March 26, 2021
Puerto Rico's Treasury Department extends due date for filing income tax returns to May 17, 2021
The Puerto Rico Treasury Department (PRTD) has extended (Administrative Determination (AD) 21-04) the due date for filing income tax returns and paying the corresponding tax from April 15 to May 17, 2021, for individuals, estates and trusts (taxed as individuals), calendar-year-end corporations and other entities taxed as corporations (collectively taxpayers).
The extended due date also applies to entities that have a short tax year or a fiscal year 2020 and must file a tax return for tax year 2020 on or before April 15, 2021.
Because the new due date substitutes for the original due date established by the 2011 Puerto Rico Internal Revenue Code, as amended, the six-month extension of time for filing will count from May 17, 2021. Therefore, taxpayers that need additional time to file their tax returns for tax year 2020 may submit a request for an automatic extension of time to file the income tax return on or before May 17, 2021. While the return filing date will be extended to November 17, 2021, the tax payment is still due on May 17, 2021.
Individuals who qualify to pay the income tax balance due for 2020 in two installments, with the first installment due on May 17, 2021, will have until November 17, 2021 to pay the second installment, instead of October 15, 2021.
Additionally, for taxpayers required to make their first estimated tax payment on or before April 15, 2021, the PRTD allows taxpayers to make the first payment on June 15, 2021, with the second estimated tax payment.
AD 21-04 only applies to individuals, estates and trusts (taxed as individuals), calendar-year-end corporations and other entities taxed as corporations. Entities that file as pass-through entities and were required to file their income tax return on or before March 15, 2021 should refer to Tax Alert 2021-0549 for extended due date information. The determination under AD 21-04 does not apply to them. The PRTD clarified in a supplement to AD 21-03 that the extension for pass-through entities applies to all types of pass-through entities.
For insurance companies, not-for-profit corporations, and corporations that receive benefits under any of the Tax Incentives Laws and have a calendar year-end, the due date to file these income tax returns is not affected by AD 21-04 and continues to be June 15, 2021.