By Yaritza Portalatín-Méndez

In order to cope with the economic hit caused by the current lockdown of Puerto Rico, Governor Wanda Vázquez Garced announced a new incentives plan known as the “Strategic Plan to Reactivate our Economy, Support and Protect our Workers”.  The Strategic Plan aims to help workers and small and medium size businesses.  The Puerto Rico Treasury issued Circular letter 20-21 on March 26, 2020 with the eligibility requirements of the $500 incentive available to self-employed workers.

The Eligible Individuals for the $500 incentive must comply with the following:

• They must be Puerto Rico residents who are self-employed,
• subject to federal social security tax,
• registered in SURI as merchants, and
• have a valid Merchant’s certificate (SC2918) as of March 15, 2020.

The Eligible Individual must provide (from March 30, 2020 to May 1, 2020) through their SURI account the bank account in which they will receive the incentive through direct deposit.  If you are eligible, you will see a link in your SURI account.  Specifically in the “Alert” section you will see an option of “Economic Incentive”.  Once you complete the banking information you will submit the information.  If the individual’s Merchant’s Certificate is expired, you will have the option to request the incentive if you can demonstrate that you are an Eligible Individual.  To demonstrate that you are an Eligible Individual you must comply with the following:

• access your SURI account (no later than May 1, 2020),
• renew the Merchant’s certificate,
• confirm that you have not ceased operations,
• establish the date from which you have been operating,
• confirm the banking information,
• file, no later than July 15, 2020, all the applicable monthly Sales and Use Tax returns, and
• file on time (including extensions) the 2019 income tax return.

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.