By: Yadira Portalatín-Méndez, CPA, Esq. & Janira Beltrán Sellés, Esq.

On January 7, 2020 the Governor of Puerto Rico issued Executive Order OE-2020-01 declaring Puerto Rico in a state of emergency due to the earthquake of January 7, 2020 and the subsequent aftershocks.  The Department of Treasury issued Circular Letter 20-02 on January 8, 2020 to postpone various due dates, as follows:

• Returns, declarations and forms related to payroll taxes and withholdings, estimated income tax payments, including the last installment for individuals for tax year 2019 due in between January 7 and January 30, 2020 were postponed to January 31, 2020.
• Income tax returns, including related forms and extensions due on January 15, 2020 were postponed to March 16, 2020.
• Monthly Excise and Monthly Sales and Use Tax on Imports, including the corresponding payment due on January 10, 2020 are postponed to January 31, 2020.
• Monthly Sales and Use Tax Return due on January 20, 2020 is postponed to January 31, 2020.
• The first installment of the biweekly sales and use tax payment due on January 15, 2020 is postponed to January 31, 2020.

In addition, Administrative Determination 20-01 was issued on January 9, 2020 establishing an exemption on sales and use tax on prepared foods effective immediately and until January 31, 2020.  The exemption is applicable to prepared foods acquired by a natural person located in PR. Prepared foods includes carbonated beverages and bakery goods and sweets (defined in Section 4010.01 of the Puerto Rico Internal Revenue Code, as amended).  However, alcoholic beverages are not included in the exemption.

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This publication is a summary of recent pronouncements referred to herein and is not intended to substitute legal advice.  We encourage you to contact us or your tax advisor if you have any questions or need assistance regarding any of the matters presented herein.  An attorney-client relationship with Pellot-González, P.S.C. cannot be formed by reading or responding to this memorandum.  Such a relationship may be formed only by express agreement with Pellot-González, P.S.C.