Read our insights

The Puerto Rico Treasury Department has determined that the type of report that must be attached to the Income Tax Return at the time of its submission, to comply with Section 1061.15 of the Puerto Rico Internal Revenue Code of 2011, will be an Agreed Upon Procedures.

With the enactment of Act 40-2020, the requirements of submitting financial statements with the income tax returns for the years ending after December 31, 2019 have significantly changed. By increasing the volume of business threshold to $10,000,000, many businesses face the question to audit or not to audit.

Time to look ahead and consider some important tax planning aspects for the upcoming tax filing season.

An estate planning is not only planning for life after you die; it is also about planning for what happens with you and your property if you become disabled. Review these four changes brought in by the new Puerto Rico Civil Code that could affect your estate planning.

The Puerto Rico Department of State has issued Administrative Orders related to the postponement to filing of 2019 Annual Report and amnesty period.

The Governor of Puerto Rico has signed into law Act 107-2020, known as the Puerto Rico Municipal Code (“Municipal Code”) with the purpose of integrating, organizing and updating the existing legislation for the organization, administration and operations of the municipalities in Puerto Rico. Read more.

The need of businesses to continue operating remotely as a result of COVID 19 has brought some tax implications for foreign taxpayers and their Puerto Rico employees when providing their services from Puerto Rico.

For decades Puerto Rico has been known to be a significant player in the global manufacturing sector. Let’s look at what have been the facts and today’s current scenario.

The physical presence test for bona fide residents of Puerto Rico for 2020 will prove to be a different one due to COVID-19 travel and related disruptions.

The Puerto Rico Treasury Department issued Administrative Determination 20-19 with the purpose of clarifying the mechanism available for merchants engaged in the construction industry to request a change in their accounting method to Cash Basis for purposes of the Puerto Rico Sales and Use Tax.

On August 5, 2020, the Municipal Revenue Collection Center or “CRIM”, issued Administrative Order 2020-12 with the purpose of extending the payment term for the first quarter of personal property estimated tax from August 17 until September 15, 2020.

The Puerto Rico Treasury Department issued Administrative Determination 20-18 with the purpose of adding two days to the first sales and use tax free period for the purchase of school uniforms and materials for the fiscal year 2020-2021.

Hints to be better prepared for the next tax season. The do’s and don’ts and why you need to think of your taxes year-round.

The Puerto Rico Treasury Department (“PRTD”) recently issued Administrative Determination 20-17 (“AD 20-17”) with the purpose of postponing the effectiveness of the commercial lease exemption requirement.

Act 57 signed on June 14, 2020 established an exemption from the special Sales and Use Tax (“SUT”) of 4% applicable to business to business services and designated professional services for the months of April, May and June of 2020 (“Temporary Period”). Recently, the Puerto Rico Department of the Treasury (“PRDT”) issued the Circular Letter of Internal Revenue 20-33 (“CC 20-33”) establishing the applicability of the 4% SUT exemption based on the merchant's accounting method.

On March 24, 2020, the Puerto Rico Treasury Department issued Administrative Determination 20-10 allowing the application of refunds and overpayments from certain type of taxes, against debts from another type of tax.