Puerto Rico's sales tax consists of a 9.5% State Tax plus a 1% Municipal Tax. A corporation must substantially satisfy its annual income tax liability, if any, through estimated income tax payments. We will never share or sell your info. Please contact for general WWTS inquiries and website support. In the case of for-profit corporations, if the volume of business exceeds USD 3 million, the annual report must be accompanied by a balance sheet certified by a certified public accountant (CPA) licensed in Puerto Rico. 27-2011 (economic incentives for the motion picture industry); any tax levied under Act No. Taxpayers are also generally required to file a personal property tax return by 15 May and a volume of business declaration by the fifth business day after 15 April. SALES AND USE TAX (SUT) MONTHLY RETURN . 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. More…, Puerto Rico announced a transition from sales and use tax to VAT, but it was vetoed. Puerto Rico Treasury Department. By submitting this form you are agreeing to join the Sales Tax Institute’s mailing list so the Sales Tax Institute can send you email notifications including our monthly newsletter, monthly sales tax tips digest, information about upcoming courses and sales tax resources. Find your filing frequency below for your due dates. The law authorizes a 5.5% island-wide and 1.5% local sales and use tax generally applicable…. The Puerto Rico Treasury Department (PRTD) issued guidance extending the date for filing of returns or making tax payments. © 2017 - 2021 PwC. A return will be deemed to have been filed on the later of (i) its due date or (ii) the date the return was actually filed. We’ve pulled in the information from all our Charts for a consolidated view by state/territory. Taxpayers must file the informative returns for 2019 electronically through the Internal Revenue Unified System (SURI for its Spanish acronym). All rights reserved. For purposes of making this determination, the information to be used will be the total taxable sales reported in the Monthly SUT Returns, Form SC 2915, filed through Treasury’s Internal Revenue Unified System ("SURI" for its Spanish acronym). Due Date of the BMIs . However, no adverse opinions are allowed. However, the exemption for items…, Due to heavy rainfall and emergency weather conditions, the Governor of Puerto Rico has issued emergency Administrative Determination No. SALES TAX OF MERCHANTS WHO DO NOT HAVE COMMERCIAL LOCATION IN PUERTO RICO OR MULTILEVEL BUSINESSES (Multiply line 3(b) by 1%. INCOME TAX RETURN 2018 INFORMATION FOR PUERTO RICO FILE YOUR RETURN BEFORE APRIL 15, 2019 DEPARTMENT OF THE TREASURY GOVERNMENT OF PUERTO RICO DUE DATE: Monday, April 15, 2019. 257 (formerly known as “House Bill 1544”) that makes amendments to the 2011 Puerto Rico Internal Revenue Code (as amended). In the case of foreign entities, these will be able to submit audited financial statements with their Puerto Rico operations on a stand-alone basis; in other words, the CFS will not be required. 177 formally eliminates its excise tax and replaces it with a general sales and use tax. A Puerto Rico tax return reporting Puerto Rico income and a U.S. tax return is reflected on Form 1040-NR - FileIT.If you are a nonresident alien of the United States, but a bona fide Puerto Rico resident, your tax return will be treated as one of a nonresident alien, meaning you won't be allowed to claim a dependent deduction unless the dependent is a U.S. citizen or national. For municipal license tax filing, the threshold amount for the audited financial statements requirements is still USD 3 million in gross revenues. 19(d) Amount of Credit Used in this Return (See instructions) = = + 20. This will help you get informed on current and past legislation that has passed in the territory. Puerto Rico’s Governor has enacted temporary exemptions to address the impact of COVID-19. Join the Sales Tax Institute mailing list and get updates on the latest news, tips, and trainings for sales and use tax. In the event that the volume of business does not exceed USD 3 million, a balance sheet prepared under Generally Accepted Accounting Principles (GAAP) by a person with a general knowledge in accounting has to be submitted along with the corporate annual report. This annual report must be filed by the 15th day of April along with a USD 150 annual fee and a balance sheet as of the close of operations of the prior year. Prescription Drugs are exempt from the Puerto Rico sales tax; Counties and cities can charge an additional local sales tax of up to 1%, for a maximum possible combined sales tax of 7%; Puerto Rico has no special sales tax jurisdictions with local sales taxes in addition to the state sales tax More…, Puerto Rico enacted a tax amnesty program to take place 03/30/15 through 06/30/15. Failure to timely file can result in penalties. An extension of 60 days (an additional 30-day period may be requested) for filing the annual report can be obtained if timely requested. Sales Tax Changes in Puerto Rico – What Taxpayers Need to Know to Remain Compliant. The excise tax is collected by the Puerto Rico seller on receipts from the sale of personal property or services rendered to a related offshore purchaser. 