BDO TAX UPDATES

By Dialy Otero | September 16 2020

TROPICAL STORM ISAIAS MAJOR DISASTER DECLARATION AND THE 14-DAY EXCEPTION RULE

On Wednesday, September 9th, 2020, President Trump declared that a Major Disaster occurred in the Commonwealth of Puerto Rico and ordered Federal individual assistance for the municipalities of Aguada, Hormigueros, Mayagüez and Rincón affected by Tropical Storm Isaias from July 29th to July 31st, 2020.


By Nelson R. Maldonado and Patricia Wangen | June 15 2020

Governor of Puerto Rico Enacts Second Round of Economic Relief Amid Pandemic

On June 14, 2020, the Governor of Puerto Rico signed into law House Bill No. 2468, also known as the “Complementary Act to Address the Impact of the Covid-19 Emergency on the Puerto Rico Economy” (“Act”), in response to the Covid-19 pandemic to bring additional economic relief...


By Guardin Sosa and Esq. | May 26 2020

Clarity for Private Equity Funds and New Tax Credit Refund Exchange Program

Sweeping legislation like the Tax Incentives Code (Act 60-2019) often raises questions on possible oversights. Recently enacted Act 40-2020 tries to address some of the issues raised after the enactment of the Tax Incentives Code: the complete repeal of the Private Equity...


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

CHANGES BROUGHT BY ACT 40-2020 THAT IMPACT THE 2019 TAXABLE YEAR

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...