PR Delays Individual and Corporate Tax Return Deadline to May 17, 2021

Individuals and Corporations with expiration of the Income Tax Return for the Tax Year 2020 on April 15, 2021

Administrative Determination DA 21-04 03/23/2021 Internal Revenue

I. Statement of Reasons

Section 1061.16 (f) of the Puerto Rico Internal Revenue Code of 2011, as amended (“Code”), empowers the Secretary (“Secretary”) of the Department of the Treasury (“Department”) to establish the new deadline for the filing of returns related to taxable year 2020. Likewise, Section 1061.17 (h) of the Code empowers the Secretary to establish the new deadline for the payment of income taxes owed with income tax returns for taxable year 2020.

As a general rule, individuals, trusts, estates, corporations and other legal entities (collectively the "Taxpayers") have the obligation to submit the Income Tax Return ("Return") no later than the fifteenth (15th) day of the fourth (4th) month following the closing of the taxable year. In the case of Taxpayers whose annual accounting period closes on December 31, that is, based on a calendar year, they must submit the Return no later than April 15 of the next year. Therefore, all Taxpayers who file their Return based on a calendar year are required to submit the Return for taxable year 2020 on or before April 15, 2021.

The Department's team of programmers is working hard on all the programming for the 2020 tax cycle within the limitations that the COVID-19 pandemic has brought to both the private sector and the government. In addition, the Department is already working on the programming of the new economic stimulus package as approved by Federal Law PL 117-2 of March 11, 2021, known in English as the American Rescue Plan Act of 2021, so what, so As soon as the Distribution Plan is approved by the Federal Treasury, the money can be sent to the residents of Puerto Rico as soon as possible.

The Department issues this Administrative Determination in accordance with the provisions of Sections 1061.16 (f) and 1061.17 (h) of the Code, with the purpose of notifying the new deadline for filing the Return for taxable year 2020 of those Taxpayers whose period closing annual accounting is December 31, 2020 (that is, Taxpayers who file their return based on a calendar year) and its original expiration date according to the Code is April 15, 2021. 

II. Statutory Basis

Section 1061.16 (f) of the Code empowers the Secretary to establish the new deadline for filing returns related to taxable year 2020, whose expiration according to the Code, are on or before April 15, 2021, as long as said new The deadline is no later than June 15, 2021. Likewise, Section 1061.17 (h) of the Code empowers the Secretary to establish the new deadline for the payment of any income tax for taxable year 2020, whose due dates are in or before April 15, 2021.

The Secretary, exercising the power conferred by law, has determined to establish a new expiration date for the Income Information Sheets of those taxpayers who, according to the provisions of Subchapter A of Chapter 6 of Subtitle A of the Code, have the obligation to submit said forms no later than April 15, 2021. 

III. Determination

Every Taxpayer who files his Return based on the calendar year 2020 and who, according to the provisions of Subchapter A of Chapter 6 of Subtitle A of the Code, has the obligation to submit said Return no later than April 15, 2021, will have up to on Monday, May 17, 2021 to file the same. Similarly, any balance owed with said Return must be paid no later than Monday, May 17, 2021.

The provisions of this Administrative Determination will also apply to any Taxpayer who has the obligation to file the Return for the 2020 taxable year on or before April 15, 2021 based on a short year or a 2020 fiscal year.

The new deadline established in this Administrative Determination is in substitution of the original expiration date established by the Code for taxable year 2020. Therefore, any entity that requires additional time to submit the return for taxable year 2020 will have until the 17th of May 2021 to submit an automatic extension request. Said request for an extension will have a term of 6 months as of May 17, 2021. The request for extension allows to extend the filing deadline date, but does not extend the payment date. Therefore, if the request for an extension is accepted, the balance of the tax owed, if any, must be attached with the request to avoid the imposition of interest, surcharges and penalties.

As a result of this postponement, the deadline to make the second installment of the individual income tax determined in the 2020 Taxable Year Return is automatically postponed until Wednesday, November 17, 2021. Therefore, all individuals eligible to pay The income tax determined in the Tax Year 2020 Return in two installments, may pay the first installment with the filing of said return no later than May 17, 2021 and the second installment no later than November 17, 2021.

In addition, in the case of taxpayers required to make the payment of the first installment of the estimated tax for taxable year 2021 on or before April 15, 2021, the Department determines to postpone the deadline for said term until Tuesday, June 15 2021. Therefore, all taxpayers who take advantage of this postponement must pay both the amount of the first installment and the amount of the second installment of the estimated tax for the year 2021 no later than Tuesday, June 15, 2021.

IV. Validity

The provisions of this Administrative Determination are effective immediately.

For additional information related to the provisions of this Administrative Determination, you can send a message through your SURI account.

Cordially,

Francisco Parés Alicea
Secretary