7 was enacted with various changes to the Puerto Rico Internal Revenue Code of 1994. The deadline is extended to April 15, 2020 from March 16, 2020 for: 1) conduit entities filing 2019 tax returns; 2) payroll payments … 73-2008 (Puerto Rico economic development incentives); any tax levied under Act No. Filing Dates for Sales & Use Tax Returns. 20-09 and 20-10 (March 24, 2020) providing extensions of certain tax return filing and tax payment due dates as relief in response to the coronavirus (COVID-19) pandemic. Every corporation is required to file an annual corporation report with the Puerto Rico Department of State. Every corporation is required to file an annual corporation report with the Puerto Rico Department of State. Puerto Rico Department of Labor & Human Resources Submitting this form will add your email to our mailing list. AD 20-10 also provides various measures to try to improve cash flow for the taxpayers and merchants. The latter … Here you can see the sales tax rates and any remote seller nexus rules. 20-2012 (exportation of services); and any tax levied by any law of a similar nature or providing a special income tax rate. Puerto Rico Sales and Use Tax Filing Date Requirements Changed. Many taxpayers are under audit by the PRTD. Below the chart you can find any News & Tip item we have published that relates to Puerto Rico that you can filter by topic. SALES AND USE TAX (SUT) MONTHLY RETUR N Effective August st, 2007,1 the collection of the 1.5% SUTis uniform and applicable to all the municipalities of Puerto Rico. B2B services and certain professional services are subject to a reduced sales and use tax in Puerto Rico, effective 10/01/15. Income tax; estate and gift tax; excise taxes; sales and use tax; income tax withholding at the source; any tax levied under Act No. Annual report. foreign or domestic). 11.500% The Commonwealth rate is 10.5% with a 1% local rate that applies throughout the Commonwealth. A corporate taxpayer is required to file an annual income tax return by the 15th day of the fourth month following the close of its tax year. Act 257 of December 10, 2018 (Act 257) amended the Puerto Rico Internal Revenue Code to require any person or entity required to withhold income tax on payments for services rendered to submit a reconciliation quarterly tax return. Puerto Rico postponed tax deadlines falling in March, April, May, and June to June and July Withholding is not required on payments to independent contractors from March 23 to June 30 Deadlines originally occurring in March and April were extended to the equivalent date in June, the department said in a notice ( Administrative Determination No. 910 W. Van Buren Street, Suite 100-321 The audits may include income, payroll, withholding, and sales and use taxes. The financial statements should be submitted with an audit report issued by a CPA licensed in Puerto Rico. 7 was enacted with various changes to the Puerto Rico Internal Revenue Code of 1994. incorporated in Puerto Rico) or foreign corporations with volume of business of more than USD 10 million (previously USD 3 million) must include, with their CIT return, audited financial statements of the Puerto Rico operations for the accounting year ended on or before the preceding 31 December. Suggestions to Avoid Mistakes when Filing your Return..... Additional Child Tax … The Puerto Rico sales and use tax rate is 10.5%. • Monthly sales and use tax returns that are due 20 January 2020 • First biweekly sales and use tax payments that are due 15 January 2020 Extended due date through 16 March 2020 CL 20-02 extends the due date for income tax returns, including related forms and the filing of extension requests from 15 January 2020 to 16 March 2020. Puerto Rico estate tax returns due between the dates of September 5, 2017 and December 31, 2017 can be filed on or before January 31, 2018; Puerto Rico gift tax returns due between the dates of September 18, 2017 and December 31, 2017 can be filed on or before January 31, 2018; Renewal of Merchants Registry, Reseller Certificate and Manufacturers Exemption Certificate for Sales and