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The Puerto Rico Department of Treasury has released Circular Letter 19-06 stating new guidance for individuals, corporations and LLCs on the filing of automatic extensions for 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.

The continuous aim of the current administration has been the provision of the adequate conditions for the resurgence and eventual re-development of Puerto Rico’s economy.

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.

If one were to find a common thread throughout the various pronouncements that the Puerto Rico Treasury Department has issued in the aftermath of Hurricane Maria, it would be that this momentous event has brought upon a series of economic challenges which have required the current administration to balance societal needs vs. its fiscal responsibilities in a most pressing manner.

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.

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.

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.

Gov. Ricardo Rosselló has signed into law Senate Bill No. 582, now referred to as Act No. 76 of 2017, to repeal estate and gift taxes in Puerto Rico for transfers of property made after December 31, 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.

The Withholding Exemption Certificate (Form 499 R-4) is the document used by the employee to notify his/her employer of the personal exemption, exemption for dependents and the allowance based on deductions to determine the income tax to be withheld from the employee’s wages.

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.

On February 8, 2017, the Governor of Puerto Rico signed H.R. Bill No. 3 into law, Act No. 9 of 2017 (“Act 9”), which amends the Puerto Rico Trust Law of 2012 (the “Trust Act”), as well as the 2011 Internal Revenue Code for a New Puerto Rico (the “Code”), to provide a “better and broader protection of assets” under trusts and create a more favorable environment for employers to offer their employees retirement plans. Please refer to our January 13, 2017 Tax Alert in which we summarize the provisions of H.R. Bill No. 3.