Our previous Client Alerts extensively discuss Executive Order No. 2020-23 ("EO 2020-23") of Governor Wanda Vázquez Garced, dated March 15, 2020, that establishes a mandatory closing of most commercial establishments and non-essential governmental services through March 30, 2020.
A few days before EO 2020-23, on March 13, 2020, the Puerto Rico Treasury Secretary had issued Administrative Determination 20-03 ("AD 20-03") to extend the filing deadlines to file certain income tax returns. Following EO 2020-23, on March 16, 2020, the Puerto Rico Treasury Secretary issued Administrative Determination 20-05 ("AD 20-05") effectively shutting down the operations of the Puerto Rico Treasury Department ("PRTD") until March 30, 2020 and to further extend several deadlines for filing returns. A summary of the extensions included in AD 20-05 follows:
I. SALES AND USE TAX ("SUT")
A.
February Monthly SUT returns
- filing deadline extended for one (1) month until April 20, 2020 (includes SUT payment due with monthly return).
B.
March SUT semi-monthly payments
- the PRTD will not impose penalties for non-compliance with SUT semi-monthly payments, provided that the total SUT amount due for such month is paid with the corresponding SUT monthly return.
II. INCOME TAXES
A. For Pass-through Entities and any other Taxpayers whose returns have a filing due dates during the month of March 2020, the PRTD extended the deadlines as follows:
a. extended filing deadline - April 15, 2020;
b. deadline to request extension to file - April 15, 2020;
c. income tax payment to accompany income tax returns - April 15, 2020
d. first installment of estimated tax payment for Year 2020 - April 15, 2020.
B. For Taxpayers whose returns have a filing due date of April 15, 2020, the PRTD extended the deadline as follows:
a. extended filing deadline - May 15, 2020
b. deadline to request extension to file - May 15, 2020
c. income tax payment to accompany income tax returns - May 15, 2020
d. first installment of estimated tax payment for Year 2020 - May 15, 2020
III. OTHER TYPES OF TAXES WITH ORIGINAL DUE DATES BETWEEN MARCH 15, 2020 AND APRIL 15, 2020
A. For the returns and declarations for any other type of tax (not including income tax or SUT), the PRTD extended the filing due date for one (1) additional month after its original due date. This extension includes payments related to "Other Taxes" whose original deadlines were between March 15 and April 15, 2020.
IV. BONDS POSTED BEFORE THE PRTD
A. All Bonds posted before the PRTD with an expiration date between March 15 and March 31, 2020 will be automatically extended until April 30, 2020.
V. INTERNAL REVENUE LICENSES
A. All Internal Revenue Licenses issued by the PRTD with an expiration date between March 15 and March 31, 2020 will be automatically extended until April 30, 2020.
Failure to properly or timely file tax returns and payments will result in the imposition of interests, fines, and penalties.
Do not hesitate to contact us should you need assistance in tailoring your business' response to this crisis. Our Firm will continue to remain available to all our clients. Our attorneys are monitoring actions by the Federal Government, the Commonwealth of Puerto Rico, and local municipalities as additional measures are put into place to mitigate and lessen the extent of this crisis. At Goldman Antonetti & Cordova LLC, we look forward to providing client-focused assistance on how to respond to current events to minimize negative effects on your business.
