Newsletter:

New Extended Local Tax Deadlines and Temporary Procedures Due to Hurricanes Irma and Maria

31 October 2017

Time Extended to Submit Tax Returns and Payments

Due to Hurricane Maria, the Puerto Rico Department of Treasury (“PRTD”) issued Informative Bulletin No. 17-21 (“IB 17-21”), on September 27, 2017, to postpone the deadlines for the tax returns, payments and declarations that were due in the months of September and October 2017.

On October 3th, 2017, BDO Puerto Rico issued Tax Alert No. 51 to provide a summary of the extended filing deadlines. Later, on October 18, 2017, the PRTD issued Informative Bulletin No. 17-25 (“IB 17-25”), to notify taxpayers of the revised extended deadlines for tax returns and payments. As a result, the new deadlines are as follows:

  1. For taxpayers other than “Large Taxpayers”
  • Tax on Import Monthly Returns (Form SC 2915 D) for the months of August, September, and October 2017, are now due December 11, 2017.
  • Sales and Use Tax Monthly Return (Form SC 2915) for the months of August, September, and October 2017, are now due December 20, 2017.
  • The 2nd payment of the 2016 Individual Income Tax, which was due October 16, 2017, and was later postponed to November 6, 2017, is now due January 15, 2018.
  • The Excise Tax Monthly Returns (Forms SC 2225 and Form 2225 A) deadlines for the months of September and October 2017, are postponed to December 11, 2017. Accordingly, the Excise Tax Monthly Returns for the months of September, October, and November 2017 will be due December 11, 2017.
  • In case of taxpayers with an accounting period based on a natural year, the 3rd payment for the estimated tax payment is now due December 15, 2017. In case of non-individual taxpayers, the 3rd and 4th payments for the estimated tax for the year 2017 shall be deposited no later than December 15, 2017.
  • Income Tax Returns, including the Informative Tax Return for Pass-Through Entities, including extensions requested, which were due in the months of September, October, November and December, are now due on January 15, 2018. However, any balance of tax due which with such returns shall be paid to the PRDT by December 15, 2017.

For other tax payments or deposits (see rules below for withholding at source on salaries and professional services) with original due dates on September and October 2017, the deadlines are postponed to December 15, 2017

  1. For “Large Taxpayers”

For returns, declarations and payments, the following will apply:

  • IB 17-25 maintains the 7-days period extension for transactions made through SURI related to the Sales and Use Tax (“SUT”), including, but, not limited to, the filing and payments of:
    • Tax on Imports Monthly Return (Form SC 2915 D);
    • SUT Monthly Return (Form SC 2915); and
    • The payment of the quarterly SUT.
  • The excise taxes on the acquisition of certain personal property and services pursuant to PR Code Section 3070.01 associated with August and September 2017 were extended to October 6, 2017, and October 20, 2017, respectively.
  • The August 2017 Excise Tax Monthly Return’s deadline (Form 2225 and 2225 A), which was September 10, 2017, was now extended to October 8, 2017. Moreover, the September Excise Tax Monthly Return’s due date, which was October 10, 2017, is now postponed to October 30, 2017.
  • In case of taxpayers with an accounting period based on a natural year, the 3rd  installment for the estimated tax payment is postponed to October 31, 2017.
  • Income Tax Returns, including the Informative Tax Return for Pass-Through Entities, including extensions requested, which were due in the months of September, October, November and December, are now due on January 15, 2018. However, any balance of tax due which with such returns shall be paid to the PRDT by November 15, 2017.

For other tax payments or deposits (see rules below for withholding at source on salaries and professional services) with original due dates on September and October 2017, the deadlines are postponed to November 15, 2017

  1. All taxpayers

The following applies for both “Large Taxpayers” and taxpayers other than “Large Taxpayers”:

  • In case of salaries, every deposit of tax withholdings at source for the months of September and October 2017 is automatically postponed to November 15, 2017, including the biweekly deposits required to certain employers.
  • For services rendered, every deposit of tax withholdings at source for the months of September and October 2017 is automatically postponed to November 10, 2017.
  • The Employer’s Quarterly Return of Income Tax Withheld (Form 499-R-1B) corresponding to the 3rd quarter of 2017, which was due October 31, 2017, is now postponed to January 31, 2018. Accordingly, both Forms 499-R-1B corresponding to the 3rd and 4th quarter of 2017, shall be filed electronically no later than January 31, 2018, along with the Withholding Receipts for the year 2017.
  1. Information Requests by the PRTD

Any request of information by the PRTD, including the information requests associated with an audit procedure, are suspended until further notice.

  1. Information Requests through Form SC 6048

The period for the presentation of the documents requested in Form 6048, Information Request of Tax Credits Reported in Form 480.71, is postponed to December 15, 2017. This change in deadline is not applicable to notices issued after October 19, 2017. 

  1. Other Requests and Elections

The PRDT will grant the taxpayers until January 31, 2018, to submit any election of tax treatment, including, but, not limited to:

  • Form SC 6045 – Partnership or Limited Liability Company Classification Notification or Election – if due date was between September 5, 2017 and December 31, 2017.
  • Form SC 2640 – Subchapter N Corporation Election - if due date was between September 5, 2017 and December 31, 2017.
  • Application for the exclusion of certain expenses incurred or paid to a related party in connection with the limitation on the deduction of such payments pursuant to Section 1033.17(a)(17)(D) of the PR Code, which deadline to submit was between September 5, 2017 and December 31, 2017.
  • Ruling Request, if due date was between September 5, 2017 and December 31, 2017.
  • Request for Change in Tax Year or Accounting Period, if deadline was between September 5, 2017 and December 31, 2017.
  • Estate Tax Returns – if original or extended due date was between September 5, 2017 and January 31, 2018.
  • Gift Tax Return - if due date was between September 18, 2017 and January 31, 2018.

Supplementary Information required pursuant to Section 1061.15(b) of the PR Code due during the months of September, October, November, and December of 2017, the deadline is extended to February 28, 2018.

  1. Additional Changes
  • Expiration dates for Merchant’s Registry Certificates, Municipal SUT Exemption and Reseller Certificate, and Certificate of Exemption for Manufacturing Plants that were due between September 5, 2017 and January 31, 2018, are extended to January 31, 2018.
  • Bonded Merchants that on September 1, 2017 were in compliance with all the requirements and which bond coverage expires between September 1, 2017 and January 31, 2018, will be able to continue to benefit from their classification as Bonded Merchants during such period without the need to renew their bond. 
  • SUT Quarterly Report required by Act 25-2017 to Non-Withholding Agents will not be required to be submitted for the Quarter ended on September 30, 2017, and which due date was October 31, 2017. However, the requirement to submit such report will continue to be in effect for the other quarters, starting October 1, 2017. For more information regarding the SUT Quarterly Report, please refer to our Tax Letter No. 45, issued on June 29, 2017.

Any other document, requirement, payment, or process with the PRDT that was not expressly mentioned in IB 17-25, and which due date was after September 5, 2017, is automatically extended to January 31, 2018.

Please contact any of the members of the BDO team to continue the conversation.