Newsletter:

Tax Alert - July 2020

July 01 2020

July 1

First Installment of the 2020-2021 Municipal License Tax Declaration (Patente) payment without the 5% discount if payment was not made with timely extension request filing or final declaration (15 days grace period applies until July 15th). However, the 2020-2021 declaration’s deadline was moved to July 22nd due to COVID-related measures. Taxpayers are eligible for the 5% discount if full payment is remitted by July 22nd, while deadlines for the remittance of installments has not yet officially been changed.

First installment 2020-2021 Real Property Tax (CRIM). Discount of 10% applies for prompt payment. (Electronic payment through crimpr.net or applicable commercial banks.)

July 10

Use Tax on Imports Monthly Returns (Form SC 2915.1 D) for the month of May (previously due May 10th, 2020). *

Use Tax on Imports Monthly Returns (Form SC 2915.1 D) for the month of June (Electronic filing through SURI online site).

Monthly Excise Tax Return and payment (Form SC 2225) (Electronic filing through SURI online site).

Puerto Rico Tourism Company room tax filing deadline for the periods of March, April and May 2020 pursuant to Administrative Bulletin AF-20-003.

July 15

US Individual Income Tax Return (Form 1040) for calendar year 2019; or request for Automatic Extension of Time (normally 6 months, but current provisions would have it at 3 months from this revised deadline) to file the US Individual Income Tax Return (Form 4868) (previously due April 15th, 2020).**

US Corporate Income Tax Return (Form 1120) for calendar year 2019; or request for Automatic Extension of Time (normally 6 months, but current provisions would have it at 3 months from this revised deadline) to file the US Corporate Income Tax Return (Form 7004) (previously due April 15th, 2020).**

US Individual and Corporate Estimated Income Tax Payment for 2020 – First and second installments (for individuals, Form 1040-ES) (previously due April 15th and June 15th, 2020, respectively).**

PR Individual Income Tax Return electronic filing (Form 482.0) for calendar year 2019; or request for Automatic Extension of 6 months (Form SC 2644) (filed electronically via SURI online system) (previously due April 15th, 2020).*

PR Corporation Taxable and Non-grantor Trust Income Tax Returns for calendar year 2019; or request for Automatic 6 months Extension to file income tax return (Form SC 2644) (filed electronically via SURI online system) (previously due April 15th, 2020).*

PR Corporation Taxable and Non-grantor Trust Income Tax Returns for year ended January 31, 2020; or request for Automatic 6 months Extension to file income tax return (filed electronically via SURI online system) (previously due May 15th, 2020).*

PR Corporation Taxable and Non-grantor Trust Income Tax Returns for year ended February 28, 2020; or request for Automatic 6 months Extension to file income tax return (filed electronically via SURI online system) (previously due June 15th, 2020).*

PR Corporation Taxable and Non-grantor Trust Income Tax Returns for year ended March 31, 2020; or request for Automatic 6 months Extension to file income tax return (filed electronically via SURI online system).

PR Composite Return Partners and Individual Members of Partnerships and Limited Liability Companies (Form 482.0(C)) for the calendar year 2019 (previously due April 15th, 2020).*

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) Form 480.20(EC) with year ended September 30, 2019 with timely filed extension (previously due June 15th, 2020).*

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) for calendar year 2019 using Form 480.20 (EC); or request 6 months extension to file, using Form SC 2644 (previously due June 15th, 2020 pursuant to Circular Letter 20-10 and DA 20-09, but changed to this new date by Act 57, June 14, 2020). (NEW: Electronic filing through SURI online site)

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) Form 480.20(EC) with year ended January 31, 2020; or request 6 months extension to file, using Form SC 2644 (filed electronically via SURI online system) (previously due April 15th, 2020).*

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) Form 480.20(EC) with year ended February 28, 2020; or request 6 months extension to file using Form SC 2644 (filed electronically via SURI online system) (previously due May 15th, 2020).*

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) Form 480.20(EC) with year ended March 31, 2020; or request 6 months extension to file using Form SC 2644 (filed electronically via SURI online system) (previously due June 15th, 2020).*

PR Informative Income Tax Return Pass-Through Entity (Partnership, Special Partnership and Corporation of Individuals) Form 480.20(EC) with year ended April 30, 2020; or request 6 months extension to file using Form SC 2644 (filed electronically via SURI online system).