Use Tax … The Sales and Use Tax filing date has been changed from the 20th to the 10th following the close…, On March 9, 2009, Act No. Accounting records must be prepared in accordance with the GAAP followed in the United States. Puerto Rico tax returns Although Puerto Rico is a US territory, the government requires tax return filings and payments separate and apart from the IRS. Waiver of interest, surcharges and penalties on outstanding real and personal property tax debts with the Municipal Revenue Collection Center (CRIM). By continuing to browse this site you agree to the use of cookies. A taxpayer that is treated as a partnership or flow-through entity is required to file an annual income tax return by the 15th day of the third month following the close of its taxable year. Error! Visit our. The Puerto Rico Treasury Department (PRTD) has announced (Administrative Determination (AD) 20-09 and AD 20-10) additional extensions for various returns, including sales and use tax returns, and payments because of COVID-19. Therefore, effective August 1st, 2007, all merchants … On this page you will find handy sales and use tax information about Puerto Rico. Under Act No. People born in Puerto Rico, which is located approximately 100 miles southeast of Miami, Florida, are U.S. citizens. 7, the provision was supposed to begin … Puerto Rico Governor Garcia Padilla signed legislation re-establishing the 6% sales and use tax rate, effective February 1, 2014. © 2021 Sales Tax Institute All Right Reserved. Waiver of Interest, penalties, surcharges, and any other additions to tax. TAX DUE (Add lines 20 and 21) = 24. More…. 7-2009 (special real property tax); any tax levied under Act No. For calendar year taxpayers whose tax year ended on December 31, 2016 the corresponding due date this year is April 18, 2017. Navigate the tax, legal, and economic measures in response to COVID-19. More…, Puerto Rico enacted legislation to increase the commonwealth’s sales tax, effective 07/01/15. The report should be filed through the Puerto Rico Department of State's website. The determination of the gross income threshold for purposes of the audited financial statement requirement should be made taking into consideration the volume of business of all the entities within a controlled group. The PRTD generally has four years after an original return is filed to assess income, payroll, and sales and use taxes. Municipalities in Puerto Rico began implementing individual sales and use taxes in 2005. Tax due dates extended as Puerto Rico Governor declares state of emergency following the spread of Coronavirus (COVID-19) Following Puerto Rico Governor's declaration of state of emergency for the island (through Executive Order No. Interest, surcharges, and penalties waived. Corporate and personal income taxes (excluding taxable years beginning after December 31, 2013), estate and gift taxes, sales and use taxes (for taxable periods ended before July 1, 2014), and excise taxes. Real property debts incurred and due for fiscal year 2012-2013 and previous tax periods, as well as any debts related to the personal property tax returns through tax year 2012. This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. A reduction in the tax rate from 6% to 5.5% was originally approved to go into effect on December 1, 2013…, Puerto Rico has enacted a tax amnesty program to relieve taxpayers from paying interest, surcharges and penalties on outstanding real and personal property tax debts with the Municipal Revenue Collection Center (CRIM). Please try again. Interest, penalties, surcharges, and any other additions to tax are waived for any taxpayer that pays the…, Effective, November 1, 2009, the 1994 Puerto Rico Internal Revenue Code has been amended by Act No. Puerto Rico raised its sales tax rate in 2015 from 7 to 11.5%, making it the highest sales tax rate in the U.S. for “state level” sales taxes. Tax Alert: Puerto Rico 2017 tax due dates Tax season is upon us and thus, the filing and payment of taxes becomes the main topic. The maximum marginal tax rate applicable to domestic corporations and foreign corporations engaged in a trade or business in Puerto Rico or with effectively connected income is 39%. If the volume of business (defined as gross receipts) of the corporation exceeds $3,000,000, the property tax return must be reviewed by a Puerto Rico licensed CPA and accompanied by financial statements certified by a CPA licensed in Puerto Rico. The CDTFA assigns a filing frequency (quarterly prepay, quarterly, monthly, fiscal yearly, yearly) based on your reported sales tax or your anticipated taxable sales at the time of registration. See instructions) = 22.