Puerto Rico Limits Suspension of Sales Tax Bi-weekly Remittance Requirement

The Puerto Rico Hacienda modified an announcement initially made via their Facebook page several days ago that substantially limits the suspension of their requirement to make bi-monthly pre-payments of sales tax. Specifically, Hacienda issued Administrative Determination 17-15 on October 2. The Determination indeed suspends the bi-weekly pre-payment of sales tax, but only for medium and small taxpayers. For qualifying taxpayers, the suspension will run from September 1, through November 30, 2017.

 

Under the Directive, “Big Taxpayers” are specifically excluded from the suspension. They are expected to continue to make tax payments as required under the law. According to the Tax Code of Puerto Rico, Big Taxpayers are defined as those entities doing business in Puerto Rico and during the previous year (2016) conducted $50m or more in total business. Entities such as commercial and private banks, brokerage firms, insurance companies and telecommunications providers are considered big taxpayers regardless of revenue. 

Author

Ramon Frias

Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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