On March 1, 2016, the Puerto Rico Treasury Department (PRTD) issued Administrative Determination 16-02 (AD 16-02) delaying the filing due date from March 15, 2016 to April 15, 2016 of the informative income tax returns for partnerships, special partnerships, limited liability companies, corporations of individuals, revocable trusts and grantor trusts (collectively, flow-through entities or FTEs) with tax years ending on December 31, 2015. The extended filing date does not apply to special employee-owned corporations, which must continue to file income tax returns no later than the 15th day of the fourth month following the end of the tax year.

Moreover, FTEs with tax years ending on December 31, 2015, will also have until April 15, 2016, to electronically file the informative declarations to their partners, members or grantors, as applicable.

The postponement of the filing date will not affect the ability of the FTEs to request an extension of time to file the informative income tax return or informative declarations on or before April 15. In addition to the extension request for the informative income tax return, FTEs also must file the extension request for the informative declaration, by filing Form SC 2644.1. Both extensions will be granted for a three-month period, ending on July 15, 2016.

Also, note that the informative income tax return filed by FTEs must include copy of the informative declarations that were electronically filed.

Implications

Generally, FTEs are required to submit any unpaid income tax balance attributable to the distributive share of their partners, members or grantors, on or before the 15th day of the third month following the close of the tax year, together with the filing of the informative income tax return required or the corresponding request for extension. Although AD 16-02 does not specifically address the postponement of the payment, it appears that would be the case because the payment has to be submitted together with the informative income tax return or request for extension.

AD 16-02 only applies to entities with tax years ended on December 31, 2015. FTEs with fiscal years ending after December 31, 2015, must file their extension requests by the 15th day of the third month after the close of the tax year.

Similarly, informative declarations of fiscal year end entities must be filed no later than the last day of the third month after the close of the tax year. The extension for filing informative declarations will be for a one-month period for partnerships or limited liability companies taxed as partnerships, and 30 days for special partnerships, corporations of individuals and revocable trusts or grantor trusts.

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