Read our insights

The Puerto Rico Department of Treasury has released Circular Letter 19-08 establishing the filing deadlines for certain corporation income tax returns.

Last week, President Trump signed into law the Tax Cuts and Jobs Act. As we have been informing periodically through the legislative process at the US Congress, the upcoming changes are the most significant legislated since the actual US Internal Revenue Code was enacted in 1986. Herein, we highlight a number of key elements in related to international taxation, which will effectively affect your fiscal responsibility when doing business in Puerto Rico.

During this difficult situation caused by Hurricane María in Puerto Rico, what could be better than planning how to move on, help your employees and at the same time save taxes. Here is a list of benefits that you could take into consideration during the year-end tax planning process.

Hurricane Maria’s devastation through Puerto Rico has brought upon a series of logistical and fiscal challenges which require the government to respond in efficient and agile manner. In order to achieve an effective fiscal administration the Puerto Rico Treasury Department issued Administrative Determination No. 17-28 on November 10, 2017.

Following is an updated summary of our 2017 Tax Calendar due dates for the months of November and December.

In the wake of Hurricane Maria’s widespread damage to Puerto Rico’s community and infrastructure, the Governor of Puerto Rico issued Executive Order 2017-56 authorizing the Secretary of the Treasury Department to take the necessary and reasonable fiscal measures to assist taxpayers in the aftermath of Maria’s destructive path.

On August 23, 2017, the San Juan Superior Court (the “Court”) held that the municipal business contribution imposed by the municipality of Caguas, known in Spanish as the “Aportación Empresarial Municipal”, was illegal and/or ultra vires.

The Governor of Puerto Rico issued Executive Order No. OE-2017-45, declaring Puerto Rico as a State of Emergency due to Hurricane Irma. To such effect, on September 9, 2017, the Puerto Rico Treasury Department issued Internal Revenue Circular Letter 17-13 to announce the postponement of certain due dates to file and pay taxes that are due during the month of September 2017.

Puerto Rico Treasury Department released Administrative Determination (“AD 17-04”) to further explain the changes that were introduced to the Puerto Rico Internal Revenue Code with the approval of Act 25-2017.

The 2011 Puerto Rico Internal Revenue Code (the “Code”) has been amended to expand the concept of “nexus” for sales and use tax purposes as it relates to out-of-state sellers who lack physical presence in Puerto Rico, but sell tangible property to persons within the island.

On April 26, 2017, President Donald J. Trump announced his proposed 2017 Tax Reform for Economic Growth and American Jobs, for which the Republicans have also issued their proposed tax plan known as “A Better Way” tax reform blueprint. The following table intends to compare the guidelines under both tax reform proposals.

On May 8, 2017, the Puerto Rico Treasury Department (“PRTD”) issued Administrative Determination No. 17-02 to express its position in regards to the computation of net taxable income for taxpayers’ involved in the maritime and air transportation industry.

Income Tax Returns for individuals and corporations are due on or before the 15th day of the fourth month following the close of the entity’s taxable year. For calendar year taxpayers whose tax year ended on December 31, 2016 the corresponding due date this year is April 18, 2017.