02 Mar Informative Returns Now Due on March 31, 2020
Act No. 257 was enacted on December 2018 and made substantial changes to the Puerto Rico Internal Revenue Code of 2011, as amended (“the PR Code”). Under the new rules, if a company or self-employed individual want to deduct certain items, it will be required that the payment is reported in an informative return. In prior years, the reporting requirement was in place for the payment of salaries, services, interest, dividends and payments to foreign persons. Under the new rules, informative returns are now required for payments related to rent, water, energy, fees paid to professional associations, royalties, insurance premiums, telecommunication and advertising, among others.
Due to some changes in the PR Code and a subsequent court case, a lot of uncertainty arose regarding the application of this new requirement. Therefore, on March 1, 2020 the Puerto Rico Treasury Department (“PRTD”) issued Internal Revenue Informative Bulletin BI RI 20-025 (“the Bulletin”). In the Bulletin the PRTD explains that, due to the situation, no penalties would be imposed if the informative returns are filed on or before March 31, 2020.
Please note that this waiver of penalties does not apply to salaries, which were due on January 31, 2020. The waiver is also inapplicable to any tax payment requirement related to such informative returns.
Please contact us for additional information or assistance.
READ THE ORIGINAL PUBLICATION FROM PRTD