By Patricia Wangen | July 07 2020


As part of local incentive measures to help cash-strapped taxpayers suffering from the effects of the COVID-19 pandemic, Puerto Rico Treasury Department (“PRTD”) published Administrative Determination 20-10 (“AD 20-10”) back in March to, among other things, allow taxpayers to apply certain tax overpayments against other tax regimes imposed by the Puerto Rico Internal Revenue Code of 2011, as amended (“Code”) (see our Business Insight Issue 11 March 2020). With the recently published Circular Letter 20-28 (“CL 20-28”), PRTD outlined the process details for this type of request (“Transfer Request”).

By Dialy Otero | May 20 2020

Puerto Rico Act 40 of 2020 changes the requirements for Act No. 22 and Act No. 60 Individual Resident Investors

On April 16, 2020, the Governor of Puerto Rico signed into law Act No. 40 of 2020 bringing significant “technical” amendments to the Island’s tax system, including, the recently approved Puerto Rico Incentives Code; its predecessor incentives Acts, (namely Acts 20 and 22); as...

By Guardin Sosa, Esq. and Patricia Wangen | May 15 2020

General Physicians have until June 30th to File Request for Tax Incentives

On April 28, 2020, the Governor of Puerto Rico signed into law House of Representatives Bill No. 2375, that became Act 47-2020 amending the Puerto Rico Incentives Code (the “Code”) to broaden the extent of the qualified medical physicians definition to include all health...

By Patricia Wangen and Nelson R. Maldonado | May 14 2020


On April 16th, 2020, the Governor of Puerto Rico signed into law Act No. 40 of 2020 (“Act 40-2020”) to, among other things, amend certain provisions of the Puerto Rico Internal Revenue Code (“PR IRC”). As we continue to study the amendments brought by Act 40-2020 to our tax...

By Dialy Otero | May 12 2020

Individuals might lose P.R. bona fide residency status during COVID-19 emergency

People across the world have been affected by the dislocation caused by the COVID-19 emergency.  Many individuals have left the Island or have been unable to return to P.R. during the past couple of weeks or even months. As a result, some individuals who expected to comply...

By Dialy Otero and Gaby Hernandez | May 06 2020

IRS Issues Cross-border Tax Guidance Related to Travel Disruptions Arising From COVID-19 Emergency

The Internal Revenue Service issued several revenue procedures providing tax relief to certain individuals and businesses affected by travel disruptions arising from the COVID-19 emergency. Said advice, we have confirmed, does not waive the minimum days of physical presence...

By Patricia Wangen and Nelson R. Maldonado | May 05 2020

Relief Over Distributions from Qualifying Retirement Plans

In the aftermath of the earthquakes experienced since December 2019, many Puerto Rico residents have been forced to incur unexpected expenses, causing financial hardship among Puerto Rican families. Pursuant to such hardship, on February 19, 2020, the Puerto Rico Department of...

By Nelson R. Maldonado | April 17 2020

IRS Amplifies Tax Relief

The Internal Revenue Service (“IRS”) issued Notice 2020-23 which amplifies the relief provided in Notice 2020-18, and Notice 2020-20, giving additional relief to affected taxpayers, postponing due dates with respect to certain government acts and postponing the application...

By Nelson R. Maldonado and Patricia Wangen | April 13 2020

Local Tax Authorities Extend Due Dates

Considering the ongoing Coronavirus (COVID-19) outbreak various local taxing authorities issued further guidelines to extend due dates for filing tax returns and/or remitting certain tax payments.