Puerto Rico: Amnesty for surcharges, interest, penalties

Puerto Rico: Amnesty for surcharges

Legislation passed by the Puerto Rico legislature provides a program of amnesty for certain surcharges, interest, and penalties.

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The legislation, originally introduced in the House as Bill 2316, was approved by both legislative bodies after the House accepted amendments made to the bill by Senate. The legislation is pending action by the governor, who may be expected to sign the bill quickly since it is in anticipation of further tax reform measures.

Summary

Under the legislation, there would be a program of abatement (amnesty) for interest, penalties, and surcharges relating to the following taxes:

  • Income tax (except for years beginning after December 31, 2013)
  • Estate and gift tax
  • Excise tax
  • Sales and use tax for periods ended before July 1, 2014
  • Income tax withholding at source, for periods ended before January 1, 2015
  • Taxes imposed by
    • Act 7-2009, the “Special Act Declaring a State of Fiscal Emergency and Establishing an Integrated Fiscal Stabilization Plan to Save Puerto Rico’s Credit”
    • Act 74-2010, the “2010 Tourism Development of Puerto Rico Act”
    • Act 73-2008, the “Economic Incentives for the Development of Puerto Rico Act”
    • Act 83-2010, the “Puerto Rico Green Energy Incentives Act”
    • Act 27-2011, the “Film Industry of Puerto Rico Economic Incentives Act”
    • Act 20-2012, the “Export Services Act”
    • Any other similar Act that levies a preferred income tax rate

Requirements for amnesty

To be eligible for the abatement / amnesty, taxpayers would have to satisfy the following requirements:

  • The underlying tax debts would have to be paid in their entirety on or before June 30, 2015.
  • The taxpayer would have to be compliant with all tax return filings and payments of tax for tax periods beginning after December 31, 2014.
  • The taxpayer would have to identify all tax debts that would be covered under the amnesty program and would waive the right to protest or object to any tax debt under the amnesty program.

 

For more information, contact a tax professional with KPMG in Puerto Rico:

Rolando Lopez | +1 (787) 622-5330 | rlopez@kpmg.com

Carlos Molina | +1 (787) 622-5311 | cmolina@kpmg.com

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