Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

August 5, 2020
2020-6083

Puerto Rico’s Treasury Department postpones certain filing and payment due dates because of Tropical Storm Isaias

Puerto Rico’s Treasury Department (PRTD), in response to tropical storm Isaìas and the most recent executive order issued by the Puerto Rico Governor on lockdown measures related to COVID-19, has issued Administrative Determination (DA-20-20) postponing, until 7 August 2020, all filing and payment deadlines originally due 31 July 2020.

The determination also provides that penalties will not be imposed for noncompliance with biweekly Puerto Rico Sales and Use Tax (IVU by its Spanish acronym) payments during the month of July 2020, if the total IVU owed for the month is paid with the filed IVU monthly return for that period.

The DA 20-20 further extends the first sales tax holiday period for the purchase of school uniforms and supplies through 4 August 2020. Only items defined in Circular Letter (CL) 20-31, Parts II-A-1 and II-A-2, are exempt from the tax (school uniforms, supplies and textbooks, respectively). See EY Global Tax Alert, Puerto Rico’s sales tax holiday for school uniforms and supplies will run from 29 July through 1 August, dated 31 July 2020 for details.

For filings and payments originally due 31 July 2020, the Treasury Department says it will not impose penalties on taxpayers that demonstrate they have made a good faith effort to comply with the tax code and submit required forms and payments by 7 August. If those requirements are met and a penalty is imposed, the taxpayer may request that the penalty be removed.

For taxpayers that are not able to comply with the IVU biweekly payments requirement for the month of July but file the IVU monthly return for that period and pay the total IVU owed for that month, no penalties will be imposed. If penalties are imposed, a taxpayer may request their removal.

To request penalties removal, taxpayers must file the request through their SURI account and include evidence of filing and payment and a copy of DA-20-20.

Implications

It is very important that taxpayers availing themselves of this extended period comply with the filing and payment obligations of those tax payments, withholding deposits, estimated tax payments and other obligations covered by DA 2020 on or before 7 August 2020.

_____________________________________________________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young Puerto Rico LLC, State and Local Taxation Group, San Juan

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more