close
Share with your friends

Puerto Rico: Tax relief for taxpayers affected by January 2020 earthquakes

Puerto Rico: Relief for taxpayers affected earthquakes

The Puerto Rico Department of Treasury issued guidance providing tax relief for those taxpayers affected by the earthquakes in January 2020.

1000

Related content

This tax relief applies with respect to Puerto Rican taxes. The IRS subsequently issued guidance concerning federal tax obligations: TaxNewsFlash

CC RI 20-02 of January 8, 2020

This circular letter postpones the filing deadline for certain returns or declarations and delays the date for payment of certain taxes that are normally due during the month of January 2020. The circular letter also provides that no interest, surcharges or penalties will be imposed if filings and payments are made by the postponed date.

The Puerto Rico Department of Treasury extended the filing or payment dates as follows:

  • For returns, declarations, and forms related to employer contributions, withholdings, and payments of estimated income tax (including the last installment of estimated payment of individuals for the 2019 tax year) due between January 7 and 30, 2020—the filing date has been postponed to January 31, 2020.
  • For income tax returns including related forms and extension requests that are due on January 15, 2020—the filing date has been postponed to March 16, 2020.
  • For monthly excise tax return and monthly tax on imports return, along with the corresponding payment, due on January 10, 2020—the filing date has been postponed to January 31, 2020.
  • For monthly sales and use tax return (SUT) due on January 20, 2020—the filing date has been postponed to January 31, 2020.
  • For the first installment of the SUT bimonthly pre-payment that expires on January 15, 2020—the payment date has been postponed to January 31, 2020.

If the second bimonthly SUT pre-payment corresponding to the month of January 2020, and those taxpayers with revenue licenses with a renewal period expiring during the month of January 2020, the deadline established in the Puerto Rico tax law is still applicable—that is, January 31, 2020. The postponement established by the circular letter does not apply to them. The provisions of this circular letter will not apply to the following forms and, therefore, the filing deadlines will be the ones established in the Puerto Rico tax law:

  • Withholding statement (Form 499R-2 / W-2PR) for the year 2019—due on January 31, 2020
  • Reconciliation statement of income tax withheld (Form 499 R-3) for the year 2019—due on January 31, 2020
  • Informative return - mortgage interest (Form 480.7A) for the year 2019—due on January 31, 2020
  • Informative return - payments for car leasing for the year 2019—due on January 31, 2020

AD 20-01 of January 9, 2020

This administrative determination (AD) temporarily exempts individuals from paying sales tax for taxable items acquired in Puerto Rico that are considered prepared foods, carbonated drinks, confectionery products, and sweets (collectively, “prepared foods”).

The Department exempts from state and municipal sales tax (established in sections 4020.01, 4210.01 and 6080.14 of the Puerto Rico tax law) prepared foods purchased by any natural person located in Puerto Rico until January 31, 2020, at 11:59 p.m.

Merchant will report these sales of prepared foods eligible for this exemption from sales tax in their monthly sales and use tax return (Form SC 2915) on the line “Sale of Exempt Tangible Personal Property.”

This exemption does not apply to the sale of alcoholic beverages.

 

For more information, contact a KPMG tax professional in Puerto Rico: 

Carlos A. Molina | +1 (787) 622-5311 | cmolina@kpmg.com

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal