Tax Alert

Tax returns and payments due dates postponed in light of COVID-19

To stop the further spread of COVID-19 (“Coronavirus”), the Puerto Rico Governor ordered the cease of operations of all governmental agencies until March 30, 2020. As a result, the Puerto Rico Treasury Department (“PRTD”) announced the postponement of various tax filing and payment due dates for the months of March and April 2020.

Section 6080.12(c) of the 2011 Puerto Rico Internal Revenue Code, as amended (the “Code”), empowers the Secretary of Treasury of Puerto Rico (“Secretary”) to extend the due date of the payment of all kind of taxes or the filing of any form or declaration required by the Code, for taxpayers that have been affected by a disaster officially declared by the Governor of Puerto Rico.

On March 12, 2020, the Puerto Rico Governor issued Executive Order No. OE-2020-020, in which declared a state of emergency with the purpose to stop the further spread of COVID-19. In addition, an island wide curfew was established through the issuance of Executive Order No. OE-2020-023. The same mandated all citizens to remain on their homes from 9:00 p.m. through 5:00 a.m. and limited the use of public roads and highways, for a 14-day period.  All governmental agency offices were ordered to cease operations immediately and remain closed until March 30, 2020.

To that end, the PRTD has issued Administrative Determinations No. 20-03 and 20-05 with the purpose of postponing the deadline to file certain forms and declarations along with the payment of certain taxes that are due during the months of March and April 2020 and establishes that no interest, surcharges or penalties will be imposed due to said postponement.

To such effect, the new due dates for the following tax returns and/or payment of taxes are as follows:

Type of Form

Original Due Date

New Due Date

Income Tax Return for Pass-Through Entities – Partnership, Special Partnership & Corporation of Individuals, Form 480.2(EC)

March 16, 2020 thru March 31, 2020*

 

April 15, 2020

Employees Owned Special Corporation Informative Tax Return, Form 480.2(CPT)

April 15, 2020

May 15, 2020

Revocable Trust or Grantor Trust Informative Return, Form 480.6F

March 31, 2020

April 15, 2020

Corporation Income Tax Return, Form 480.2

April 15, 2020

May 15, 2020

Individual Income Tax Return, Form 482.0

April 15, 2020

 

May 15, 2020

Income Tax Return for Exempt Businesses under the Puerto Rico Incentives Programs, Forms 480.3(II)C, 480.3(II)DI, 480.3(II)DT, 480.3(II)EV & 480.3(II)LE

 

April 15, 2020

May 15, 2020

Monthly Sales & Use Tax Return, Form SC 2915**

Municipal Monthly Sales & Use Tax Return

 

March 20, 2020

April 20, 2020

Bond with the PRTD

March 15, 2020 thru March 31, 2020

April 30, 2020

Internal Revenue Permits & Licenses

March 15, 2020 thru March 31, 2020

April 30, 2020

*Includes returns with an original due date from February 12 through February 24, 2020 that were extended until March 16, 2020, through the issuance of Informative Bulletin (“IB”) No. 20-02.

**The PRTD will not impose penalties for non-compliance with the bi-weekly SUT payments corresponding to the month of March 2020, as long as the total SUT due for said month is paid with the filing of the monthly SUT return for said period.

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The PRTD has postponed the filing due date by one month starting on its corresponding original due date, for all other returns, declarations and forms not mentioned above,. The corresponding payment has also been postponed by one month. This postponement applies to any other return, payment and/or deposit with an original due date between March15, 2020 and April 15, 2020.

Furthermore, due dates for estimated tax payments have also been postponed. Pass-Through entities that had until March 16, 2020 to submit the first installment of estimated tax payments corresponding to the 2020 taxable year, will have until Wednesday, April 15, 2020 to submit such payment. Every other taxpayer, that had until April 15, 2020 to submit the first installment of estimated tax payments corresponding to the 2020 taxable year, will have until Friday, May 15, 2020 to submit it.

In addition, the PRTD issued the IB 20-08 to extend the filing due date of all Informative Returns with a due date of March 31, 2020 pursuant to IB 20-05. Taxpayers will have until Wednesday, April 15, 2020 to submit such returns without the imposition of any penalty. The returns may be filed through the Unified Internal Revenue System platform (“SURI”) which will continue to operate during this time.

With regards to the 2019 Corporate Annual Report, the Puerto Rico Department of State recently announced the postponement of its corresponding due date. All Annual Reports are now due May 15, 2020 instead of its original April 15, 2020 due date. Extension Requests for the filing of the Annual Report extend the due date until June 15, 2020. Extension Requests may be filed by making an advance payment for your Annual Report before May 15, 2020. Additional Extensions may be filed and paid with term July 15, 2020.

Kevane Grant Thornton will continue to work remotely during this time. Please contact our Tax Department should you require additional information regarding this or any other tax issue. We will be glad to assist you.