2023 Puerto Rico Direct and Indirect Annual Statutory Tax Returns – When and where to file
January 18, 2023
Income Tax Returns – Puerto Rico Treasury Department
The Puerto Rico Internal Revenue Code (“Code”), Section 1061.16, establishes the time and place for filing the required income tax returns with the Puerto Rico Treasury Department, being every April 15 the main income tax due date for individuals and corporate taxpayers with calendar year-end. For those years in which the due date falls on a holiday or weekend, the due date to file will be the next labor day. Since April 15, 2023, falls on Saturday, the due date to file the 2022 income tax return will be April 17, 2023. For those corporations reporting based on fiscal year-end, the time for filing will be on or before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.
The Code allow taxpayers to request an automatic 6th month extension of time to file the income tax return by completing and filing the Form SC 2644. If requested on or before the original due date of the return, the extended due date for individuals and calendar year-end corporate returns will be on October 17, 2023. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the extension to avoid interest and surcharges.
For those entities under the Chapter 7 of the Code (“pass-through/partnership” entities), the time to file the required Informative Income Tax Return Pass-through Entity, Form 480.2(EC) is March 15, 2023 for calendar year-end taxpayers. For fiscal year-end pass-through/partnership entities, the time for filing will be on or before the fifteenth (15th) day of the third (3rd) month following the close of the fiscal year. Like individuals and corporations, the pass-through/partnership entities are allowed to request the automatic 6th month extension of time to file the income tax return. If requested, the extended due date for those calendar year-end taxpayers will be September 15, 2023.
Electronic filing mandates are required for all Individuals and most of the corporate and pass-through/partnership income tax returns (with few paper-filing exceptions).
Also, any individual having 2023 estimated income tax requirements, will be required to pay four (4) equal installments on the following dates: April 17, 2023, June 15, 2023, September 15, 2023, and January 15, 2024. For corporations, partnerships, and other entities, the four (4) estimated tax installments are due on the fifteenth 15th day of the fourth month of the taxable year (Q1), fifteenth 15th day of the sixth month of the taxable year (Q2), fifteenth 15th day of the ninth month of the taxable year (Q3) and fifteenth 15th day of the twelfth month of the taxable year (Q4). All persons with requirements to pay estimated tax must do so via electronic means only by using the Unified System of Internal Revenue portal (SURI).
Corporate Annual Report – Department of State
The General Corporation Law requires that any foreign corporation authorized to do business in Puerto Rico as well as domestic corporation complies with their Corporate Annual Report and payment of the annual fees. The 2022 Corporate Annual Report must be completed and e-filed through the Department of State’s portal on or before April 17, 2023. An extension of time to file valid up to June 20, 2023 can be requested by making an advance payment of the Annual Report fees. Additional two (2) month extension can be purchased from April 18, 2023 through June 20, 2023 for the Annual Report (1st extension). The additional two (2) month extension will be valid up to August 21, 2023.
Also, Limited Liability Companies must pay its annual dues on or before April 17, 2023 through the Department of State’s portal.
Volume of Business Declaration – Municipality
The Puerto Rico Municipal Code requires that any person engaged in trade or business within the territorial limits of a municipality, pay the corresponding gross tax receipts through the filing of the Volume of Business Declaration, Form OCAM PA 01. The due date to file the declaration is April 24, 2023. The payment of the tax can be made: 1) in full on or before April 24, 2023 with a 5% discount or, 2) in two (2) equal installments, without the 5% discount, on or before the following dates:
- July 1, 2023
- January 2, 2024
The Municipal Code allows taxpayers to file a 6-month extension of time to file the volume of business declaration, Form OCAM PA03. If requested, the extended due date is valid up to October 24, 2023, unless a letter from the Municipality is received granting a lesser period.
It is important to mention that some municipalities implemented electronic mandates in terms of filing and payment of the declaration. If you have any question regarding the requirements in your municipality, please contact us.
Personal Property Tax Return – Municipal Revenue Collection Center (CRIM)
The Puerto Rico Municipal Code requires that any person engaged in trade or business and owning personal property in Puerto Rico complete and file the Personal Property Tax Return, Form AS-29i. The assessment date of the personal property value is made every January 1st. The due date to file the return and pay any balance due related to tax year 2022 is May 15, 2023.
The Municipal Code allows taxpayers to file a 3-month extension of time to file the personal property tax return. If requested, the extended due date to file the return will be August 15, 2023. It is important to note that extending the time for filing does not extend the time for paying the tax due. Any balance of tax due needs to be paid on time along with the return or extension to avoid interest and surcharges.
Any individual or juridical person having 2023 personal property estimated tax requirements, will be required to pay four (4) equal installments on the following dates: August 15, 2023, November 15, 2023, February 15, 2024, and May 15, 2024 (along with the return or extension).
CRIM imposes electronic mandates for the filing and payment of personal property tax, and therefore, any filing or payment must be made through the established CRIM’s portal.
At KRESTON PR, LLC we are ready to assist you. Contact us for additional information.
KRESTON PR, LLC
1509 FD Roosevelt Avenue Suite 303 / Guaynabo, PR 00968-2612
PO Box 193488 / San Juan, PR 00919-3488
Tel. (787) 646-4611 / Fax (787) 764-8688 Web: www.krestonpr.com / www.kreston.com
Email Taxes: firstname.lastname@example.org
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