20 Feb Withholding Tax at Source Changes in Transition to SURI
The PRTD issued Internal Revenue Circular Letter Number 18-17 on December 7, 2018 to inform that after December 10, 2018, all transactions related to withholding taxes at source (i.e. 499R-2, W-2PR, 480s) shall be completed in SURI. The following tax accounts were incorporated in SURI:
- Withholding of Wages (W-2PR, 499 R-3, 499 R-1B);
- Withholding of Non-Residents (480.6C, 480.30), and;
- Withholding on Other Income (480.7 and 480.6 forms).
Furthermore, transactions for the tax year 2018 will be registered under the SURI tax account of “Withholding of Other Income”. For the tax year 2019 and forward, transactions should be completed as follows:
- Professional Services (Payments subject to section 1062.03 of the Puerto Rico Internal Revenue Code of 2011, as amended (“PR Code”));
- IRA Withholdings (Forms 480.7, 480.7B, 480.7B.1);
- Retirement Plan Withholdings (480.7C, 480.7C.1), and;
- Withholding on Other Income (480.6A, 480.6B, 480.6B.1, 480.6D, 480.7A, 480.7D, 480.6EC, 480.6F and 480.6CPT).
The PRTD also establishes some changes regarding Control Number, Electric Filing Confirmation Number, and Deadlines.
- Control Number – The Taxpayer will now be responsible for providing the Control Number to the different forms they will be preparing and submitting.
- Electronic Filing Confirmation Number – The PRTD will still be responsible for providing this and it will consist of eleven (11) characters.
- Deadlines – Due to the processing time of the forms, which may take up to 2 working days, every taxpayer will have 7 calendar days, from the filing due date as determined by the PR Code, to send the duly processed forms to the corresponding payee.
This post is part of the Galíndez Infoms February 2019 edition.