News

* Certain requirements and conditions apply. Please see below for more information. ** Portal was supposed to be available as of June 1, 2018; however, it is not operational yet. We understand it shall be available in the next following days.   Background The Disaster Tax Relief and Airport and Airway Extension Act of 2017 was signed by President Trump on September 29, 2017 (hereinafter “Act”) to provide targeted tax relief for taxpayers impacted by Hurricanes Harvey, Irma, and María. Among the reliefs provided...

The Treasury Department (the “Department”) issued Administrative Determination No. 18-07 (the “Determination”). The Determination basically discusses two items. First, it extends the automatic extension terms from three to six months. Second, it provides some guidelines to request the waiver of additions to the tax for late payment of estimated income tax. A more detailed discussion follows.   Extended Period for the Automatic Extension As a general rule, an automatic extension provides for an additional period of time of three months to file the...

Treasury issued Administrative Determination 18-05 (“Determination”), which provides how individuals will claim any losses suffered as consequence of Hurricane María. The determination is aimed at individual losses not related to a trade or business. In the case of individuals the Puerto Rico Internal Revenue Code of 2011, as amended (“Code”), provides two deductions: Losses suffered in the principal residence of the taxpayer Losses suffered related to personal property and due to a casualty in an area designated as a disaster zone...

On March 1, 2018, the Treasury issued Informative Bulletin 18-08 (“the Bulletin”) with the purpose of extending the due date for the Informative Returns (Declarations) for the 2017 tax year, until March 6, 2018.   The extension covers only the Declarations indicated below: Form 480.6A "Informative Return - Income Not Subject to Withholding" Form 480.6B "Informative Return - Income Subject to Withholding" Form 480.6D "Informative Return - Exempt and Excluded Income and Exempt Income Subject to Alternate Basic Contribution" Form 480.6B.1 "State...

The Treasury issued on January 30, 2018, the Internal Revenue Circular Letter No. 18-01 to establish the procedures and documents required to claim the deduction of mortgage interest paid or accumulated by a person other than the mortgage loan debtor or co-debtor. To be eligible for this deduction, the payment must have been made on a mortgage loan secured by the taxpayer’s qualified residence and the following documentation will be required: Informative Return – Mortgage Interest (Form 480.7A): issued by...

On January 30, 2018, the Puerto Rico Treasury Department (“Treasury”) issued Internal Revenue Informative Bulletins 18-04, 18-05 and 18-06 to announce the release of the Spanish version of the following 2017 income tax returns with their corresponding instructions and schedules: Form 482.0 – Individual Income Tax Return Form 480.20 – Corporate Income Tax Return Form 480.20(EC) –Informative Income Tax Return Pass-Through Entity Form 480.6EC – Informative Return - Pass-through Entities Form 480.8(F) – Revocable Trust or Grantor Trust Informative Income...