Law 60 of July 1, 2019, Law 60-2019, stipulates that any entity that either provides or pays for telecommunications, internet, satellite, or cable TV services in Puerto Rico must file an annual informative declaration to all commercial or residential clients. The requisite applies from 2019 thereon. The Withholding Vouchers and Informative Declarations for 2019 must be filed using new Form 480.7E—Informative Declaration-Ads, Insurance Premiums, Telecommunications Services, Internet and Cable or Satellite TV Access.
However, in response to the requests and observations made by the insurance and telecommunications industry as well as from various professional associations, the Department issued Administrative Determination No. 19-08 to inform that, only for 2019, the person required for the preparation and filing of Form 480.7E will be the person that made the payment and not the provider of the telecommunications and insurance services.
The Department also states that any business or industrial taxpayer that has paid for ads, insurance premiums, telecommunications services, or Internet and Cable or Satellite TV Access and that wants to deduct these payments to determine the gross income subject to the alternate basic tax or to income subject to the minimum alternate tax, must inform of such payments through filling Form 480.7E no later than February 28, 2020. In addition, the form must be filed electronically through SURI.
On the other hand, any person natural or legal engaged in the provision of telecommunications, internet and TV services or that receives payments for ads and insurance premiums must provide each client the following information:
- For natural persons, full name, including both surnames; for legal entities, the legal name.
- Physical and postal address
- Social Security Number or Employer’s ID number
The information must be sent to all clients no later than January 30, 2020.
The TD emphasizes that the exceptions announced on DA 19-08 will be in effect only for 2019 in order to give the insurance, telecommunications, and advertising industries additional time for making the changes to their systems and retrieving the data required by Law 60-2019.
All payments received after December 31, 2019, for telecommunications, insurance, internet, and TV access services, or for insurance premiums must file an annual informative declaration to all commercial or residential clients. The original must be provided to the payer no later than February 28 following the natural year. A copy of the declaration must be filed before the Secretary.
