Read our insights

The Puerto Rico Treasury Department issued Administrative Determination 19-01 to clarify the effective dates of the amendments to the Tax Code brought in on December 2018.

Required businesses have the obligation to remit the sales tax in semi-monthly installments; however, those who fail to comply will be subject to the imposition of a penalty.

Pursuant to the Internal Revenue Code for a New Puerto Rico (the “Code”), taxpayers whose business year runs on a calendar basis have until the 15th day of April following the close of the calendar year to file the appropriate income tax return. Considering this, we turn our attention to the next major filings that must be kept in mind during the rest of the year.

The Puerto Rico Department of Treasury has released Circular Letter 19-08 establishing the filing deadlines for certain corporation income tax returns.

The Puerto Rico Department of Treasury has released Circular Letter 19-06 stating new guidance for individuals, corporations and LLCs on the filing of automatic extensions for income tax returns.

The Governor has enacted Act No. 6 of February 12, 2019, to assist the CRIM with the request of appraisal of real estate property.

Act No. 257 of December 10, 2018 introduced a significant change to the Puerto Rico Sales and Use Tax (“SUT”) by eliminating the SUT on: (i) designated professional services, and (ii) services rendered to other merchants by persons whose annual volume of business does not exceed $200,000. These provisions became effective on March 1, 2019.

The Puerto Rico Treasury Department has extended the filing date for the informative declarations

The Puerto Rico Treasury Department has issued a series of publications as a tax season update.

The House and Senate Bills, collectively, the “proposed Incentives Code” aim to overhaul the rules and procedures for the review, approval and assessment of tax incentives, by encouraging activities that result in a positive return on investment for Puerto Rico.

After several internal communications, between the Puerto Rico Treasury Department and the United States Treasury Department, they have agreed to amend the Employee Retention Tax Credit Implementation Plan in order to extend the deadlines to: (i) request the Employee Retention Benefit for employers affected by Hurricanes Irma and María (“the benefit”), and (ii) to file any related claims.

On December 31, 2018, the Puerto Rico Treasury Department issued Internal Informative Bulletin No. 18-24, to provide taxpayers guidance with regards to the partial tax withholding waivers for services rendered in Puerto Rico, in light of the agency’s publications prior to the enactment of Act 257-2018 (Puerto Rico Tax Reform) on December 10, 2018.

The Puerto Rico Treasury Department recently issued Internal Revenue Circular Letter 18-20 granting every eligible employer that filed the application for the Employee Retention Benefit on time, the opportunity to file a claim or make any adjustments or corrections to the original application of the benefit.

The Puerto Rico Treasury Department has issued Circular Letter 18-19 to establish the new procedures with respect to estate tax transactions.

While tax laws change frequently, our compliance and consulting teams are ready to help you understand Puerto Rico's complex tax system

Helping you from the inception of your business to establishing and running an accounting department in Puerto Rico