At the end of December of each year, the Treasury Department (TD) automatically issues the partial and total waivers from the 7% withholding. Individuals or entities to which this waiver is granted receive a Waiver Certificate from Withholding at Source for Services Rendered. With this purpose the TD published Circular Letter No. 18-15 (CC RI 18-15) to establish the new procedure for the issuing of the Automatic Waiver, and on the process for requesting the Waiver and the New Business Exemptions for 2019.
Beginning on December 10, 2018, those taxpayers that qualify for the Automatic Waiver and have an active SURI account will receive their certificate for 2019 electronically. Thus, the TD will not be sending those Waivers by mail.
Criteria to Receive the Automatic Waiver
The organizations or entities that qualify for this waiver are as follow:
- Those Corporations that are up to date with their tax responsibilities, that show in their Income Tax Return a business volume of three million dollars ($3,000,000) or more, which includes income for sales and commissions, and that submitted audited financial statements as required by the Internal Revenue Code. A total waiver applies for these cases.
- Those Corporations that are up to date with their tax responsibilities, and show in their Income Tax Return an income for sales or commissions equal to or less than zero. A total waiver applies for these cases.
- Those Corporations that are up to date with their tax responsibilities, and show in their Income Tax Return an income for sales or commissions. A partial waiver applies for these cases.
- Those corporations and partnerships operating within the first three (3) years of having established their business.
Process for Requesting and Issuing of New Business Waivers for 2019
For the year 2019, taxpayers that qualify for the New Business Waiver may request the Certificate electronically through SURI or in person at any of the TD’s offices or centers.
Process for Requesting and Issuing of Partial or Total Waivers for 2019
Those taxpayers that do not receive the Automatic Waiver for 2019 and understand they comply with the criteria established by the Code, may request the Certificate electronically through SURI, in person at any of the TD’s offices or centers, or by phone at Hacienda Responde al (787) 622-0123.
For the year 2019, all Waivers, including Automatic and New Business Waivers will be issued exclusively through their account at SURI. To obtain and print their Waiver they must access their SURI account and press the Mail Posts, click the See Mail Posts option and select Certificate of Partial or Total Waiver link.
NOTE: We encourage you to contact us at TCG to receive detailed information and discuss the ways in which we can assist you.