4 March 2016
Global Tax Alert
News from Americas Tax Center
Puerto Rico issues
guidance on
mandatory electronic
filing of individual
income tax return
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Circular Letter 16-02 (CL 16-02), issued on 17 February 2016, by Puerto Rico’s
Treasury Department (PRTD), provides guidance on the mandatory electronic
filing requirement for 2015 individual income tax returns.
Electronic filing requirement
The following individuals must file their individual income tax returns electronically:
•Single or married residents of Puerto Rico whose gross income for the tax
year, net of exemptions, exceeds US$5,000
•Single or married nonresidents of Puerto Rico who are citizens of the United
States and whose gross income from Puerto Rico sources for the tax year, net of
exemptions, exceeds US$5,000 (unless the tax has been totally paid at source)
•Nonresident aliens who during the tax year had taxable gross income from
Puerto Rico sources (unless the tax has been totally paid at source)
•Individuals who during the tax year had net income subject to an alternate
basic tax of US$150,000 or more
The PRTD will not accept the filing of paper returns unless the taxpayer
qualifies for one of the exceptions to the electronic filing detailed below. The
PRTD will treat paper filers who should have filed electronically as not having
filed and subject to late-filing penalties.
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Individuals who qualify under one of the electronic filing
exceptions must file a Form 483.2, Exception to Electronic
Filing of the Individual Income Tax Return, with their paper
return. The PRTD will not accept paper returns without a
Form 483.2.
Individuals must file an amended return electronically if they
filed their original return electronically. Likewise, individuals
who filed their original return on paper must file an amended
return on paper and attach Form 483.2.
Exceptions to electronic filing requirement
The following taxpayers are exempt from the electronic filing
requirement and must file on paper:
•Individuals who are partners or shareholders of a passthrough entity whose tax year ends before 31 December
2015
•Nonresident individuals of Puerto Rico who only sell real
property in Puerto Rico after 31 December 2015, and
are requesting the refund of the amount withheld under
Section 1962.08(g)(3) of the Puerto Rico Internal Revenue
Code of 2011, as amended (PR Code)
•Individuals claiming a deduction for an initial investment in
a private capital fund or a Puerto Rico private equity fund,
under Act 185-2014
•Individuals with pension income reported on Form 1099-R
of the US Internal Revenue Service and subject to the
exemption of US$11,000 or US$15,000
•Individuals reporting exempt income under a Special
Agreement for the Creation of Young Businesses issued by the
Puerto Rico Trade and Export Company under Act 135-2014,
as amended
•Individuals claiming certain tax credits on Schedule B, Part
II and IV (except paragraph 14, Part II of Schedule B)
•Individuals claiming the American Opportunity Credit
•Individuals who are subject to a reduced tax rate in
accordance with a Special Agreement for the Creation of
Jobs issued by the Puerto Rico Trade and Export Company
under Act 1-2013, as amended
•Individuals who are transferred outside Puerto Rico during
a warlike conflict and receive income for active military
service in a “combat zone” for a tax year beginning after
31 December 2014
•Individuals claiming a deduction for contributions to
governmental pension or retirement systems in excess
of the contributions reported on Form 499R-2/W-2PR or
Form 499R-2c/W-2cPR
•Individuals who are required to use Form AS 2668.1, Back
Pay, to determine their corresponding income tax
•Individuals who must file Audited Financial Statements
issued by a CPA in Puerto Rico because they have
aggregate gross income on Schedules K, L, M and N in
excess of US$3 million during the tax year
•Foreign individuals who are not residents of Puerto Rico
with income from a trade or business in Puerto Rico under
Section 1035.05 of the PR Code
•Individuals who file a return for the first time and receive a
notification while trying to electronically file because of an
error with the social security number
•Individuals claiming a foreign tax credit for taxes paid to
foreign countries, the United States, its territories and
possessions, according to the PR Code
•Individuals who are filing a return under Option 94, as
provided in Section 1021.04 of the PR Code
•Individuals deceased during the year or surviving spouse
who files another income tax return for the same tax year
Compliance with the electronic filing requirement
Individuals may complete a return through a program or
certified application listed on the PRTD’s website. Individuals
may access the list by selecting the tab labeled, “PRTD Certified
Providers for Electronic Filing.” Payment may be made at the
same time the return is filed or individuals may authorize a
debit from a bank account no later than 15 April 2016.
Filing paper returns
All individuals eligible to file paper income tax returns may
file their returns and Form 483.2 at the following locations:
•In person, at the PRTD’s headquarters, Building Intendente
Ramirez, 10 Covadonga Street, San Juan or by mail
at: Treasury Department, PO Box 9022501, San Juan,
PR 00902-2501
•Orientation and Return Preparation Centers located at
the following commercial centers: Plaza Las Americas,
Plaza Carolina, Beltz Outlets in Canovanas, Ponce Mall and
Mayagüez Mall (Centers)
Global Tax Alert Americas Tax Center
•Taxpayer Service Centers located in San Juan, Ponce,
Mayagüez and Barceloneta
•Collection Bureau Offices
Automatic extensions
The PRTD will only accept the request for automatic
extension of time to file the income tax returns (automatic
extension) electronically. Automatic extensions filed on
paper will be accepted only if there was a social security
number error at the time of filing; the automatic extension
must be accompanied by Form 483.2. The Centers will be
available to complete and electronically file the automatic
extension for employed and retired individuals. The payment
for the automatic extension can be made through direct
debit or credit card. For direct debit payments, the taxpayer
must present a check to confirm the checking account and
photo id. To pay in cash, personal check, ATM, Visa or Master
Card, the taxpayer must visit any of the collection bureaus;
these payment methods are not available at the Centers.
Implications
Individuals who have been filing automatic extension
requests or returns in paper form should take notice of these
changes to ensure compliance with their filing obligations.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Puerto Rico LLC, San Juan
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Teresita Fuentes
Rosa M. Rodriguez
Pablo Hymovitz
Israel Maldonado
Nelson Maldonado
Alberto J. Rossy
+1 787 772 7066
+1 787 772 7062
+1 787 772 7119
+1 787 772 7204
+1 787 772 7168
+1 787 759 8212
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