Recognizing the significance of the damage caused by Hurricane Maria, the Puerto Rico Treasury Department published an information bulletin concerning the approaching tax deadlines.
This information bulletin (BI RI 17-25 of October 19, 2017) provides guidance about new tax deadlines for some tax returns and payments.
The following filing dates will apply to the returns and payments with due dates during the months of September and October 2017.
Income tax returns, including the informative income tax return for a pass-through entity, with a due date, including extensions, during the months of September, October, November or December 2017, are postponed to Monday, January 15, 2018. However, any tax due with such return must be paid to the Puerto Rico Treasury Department on the date established above, in Parts A subsection 9 and Part B subsection 8, applicable to taxpayers “other than large taxpayers” and to large taxpayers, respectively.
Except for requests for information related to Form SC 6048, information request on tax credits reported in Form 480.71, all information requests for regular audits and audit by correspondence are suspended until further notice. Once the audit process are reestablished, the Puerto Rico Treasury Department will issue new communications about the date, form and manner in which the taxpayers should submit the required information.
Documents requested through Form 6048 are postponed until Friday, December 15, 2017, regardless of the date provided in the notification, Administrative Determinations 17-10 and 17-11, and Informative Bulletin 17-21. This postponement will not apply to notifications issued after October 19, 2017.
The Puerto Rico Treasury Department will grant taxpayers until Wednesday, January 31, 2018, time to submit any request for election of contributory treatment including, but not limited to:
In addition, supplemental information pursuant to Section 1061.15 (b) of the Code, with due dates in September, October, November, and December 2017, is postponed until Wednesday, February 28, 2018.
The closing date for the renewal of the specialist registration number has been extended until Wednesday, January 31, 2018. Filing of Form SC 2887.1 and the required documentation on or before January 31, 2018, will be considered as filed on time and will not be subject to additional charges.
The PR Treasury Department has extended the validity of all: (1) merchant registration certificate issued in accordance with the provisions of Section 4060.01 of the Code; (2) certificate of exemption to manufacturing plants, issued under Section 4030.02 of the Code; and (iii) reseller and municipal exemption certificate (Model SC 2963), issued in accordance with the provisions of Section 4050.04 (c) of the PR Code, whose expiration date is between September 5, 2017, and January 31, 2018, until January 31, 2018.
The merchant must complete the renewal of its certificate once the extended period ends in order to continue to benefit from it in transactions for the purchase of goods for resale made on or after February 1, 2018.
Bonded merchants and importers that as of September 1, 2017, have been in compliance with all the requirements of the Code and its regulations, and whose bond expires during the period beginning on September 1, 2017, and ending January 31, 2018, may continue to enjoy their classification of bonded merchant, importers or bonded dealers, as applicable, during such period without the need to renew their bond.
In addition, the PR Treasury Department will impose a moratorium on the provisions of Section 4042.03 (b) (3) of the Code until January 31, 2018. Merchants can complete the request to be considered a bonded merchant from February 2018. This moratorium will also apply to new applications to be considered bonded importers or dealers.
Merchants considered a sales and use tax non-withholding agent pursuant to Section 4020.08 (e) of the Code (“non-withholding agent”) will not be required to file the quarterly sales and use tax report for the quarter ended September 30, 2017. However, non-withholding agents will be required to comply with Section 4041.03(b)(1)(B) of the Code for the quarter starting on October 1, 2017.
If a non-withholding agent is interested in voluntarily collect sales and use tax may submit the request for a closing agreement to email@example.com.
The filing date for Form 481.1 has been postponed until January 31, 2018.
Any license rights whose deadline for renewal is in the months of September or October 2017 are considered valid for an additional term of 60 days (counted from the applicable deadline, as provided by BI RI 17-21). Once the term of provisional validity expires, all license holders must carry out the corresponding procedures for the renewal thereof, including, but not limited to, the corresponding payment. After completing the corresponding renewal process, such licenses will be effective retroactively to the original due date, to be granted by the Department based on the last digit of the social security number or employer identification number of the taxpayer, according to the Code.
Every person having submitted all the documentation for a license rights request and having not received an answer may obtain a provisional license without additional costs by sending the evidence of the submitted documents to firstname.lastname@example.org. This email will be replied with a written communication of the PR Treasury Department’s determination.
Any other document, requirement, payment, or procedure with the PR Treasury that has not been specifically mentioned in this BI RI and that has a due date is after September 5, 2017, will be automatically postponed until January 31, 2018.
Filings, payments and other transactions mentioned on this information bulletin and for which taxpayers comply with the due dates established therein, will not be subject penalties, fines, interest, or surcharges. If the PR Treasury’s system were to impose any of these sanctions, the PR Treasury Department would correct the record once normal operations reconvene. If the Treasury were not to correct these motu propio within a “reasonable period,” taxpayers are directed to notify the Taxpayers Service Center.
For more information, contact a tax professional with KPMG in Puerto Rico:
Rolando Lopez | +1 (787) 622-5340 | email@example.com
Carlos Molina | +1 (787) 622-5311 | firstname.lastname@example.org
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