The Puerto Rico Treasury Department issued guidance (Internal Revenue Circular Letter No. 18-11) setting forth the eligibility requirements and procedures for claiming the “employee retention credit.”
Eligible employers that continued to pay salaries to employees during a period of “inoperability” as a result of damage caused by Hurricane Irma and/or Hurricane Maria in Puerto Rico may be eligible for the employee retention credit.
To be eligible for the employee retention credit, the employer must have:
For these purposes, the eligibility period begins on the date when the trade or business became inoperable as a result of damage sustained by reason of Hurricanes Irma and/or Hurricane Maria, and ends on the earlier of: (1) the date when the business resumed significant operations; or (2) December 31, 2017.
The effective dates established as the “commencement period of inoperability of business” for each hurricane are as follows:
A taxpayer’s application for the employee retention credit will be accepted electronically until December 31, 2018.
For more information, contact a KPMG tax professional in Puerto Rico:
Rolando Lopez | +1 (787) 622-5340 | firstname.lastname@example.org
Carlos Molina | +1 (787) 622-5311 | email@example.com
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