PRTD AD 22-08 contains measures to address current challenges taxpayers are facing due to Fiona's passing through the island
Due to the challenges that taxpayers on the island are facing because of the devastation caused by Hurricane Fiona, such as power outages and the interruption of the telecommunication systems, the Puerto Rico Treasury Department (PRTD) has anticipated that taxpayers and authorized representatives might encounter potential difficulties trying to comply with their tax responsibilities.
Therefore, on September 27, 2022, the PRTD issued Administrative Determination 22-08 (AD 22-08) to implement important measures that address this situation. For your convenience, we have summarized these measures below:
Tax Returns Filings and Payments
Automatic extension to file any tax return with a deadline between September 30, 2022, and December 14, 2022, or its request for extension, until December 15, 2022, for individuals, corporations, pass-through entities, and other legal entities with a deadline within the previously mentioned dates.
- Any tax return for which a request for extension is filed by December 15, 2022, will be extended for a 6-month period until June 15, 2023.
- The new December 15, 2022 deadline extension also applies for all payments due with the income tax returns, and the payment of the second installment of the 2021 Individuals Income Tax Return.
Sales and Use Tax Return (SUT)
Deadline extension until October 20, 2022, to file the monthly sales and use tax returns and pay the SUT deposits which were due on September 20, 2022.
- The following returns and deposits are not included in the extensions mentioned above and their due date remains unchanged:
- SUT returns – except for the period of August 2022
- Excise taxes
- Taxes on alcoholic beverages
- Excise taxes for foreign corporations
- Income tax withholdings on wages
- Tax withholding on services rendered
- Withholding at source
Temporary SUT Certificate of Exemption for Merchants
The PRTD will automatically issue a Certificate of Exemption to allow SUT free imports and purchases of taxable items for resale to all merchants who have a valid Reseller Certificate at the time of issuance of AD 22-08. The Temporary Exemption Period will be from October 1, 2022, through October 31, 2022.
Bonds with the PRTD
An extension was issued until November 18, 2022, for every bond with a due date between September 19, 2022, and November 18, 2022.
Claims for Notifications of Mathematical Errors and Return Adjustments
Claim submission periods with a deadline between September 19, 2022, and November 18, 2022, are extended until November 18, 2022.
Notices of Collections, Bank Liens and Other Liens
Issuance of notices is halted until November 18, 2022. All programmed liens and liens for which the 30 days since their notification have not expired, were cancelled.
Tax Payment Plans
Taxpayers who have failed to comply with their current payment plans because of the economic consequences of Hurricane Fiona, and had their payment plan become ineffective, will be able to request new Payment Plans before December 31, 2022.
Internal Revenue Licenses
Due date extension until November 18, 2022, for the renovation of all licenses administered by the PRTD that are due for renovation from September 19, 2022, and before November 18, 2022.
Special Distributions of Retirement Plans and IRAs
Given the state of emergency that has been declared, a special distribution of retirement plans and IRA accounts will be allowed from October 6, 2022 through December 31, 2022. No penalty will be imposed upon the withdrawals and the first $10,000 dollars will not be subject to taxes.
Qualified Payments for Disaster Relief
Applicable qualified payments made from September 19, 2022, through December 31, 2022, will be excluded from gross income.
Loans to Employees and Independent Contractors for Disaster Relief
Loans issued by employers to their employees or independent contractors from September 19, 2022, through December 31, 2022, to cover the applicable expenses and costs resulting from the declared emergency will be excluded from gross income.
Procedures before the PRTD
Administrative deadline extension until November 18, 2022, for procedures that are not provided though SURI and for which filing due dates fall between September 19, 2022, and November 17, 2022.
At RSM Puerto Rico we can provide you with additional information and advice regarding these matters. Please contact our tax advisors at (787) 751-6164 | [email protected] for help or more information.