The Puerto Rico Treasury Department has issued Administrative Determination No. 18-07, which determines to grant all taxpayers who file a request for automatic extension to return file for 2017, a total term of 6 months, instead of the term of 3 months established in the Code. The extension of the term of 6-months of the automatic extension provided by this Administrative Determination is applicable for the taxable year 2017 (that is, taxable years started during the year 2017), so that the same will apply to taxpayers with closing of the taxable year that is a calendar year or economic year. These additional 3 months are provided due to the impact of Hurricane Maria, which several businesses are still recovering from, resulting in a delay in accounting for operations.
However, in the case of the 2017 return, that taxpayer who has filed an automatic extension request to file their return and that at the time of filing their 2017 return has a balance of contribution pending payment, may request the cancellation of surcharges applicable for late payment subject to compliance with all of the following requirements:
- Submit the request for automatic extension as provided in CC RI 18-04 no later than the expiration date of the 2017 return.
- To return the 2017 return not later than 6 months counted from the date established for the filing of said return (that is, the extended date as provided in Part III-A of this Administrative Determination).
- Submit the total payment of the tax owed, including the amount of the accrued interest, together with the filing of the 2017 return.
