE
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following
provisions:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
On
August
14, 2008, Pharma-Bio Serv, Inc. (the "Company") and its subsidiary Pharma-Bio
Serv PR, Inc., filed the Acceptance of Tax Exemption Decree for a Grant of
Industrial Tax Exemption (“the Grant”) from the Puerto Rico Industrial
Development Company pursuant to the terms and conditions set forth in Act No.
135 of December 2, 1997, as amended. The Grant provides relief on various Puerto
Rico taxes, including income tax, mostly for the Company's new microbiological
testing facility and service activities outside of Puerto Rico. The Grant is
effective as of September 1, 2007 and covers a ten year period. Pursuant to
the
Grant provisions, among others, the Company must comply with a minimum
employment threshold in order to maintain the tax benefits allowed.
In
May
28, 2008 a new tax incentive law (“Act No. 73”) was enacted in Puerto Rico. The
Company is considering whether to convert the Grant to the provisions of Act
No.
73. If granted, the Company might enjoy additional exemptions of various
taxes and certain tax credits.
Even
with
Act No. 135 and Act No. 73, the income that the Company earns from services
rendered outside of Puerto Rico might also be subject to the taxes in the
jurisdictions where the services are rendered.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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PHARMA-BIO SERV, INC. |
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| Date: August
21, 2008 |
By: |
/s/ Elizabeth
Plaza |
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Elizabeth
Plaza, Chief Executive Officer
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