On 14 June 2020, the Puerto Rican Office of the Governor has signed Law 57-2020 “Complementary Law to Address the Effects of the Puerto Rican Economy Caused by the COVID-19 Emergency”. The new legislation includes the following main tax measure:
- Allows losses of the tax year 2020 be carrying back to the previous 2 years with certain limitations for the taxpayers with annual turnover of up to USD 10 million. The maximum amount of loss will be $200,000 and the maximum refund is capped at $50,000;
- Eliminate the 4% tax for services rendered to other merchants (known as B2B) for three months (April, May, and June);
- Establish a relief from withholding for professional services rendered from 23 March to 30 June the obligation to collect the 10% income tax withholding;
- Eliminates alternative minimum tax of minimum $500 for the tax year 2019;
- All taxpayers with due dates between 15 March and 15 June 2020, have an automatic extension to file their 2019 income tax return to 15 July 2020;
- Information declarations filing deadline for the year 2019 are extended up to 31 May 2020;
- Automatically six months extension of certain licenses and permits required in commercial activity
