CRIM Extends the Period to Request the Tax Exemption on Newly Constructed Residential Properties

 

By means of its Administrative Order No. 2018-08 (OA 2018-08), the Municipal Revenue Collection Center (CRIM) extends to October 31, 2018, the period for which property developers, mortgage creditors, and buyers of newly built residential properties may request the tax exemption established by law.  The extension granted responds to the economic crisis Puerto Rico has been suffering for over a decade worsened by the passing of hurricanes Irma and María.

The extension is available retroactively to fiscal year 2012-2013 and applies to any mortgage creditor, buyer of a newly built residential project, or to newly built homes to be rented and of which the exemption application has not yet been completed.

Requisites

Entities or individuals that apply retroactively for the exemption must comply with the following requisites:

  1. A change in ownership or control must have occurred between the new buyer and the original developer, who did not request his right to the exemption at the beginning.
  2. The new developer, mortgage creditor, or new buyer must have paid the taxes imposed on the main real estate property or segregated plot of land on or before the year 2011.
  3. The new developer, mortgage creditor, or new buyer must have previously paid any tax debts for the main real estate property before the division.

The new developer, mortgage creditor, or new buyer must file the retroactive exemption request on or before October 31, 2018, by means of a signed sworn statement.  It must comply with the requisites established by law and must include a detailed inventory of the properties subject to exemption.  The application must be presented in person or sent by mail to CRIM’s Headquarters or to any of its nine (9) regional offices.

NOTE: We remind you that TCG is available to clarify any doubts, bring you detailed information, and assist you with any action to be taken in this regard.

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