By: Yaritza Portalatín-Méndez, Esq. & Janira Beltrán-Sellés, Esq.
Considering the Government Shutdown and Curfew mandated by Executive Order 2020-023, the Puerto Rico Department of Treasury has issued some additional extensions and determinations that modify some of the extensions outlined in Tax Headline 2020-02.
We hereby summarize the changes:
|
Tax Event, Form or Payment Due |
Extended Due Date |
|
| Income tax Returns with due date or extended due date of March 15, 2020, including any payment that must be included with these returns. This includes Returns that were previously extended and that were due on March 16, 2020. | June 15, 2020 | |
| Income tax Returns with due date or extended due date of April 15, 2020, including any payment that must be included with these returns. | July 15, 2020 | |
| Tax Returns with due date or extended due date of May 15, 2020 or June 15, 2020, including any payment that must be included with these returns. | July 15, 2020 | |
| 2019 Informative Declarations | May 15, 2020 | |
| Other Returns, forms & related payments with due date of March or April of 2020. | Same day of original due date but during the month of June of 2020. For example, if due on March 15, 2020 it will now be due on June 15, 2020. | |
| Other Returns, forms & related payments with due date of May or June of 2020. | Same day of original due date but during the month of July of 2020. | |
| Prepared foods are temporarily exempted from sales and use tax. The exemption is not applicable to alcoholic beverages, but includes carbonated beverages and any combination of flour, sugar or any mixed ingredients to be sold as a single product, as long as they are usually sold with utensils to be consumed by a natural person in Puerto Rico. | From March 20, 2020 to April 19, 2020. | |
| Monthly Sales and Use Tax (SUT) Tax Return (Form SC2915), including the corresponding payment for the months of February through May of tax year 2020. | Month of 2020: | Until: |
| February | 4/20/2020 | |
| March | 5/20/2020 | |
| April | 6/22/2020 | |
| May | 7/20/2020 | |
| Monthly Import Tax Return (Form SC2915D), including the corresponding payment for the months of March and April of tax year 2020. | Month of 2020: | Until: |
| March | 5/10/2020 | |
| April | 6/10/2020 | |
| May | 7/10/2020 | |
| Quarterly SUT payments for the months of March through June of 2020. | Noncompliance with the payments will not result in penalties if they are totally paid with the Monthly SUT return filed for the corresponding period. | |
| Tax Bonds with due dates between March 15, 2020 and April 30, 2020. | May 31, 2020 | |
| Internal Revenue Licenses with due dates between March 15, 2020 and April 30, 2020. | May 31, 2020 | |
The Puerto Rico Treasury Department, consonant with the Puerto Rico Governor’s policy and Executive Order 2020-023, issued Administrative Determination 20-10 on March 24, 2020, to provide a cash flow relief to taxpayers and merchants affected by the current emergency. We hereby include a summary of the measures:
|
CASH FLOW RELIEF TO TAXPAYERS |
COMMENTS |
| No penalties will be imposed on individuals or corporations for the omission or insufficient payment of the first two installments of the estimated income tax for tax year 2020. | The first and second installments must be made with the last two installments. |
| Withholding agents will be waived temporarily, from March 23 to June 30 of 2020, of their responsibility of withholding income tax upon the payment for services rendered. This waiver will be applicable on all types of services. The service provider can request the withholding agent to continue with the withholdings. | Those taxpayers with an optional taxation election for tax year 2020 and a partial waiver (6%) certificate will need to comply with their tax responsibility no later than the due date of the last estimated income tax payment for tax year 2020. |
| Temporarily remove the requirement of the sale and use tax payments on imports and on purchases of taxable items for resale to all merchants that have a valid Reseller’s Certificate. The merchant will submit copy of the certificate along with a completed and signed Form SC 2916 when acquiring the taxable items for resale.
For imported items for resale the merchant should report such taxable items for resale on line 3 of Form SC 2970 and Form SC 2915 D. Purchases for use or consumption are NOT exempt from sales and use tax. |
The temporary exemption period is from April 6 to June 30, 2020. All reseller merchants that have a valid and issued Resellers’ Certificate will automatically receive through their SURI account the Temporary Certificate of Exemption. |
Allow taxpayers to request that the following refunds, that were requested and are still pending, be applied to other taxes owed to the PR Treasury Department:
|
The requirements and rules regarding the process and period of this request will subsequently be issued by the PR Treasury. |
| Allow installment payment plans for the 2019 income tax. This option will only be available for taxpayers that do not have pending debts with the Department of Treasury. Monthly payments will be required, and the total payment should be made on or before March 31, 2021. | Only available for taxpayers that do NOT file an extension for tax year 2019, the rules and requirements will be issued subsequently. |
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.
