Quarterly return - tax withheld for Services Rendered

On April 4, 2019, the Department of the Treasury issued Circular Letter of Internal Revenue No. 19-10 to establish the filing requirement for the Quarterly Return of Tax Withheld on Payments for Services Rendered - Form 480.6 SP-1 to any person required to deduct and withhold tax on payments made for services rendered - 10% Withholding. 

In accordance with the Article 59 of Act No. 257 of December 10, 2018 (Act 257-2018), the quarterly return must be filed no later than the last day of the following month after quarters ending on March 31, June 30, September 30 and December 31 of each year.

In addition, Act 257-2018 amended the Section 1062.03 of the Code, to establish that those taxpayers who are required to make the 10% Withholding must remit it to the Puerto Rico Department of Treasury not later than the 15th day of the following month.

Effective for the quarter ended March 31, 2019, any person required to make the withholding of 10% must file the Form 480.6 SP-1.  However, in order to facilitate compliance and provide sufficient time to the withholding agents to collect all the necessary information to electronically file the Form 480.6 SP-1 for the quarter ended March 31, 2019, the due of Tuesday, April 30, 2019 will be postponed until Wednesday, July 31, 2019.

Therefore, both the quarterly returns for the quarter ended March 31, 2019 and the quarter ending June 30, 2019, must be filed no later than Wednesday, July 31, 2019.

Electronic preparation and filing of Form 480.6 SP-1 through SURI

1. Access your account at SURI.
2. Select the Tax Withholding for Services Rendered account that is available in the Accounts tab.
3. In the Periods Tab, select the period corresponding to the quarter for which the quarterly return will be submitted.
4. In the I would like section, click the File/Amend form link.
5. Follow the instructions of the system. Once you have completed all the required information, be sure to click Submit.

The Minimum Rule

The Department establishes a Minimum Quantity Rule for those withholding agents who have made withholding tax for less than $ 2,500 during a quarter.  In these cases, the 10% withholding may be submitted quarterly, without imposition of interest, surcharges or penalties for not having deposited the same monthly, as long as the filing of the Quarterly Return and the corresponding payment are made not later than the date established by law for the filing of the quarterly return.

The provisions of this Circular Letter have immediate effect.

Link - Pueto Rico Department of Treasury (Spanish version)

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