In Circular Letter 17-13 (CL 17-13,) Puerto Rico's Treasury Department (PRTD) extends the due dates to comply with the filing and payment of certain tax obligations as a result of the state of emergency declared by the Governor of Puerto Rico due to Hurricane Irma.

The extended tax obligations relate to sales and use, excise, income, and payroll taxes and are for deposits of taxes withheld or collected in August, and a few tax return filings.

The dates are extended as follows:

Taxpayers should note that the due dates for Form SC 2915, Monthly Sales and Use Tax Return, and the second bimonthly payment of sales and use tax are not extended.

During the month of September, the PRTD will not impose penalties on the late filing of returns and late payments of taxes related to income, excise, and sales and use tax obligations to the extent the taxpayer demonstrates that it has exerted due diligence in complying with the obligations.

Implications

For calendar-year taxpayers that requested a three-month extension of time to file Form 480.20(U), Income Tax Return for Nonresident Foreign Corporations and Partnerships subject to the effectively connected income source rules of Act 154-2010, CL 17-13 does not further extend that deadline. Therefore, Form 480.20(U) is due September 15. Also, the last estimated income tax installment due on September 15 for those entities whose fiscal year ends on September 30 is not extended.

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ENDNOTES

¹ Deposit of income tax withholding on services rendered.

² Includes various deposit obligations related to payments of dividend distributions, interest, and 10% penalty on withdrawals from Individual Retirement Accounts (IRA).

³ Includes various deposit obligations related to payments of judicial or extrajudicial payments and estimated tax payments on the distributable share to partners on the income of partnerships, special partnerships and corporations of individuals.