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June 19, 2020
Puerto Rico enacts additional COVID-19 stimulus measures with implications for tax years 2019 and 2020
On 14 June 2020, Puerto Rico’s Governor signed into law a second round of measures to boost the economy and help support small and medium-sized businesses amid the COVID-19 pandemic.
The new legislation, Act 57-2020, titled the Complementary Law to Address the Effects to the Puerto Rican Economy Caused by the COVID-19 Emergency, includes several important changes, mainly for tax years 2019 and 2020. Notably, among the stimulus measures, Act 57-2020:
Act 57-2020 also codifies various administrative measures, including the extension of deadlines for filing certain informative returns and tax forms.
Taxpayers should be on the lookout for implementation guidance from the Puerto Rico Treasury Department (PRTD) so they can apply the measures that may be relevant to them. For example, taxpayers that have already filed their income tax returns and paid the alternative minimum tentative contribution of US$500 will be able to claim a refund for that amount and receive the refund within 45 days of their request. The PRTD must promulgate the procedures to follow and the form to use to request the refund. Similarly, merchants that have already collected the IVU on services and designated professional services need to evaluate how to manage the three months that were free from IVU, depending on what is included in the rules that are expected from PRTD.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Puerto Rico LLC, State and Local Taxation Group, San Juan