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Puerto Rico: Tax deadline extensions, response to coronavirus (COVID-19)

Puerto Rico: Tax deadline extensions, coronavirus

The authorities in Puerto Rico have issued guidance in response to the coronavirus crisis.

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The governor of Puerto Rico on March 15, 2020, issued an executive order (No. OE-2020-023) requiring businesses to close until March 30. Certain businesses (in general, those associated with food and fuel distribution, health-related services, equipment and supplies, and financial institutions) are exempted from this order. The order applies to most governmental agencies.
 

Tax guidance

The Puerto Rico Treasury Department (PRTD) issued guidance extending the date for filing of returns or making tax payments.

Internal Revenue Informative Bulletin 20-08 (BI RI 20-08) of March 16, 2020 – Extension of electronic filing period without penalties for the 2019 informative returns due to COVID-19: The PRTD announced its offices will remain closed until March 30, 2020. However, services that are provided electronically through SURI (the Spanish acronym for the Internal Revenue Unified System), as well as the electronic filing systems will continue to operate as usual. The period for filing of informative returns corresponding to the 2019 tax year is extended; these informative returns must be completed and filed via SURI no later than April 15, 2020, to avoid penalty assessments.
 

Internal Revenue Informative Bulletin 20-07 (BI RI 20-07) of March 13, 2020 – Extension of administrative terms due to COVID-19: The PRTD issued this informative bulletin with the purpose of granting taxpayers the following:

  • An additional 120 days, added to the period established in any notification issued by the PRTD of mathematical error or adjustment in the returns
  • An additional 90 days added to the expiration date for filing administrative complaints and for the presentation of information or documents required by the PRTD's Office of Administrative Appeals when the expiration date falls on a date from March 12, 2020, and later
  • Automatic extension of all administrative hearings to be held from March 16, 2020, until June 15, 2020 (thereafter, taxpayers are to be notified of the new date(s))
  • An additional 120 days to allow clearance of any debt-review letter issued on or before March 12, 2020


Administrative Determination 20-03 (AD 20-03) of March 13, 2020 – Extension of filing period for income tax returns and its corresponding payments:
Various returns and payments are extended as follows:

  • For pass-through entities and other taxpayers that have income tax returns due during March 2020, the PRTD granted an additional extension of the returns and payments until April 15, 2020 (including the payments due with returns, extensions and estimated income tax due on March 16, 2020).
  • For taxpayers with income tax returns due on April 15, 2020, the PRTD granted an additional extension of the returns and payments (including the payments due with returns, extensions and estimated income tax) through May 15, 2020.


Internal Revenue Circular Letter 20-20 (CC RI 20-20) of March 16, 2020 – Payment plans moratorium:
Taxpayers that have been economically affected by COVID-19 and the closure order will not be required to follow the terms of a payment plan between the period March 16, 2020, and April 30, 2020. The PRTD will not be imposing interest and penalties for non-compliance with the payment plans. If there is a notice for interest and penalties, the taxpayer may submit a request through SURI to eliminate such charges.


Administrative Determination 20-05 (AD 20-05) of March 16, 2020 – Extension of deadlines for the filing of returns and the payment of income taxes that are managed by the PRTD as a result of the Executive Order 2020-0023:
This guidance amends AD 20-03 to extend by one month the filing and payment due dates related to the sales and use tax that have due dates between March 15 through March 31, 2020.

  • Monthly sales and use tax return, Form SC 2915–the filing deadline for the period of February 2020 (originally due on March 20, 2020) is extended until April 20, 2020. Likewise, the due date of the sales and use tax payment to be made together with the monthly return corresponding to the period of February 2020 is extended as well.
  • Bi-monthly sales and use tax payments—no penalties will be imposed to those taxpayers with bi-weekly sales and use tax payment requirement to the extent that the full amount due is paid with the monthly sales and use tax return by the extended due date.

The due date to file all other returns, declarations and forms, as well as all payments or deposits of all other taxes managed by the PRTD that fall between March 15, 2020 and April 15, 2020, are automatically extended by one month without the need to file an extension request. Therefore, and by way of example, the deadline to file returns whose original due date is March 15, 2020, is extended until April 15, 2020.

Regarding income tax returns, extensions and corresponding income tax payments, the extensions established in DA 20-03 are still in effect.

All internal revenue licenses (every bond and internal revenue licenses) that expire between March 15 and March 31, 2020, are automatically extended through April 30, 2020.


Department of State – Annual report and LLC fees:
Fees that are due April 15, 2020, are now due May 15, 2020.
 

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

Rolando Lopez | +1 (787) 622-5340 | rlopez@kpmg.com

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

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