Informative Return on Income Subject to Withholding to Nonresidents (Form 480.6C) (previously due April 15th, 2020).*

Last day for individuals to contribute to an Individual Retirement Account and take the deduction on the 2019 PR Individual Income Tax Return (if no extension of time to file the income tax returns is requested) (previously due April 15th, 2020).*

Income Tax Return of corporations that hold a tax exemption decree under the New Incentives Code Act of 2019 or previous incentive laws, for calendar 2019 or request 6-month automatic extension to file using Form SC 2644 (extension filed electronically via SURI online system) (previously due June 15th, 2020).*

Non-for-profit tax return Informative Return for Income Tax Exempt Organizations Form 480.70(OE) for calendar year 2019; or request 6-month automatic extension to file using Form SC 2644 (extension filed electronically via SURI online system) (previously due June 15th, 2020).*

Insurance companies’ income tax returns or request 6-month automatic extension to file using Form SC 2644 (extension filed electronically via SURI online system) (previously due June 15th, 2020).*

2019 Corporate Annual Report and LLC Annual Fee filed with the Puerto Rico Department of State (electronic filing). No request for Extension of Time appears to be available after the COVID-related deadline relief. ****

Deposit of 10% or 6% of income tax withheld from payments made during May for services rendered (Payment Voucher 480.9A) (previously due June 15th, 2020).*

Deposit of 10% or 6% of income tax withheld from payments made during June for services rendered (Payment Voucher 480.9A) (Electronic filing through SURI online site).

FICA monthly depositors, for the month of June (Form 941) (electronic filing through EFTPS online site).

Income Tax Withholding Deposit, monthly depositors, for the month of June (Form 499 R-1B) (Electronic filing through SURI online site).

Chauffeurs Social Security 2nd quarter payment (Form TSCH-1).

Bi-monthly Sales and Use Tax Estimated Payments for those who are regarded as a Large Taxpayer pursuant to PR IRC Section 1010.01(a)(35); and whose average monthly SUT deposited during the previous calendar year exceeded $2,000. (Electronic filing through SURI online site.)

Deposit of 4% monthly excise tax on foreign entities (Form 480.36).

Deposit of 29% tax withheld at source on payments to foreign persons in excess of $200 during the month of May (Form 480.31) (previously due June 15th, 2020).*

Deposit of 29% tax withheld at source on payments to foreign persons in excess of $200 during the month of June (Form 480.31). (Electronic filing through SURI online site.)

Deposit tax withheld at source on dividends, partnership profit distributions, interests and 10% penalty on IRA during the month of May (Form 480.9) (previously due June 15th, 2020).*

Deposit tax withheld at source on dividends, partnership profit distributions, interests and 10% penalty on IRA during the month of June (Form 480.9).

Deposit of Estimated Income Tax by Corporations (except year ending January 31, 2021) and Pass-through entities, Partnerships, Special Partnerships and Corporations of Individuals (electronic filing through SURI online site) (previously due May 15th, 2020) *

FISCAL YEAR

INSTALLMENT

May 31, 2020

4th Installment

August 31, 2020

3rd Installment

November 30, 2020

2nd Installment

January 31, 2021

1st Installment

Deposit of 1st and 2nd Installment Estimated Income Tax for corporations with fiscal year ending January 31, 2021 (electronic filing through SURI online site) (previously due May 15th, 2020 and July 15th, 2020, respectively, NEW DUE DATE October 15th, 2020 and/or January 15th, 2021). *****

Deposit of Estimated Income Tax by Corporations (except years ending January 31st and March 31st 2021) and Pass-through entities, Partnerships, Special Partnerships and Corporations of Individuals (electronic filing through SURI online site):

FISCAL YEAR

INSTALLMENT

July 31, 2020

4th Installment

October 31, 2020

3rd Installment

January 31, 2021

2nd Installment

March 31, 2021

1st Installment

Deposit of 1st Installment Estimated Income Tax for corporations with fiscal year ending March 31, 2021 (electronic filing through SURI online site). NEW DUE DATE December 15th, 2020 and/or March 15th, 2021.

July 20

Sales and Use Tax Monthly Return (Form SC 2915) for the month of May (Electronic filing through SURI online site) (previously due June 20th, 2020).*

Sales and Use Tax Monthly Return (Form SC 2915) for the month of June (Electronic filing through SURI online site).

Sales and Use Tax Monthly Municipal Return for the month of June (Electronic filing through SURI online site). Taxpayers may need to confirm with the municipalities if they approved additional time.

First Installment of the Annual Payroll to State Insurance Fund of Puerto Rico 2020-2021.

Payroll declaration for Workmen’s Compensation Insurance (CFSE 693). NEW DUE DATE August 4th, 2020.

July 22

Municipal License Tax Declaration (2020-2021) (Form OCAM PA01): Last day to pay with a 5% discount (OGP Circular Letter 162-19) (previously due April 22th, 2020). ***

Last day to file the request for extension of time (up to 6 months) to file the Municipal License Tax Declaration 2020-2021 (Form OCAM PA01) (previously due April 22th, 2020). ***

July 31

Quarterly Return of Tax Withheld on Payments for Services Rendered showing the payments made for professional services subject to PR income tax withholding pursuant to Section 1062.03 and the corresponding income tax withheld and remitted during the quarter ended June 30, 2020 (electronic filing through SURI online site).  

Quarterly Returns (Q-2)

  • Form 499 R-1B Quarterly Report of Income Tax Withheld (Electronic filing through SURI online site).
  • PR Employer’s Quarterly Federal Tax Return FICA Quarterly Tax Return (941-PR) and FUTA Tax Return (940-PR).
  • Form PRSD 10 Declaration of Unemployment and Disability Insurance (Form PR-UI-10 and PR-UI-10A) (Electronic filing also available).

Affirmative Declaration of Transactional Accounts for applicable requests or extensions of credits approved by the financial business during the month of April (previously due April 30th, 2020).*

Affirmative Declaration of Transactional Accounts for applicable requests or extensions of credits approved by the financial business during the month of May (previously due May 31st, 2020).*

Affirmative Declaration of Transactional Accounts for applicable requests or extensions of credits approved by the financial business during the month of June.

Bi-monthly Sales and Use Tax Estimated Payments for those who are regarded as a Large Taxpayers pursuant to PR IRC Section 1010.01(a)(35); and whose average monthly SUT deposited during the previous calendar year exceeded $2,000 (Electronic filing through SURI online site).

Supplemental Schedules required pursuant to Act 163 of 2014 for applicable entities which were required to file their PR income tax return by June 15, 2020 and, if eligible to do so, did not file a request for extension by such deadline.

IMPORTANT:

*Pursuant to Administrative Determination 20-09 (DA 20-09).

**Pursuant to IRS Notice 2020-18, all federal payments or returns due April 15th, 2020 for “persons” (individual, a trust, estate, partnership, association, company or corporation) were moved to July 15th, 2020 in response to the COVID-19 pandemic.

***Pursuant to CC 005-2020, the new due date for the 2020-2021 Municipal License Tax Declaration is July 22nd, 2020 in response to the COVID-19 pandemic.

****Pursuant to Administrative Order 2020-02 (OA 2020-02).

*****Pursuant to Administrative Determination 20-10, the first and second estimated tax installments for the year 2020 may be remitted with the third and fourth installments without incurring penalties in response to the COVID-19 pandemic.