Volume of Business Declarations 2021 Deadline

March 26, 2021

CIRCULAR LETTER NO. 008-2021

MAYORS, DIRECTORS OF FINANCE

AND OFFICIAL COLLECTORS

Juan Carlos Blanco Urrutia

director

Hen. Pedro R. Pierluisi

Governor

Atty. Juan Carlos Blanco Urrutia

director

AMENDMENT TO CIRCULAR LETTER NO. 007-2021 OF MARCH 11, 2021;

REGULATORY PROVISIONS FOR THE MUNICIPAL PATENT 2021-2022

LEGAL BASE

By virtue of the powers conferred by Article 3 of Law No. 147 of June 18 1980, as amended, known as the "Organic Law of the Office of Management and Budget "and Article 2,097 of Act No. 107-2020, as amended, known as "Municipal Code of Puerto Rico" (hereinafter "Code"), the Office of Management and Budget promulgates the guidelines necessary for the administration and compliance of Chapter III of the Code on Municipal Patents.

APPLICABILITY

The provisions contained in this Circular Letter will be applicable to all municipalities of Puerto Rico.

 REGULATORY PROVISIONS

I. FILING OF THE DECLARATION OF TURNOVER AND DISCOUNT

 Subsection (a) of Article 7.207 of the Code provides on the date for the Filing of the Declaration of Business Volume the following:

 "Article 7.207- Filing of declaration.

(a) Date for lrz Declaration

(1) General rule. Any person subject to the payment of a patent or his authorized agent

will be obliged to file a declaration of business volume, sepin will

provided in the Code, on or before five (5)

as of April 15 of each taxable year. "

 In Circular Letter 007-2021 issued on March 11, 2021, it was determined that according to provided in the Regulation for the Municipal Administration of 2016 (Regulation 8873), the deadline to submit the Declaration for fiscal year 2021-2022 or for to submit the Extension was April 22, 2021, this because the deadline for filing of income tax published by the Department of the Treasury It was April 1, 2021.

 Subsequently, on March 23, 2021, the Department of the Treasury published the Administrative Determination 21-04 by which it extends the deadline of filing of the income tax returns for the taxable year 2020, up to on Monday, May 17, 2021.

 Consequently, and in accordance with the provisions of Section 9 of Chapter X of the Regulation 8873, establishes that the deadline for filing the Declaration for the fiscal year 2021-2022 will be May 24, 2021. In addition, it is clarified that the Extension It must also be submitted no later than May 24, 2021. Likewise, those businesses that wish to benefit from the 5% discount for the total payment of the contribution with the filing of the Declaration of Business Volume or the request for extension, They will have until May 24, 2021 to submit the payment and be able to benefit from 5% of discount established in the Code.

 Now, taking into consideration that the deadline for requesting an extension for this year will be May 24, 2021, if the municipality grants the requested extension to the taxpayer for a maximum period of 6 months, the expiration date of this will be on November 24, 2021.

 The expiration dates for the collection of interest and additions to the Patent are extended

for failing to file the Declaration of Business Volume for this year as follows:

The other normative provisions contained in the Charter remain unchanged. Circular No. 007-2021, issued on March 11, 2021.

We urge you to faithfully comply with the guidelines established in this Charter. Circular. We also recommend that you verify that your accounting systems mechanized compute the interests, penalties and surcharges, coniorme to the dates previously established.

For more information, you can contact the Municipal Management Director at number (787) 725-9420 extension 2421 or through the electronic mail presupuestomunicipal@ogp.pr.gov.