The Puerto Rico Treasury Department (PRTD) has extended (Administrative Determination (AD) 21-04) the due date for filing income tax returns and paying the corresponding tax from 15 April to 17 May 2021, for individuals, estates and trusts (taxed as individuals), calendar-year-end corporations and other entities taxed as corporations (collectively taxpayers).
The extended due date also applies to entities that have a short tax year or a fiscal year 2020 and must file a tax return for tax year 2020 on or before 15 April 2021.
Because the new due date substitutes for the original due date established by the 2011 Puerto Rico Internal Revenue Code, as amended, the six-month extension of time for filing will count from 17 May 2021. Therefore, taxpayers that need additional time to file their tax returns for tax year 2020 may submit a request for an automatic extension of time to file the income tax return on or before 17 May 2021. While the return filing date will be extended to 17 November 2021, the tax payment is still due on 17 May 2021.
Individuals who qualify to pay the income tax balance due for 2020 in two installments, with the first installment due on 17 May 2021, will have until 17 November 2021 to pay the second installment, instead of 15 October 2021.
Additionally, for taxpayers required to make their first estimated tax payment on or before 15 April 2021, the PRTD allows taxpayers to make the first payment on 15 June 2021, with the second estimated tax payment.
Implications
AD 21-04 only applies to individuals, estates and trusts (taxed as individuals), calendar-year-end corporations and other entities taxed as corporations. Entities that file as pass-through entities and were required to file their income tax return on or before 15 March 2021 should refer to EY Global Tax Alert, Puerto Rico’s Treasury Department extends the time for pass-through entities to file their returns to 15 April, dated 15 March 2021, for extended due date information. The determination under AD 21-04 does not apply to them. The PRTD clarified in a supplement to AD 21-03 that the extension for pass-through entities applies to all types of pass-through entities.
For insurance companies, not-for-profit corporations, and corporations that receive benefits under any of the Tax Incentives Laws and have a calendar year-end, the due date to file these income tax returns is not affected by AD 21-04 and continues to be 15 June 2021.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Puerto Rico LLC, State and Local Taxation Group, San Juan
Rosa M. Rodríguez
Pablo Hymovitz Cardona
María T. Riollano
Alberto J. Rossy
Alexandra M. Pérez
Carla J Diaz
Karol I. Santiago
Marcel Ramos
Isabel Rivera
Noeliz Suarez
Luz Grycell Rivera
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
