(Versión en español “Radicación Planillas Corporativas para el año 2018”)
The Treasury Department (TD) annually issues Form 480.2, “Income Tax for Corporations” (Corporate Tax Return) to be used for filing the tax return for the corresponding tax year. All Corporate Tax Returns must be filed electronically. The requisite applies to all corporations and limited liability companies taxes as a corporation.
On its Internal Revenue Circular Letter No. 19-08 (CC RI 19-08), the TD establishes the due dates for filing the Corporate Income Tax Return.
Due Dates for Filing the Corporate Income Tax Return
For tax year 2018, Corporate Tax Returns filed using the calendar year must be submitted no later than April 15, 2019. Those corporations that use the closing of their financial year must be filed no later than the fifteenth (15th) day of the fourth (4th) month of the closing of their tax year. Foreign corporations that have no office or business located in Puerto Rico must file no later than the fifteenth (15th) day of the sixth (6th) month following the closing of their tax year.
Corporate Tax Returns filed electronically must use one of the TD’s Certified Programs for the preparation and filing of such returns. These Certified Programs are available at the TD’s web page: www.hacienda.pr.gov, 2018 Corporate Tax Return link. Using these programs may be subject to costs established by each provider.
To file the Corporate Tax Return using any of the Certified Programs, the taxpayer must use the user name and password registered at the Virtual Collections Office. If the taxpayer is not already registered, he must complete his registration by clicking the link “Register”.
Professionals that specialize in preparing tax returns or informative declarations and refund claims may use the private program they have acquired to prepare the 2018 Corporate Tax Returns.
Exceptions to Electronic Filing
For tax year 2018, the TD has established a series of exceptions for electronic filing of the Corporate Tax Returns. Those corporations that qualify for any of these exceptions must submit the tax return on paper and use Form 480.2-2018 Corporate Income Tax Return– which includes the watermark “Requires Form 483.4”.
Following, we include a list of the exceptions for Electronic Filing:
- Foreign Corporation not engaged in any industry or business in Puerto Rico that only informs a sale of a real estate property in Puerto Rico.
- Foreign Corporation not engaged in any industry or business in Puerto Rico with income related to a business or industry in Puerto Rico (Annex U).
- Foreign Corporation not located in Puerto Rico and whose only source of income comes from its distributable participation of any flow through entity engaged in any business or industry in Puerto Rico.
- Corporation in the process of closing previous to the ending of its tax year.
- Corporation that files its Corporate Tax Return for a period of less than 12 months.
- Corporation with a 52-53 week tax year.
- Corporate Tax Returns that include Q an Q1 attachments: For Attachment Q-(Investment Funds-Credits for Investment, Losses and Dragged amounts) or Attachment Q1-(Investment Funds-Adjusted based determination, capital gains ordinary income and special contribution).
- Corporation that is not able to electronically submit neither the tax return or the automatic extension due to an error in the Employer’s Identification Number or due to a System Error: The taxpayer must make sure to include the error code in the space provided at Form 483.4. in addition, the taxpayer must include a copy of the error code message sent through the program. The TD will only accept the following error codes:
- Code number 222
- Code number 223
- Code number 4000
- Code number 4100
9. Corporation not obliged to be registered at the Merchant’s Registry as they are not operating in Puerto Rico.
The Corporate Tax Return may be filed in paper as follow:
- At the Treasury Department, 10 Paseo Covadonga, Intendente Ramírez Building, Old San Juan.
- At any Internal Revenue Collections Office located throughout the Island.
- At any of the Centers for the Orientation and Preparation of Tax Returns. This option will be available only until April 15, 2019. The TD will publish their locations shortly.
By Mail: Departamento de Hacienda, P.O. Box 9022501, San Juan, PR 00902-2501
Process for Electronic Filing of the Evidence required to be Included with the Corporate Tax Return
If the Electronic Filing Confirmation Message indicates that the taxpayer must submit additional evidence, he must access the Electronic Forms System (E-Forms System) in order to file the required evidence. The E-Forms System is available at the TD’s web page: www.hacienda.pr.gov, Corporate Tax Returns link. The evidence may be filed electronically through the E-Forms System by either the taxpayer or by an authorized specialist.
The E-Forms system will be available to the taxpayer or specialist that electronically files the required evidence with the corporation’s return until the day after the expiration date prescribed by the Code to file the return, including extensions or until the day after filing electronically the corporation return in those cases in which the taxpayer filed after the due date.
From this date on, the system will automatically file the evidence. If the documents were automatically filed by the E-Forms System, no document may be added, substituted or modified.
The taxpayer will receive a Confirmation Notice of Electronic Filing which includes a summary of the evidence filed, name of the downloaded file, documents received by type of evidence, and date and time when they were filed.
Authorization of Digital Signature of Tax Returns filed by Specialists
If the taxpayer uses the services of professionals that specialize in preparing and filing tax returns, the professional must obtain a written authorization from the taxpayer to digitally sign the corporate tax return on his behalf. The TD has issued form Model SC 2909 A—Authorization to Tax Return Specialists for the Electronic Filing and Signature of the Corporate Income Tax Return–.
Model SC 2909 A includes information on the Corporate Tax Return where the taxpayer certifies that he has examined the return and that the information provided is true, correct and complete.
Electronic Filing of Large Taxpayers Tax Return
Tax returns of corporations that qualify as Large Taxpayers and that have filed electronically will be in compliance with the filing requisites. Therefore, the taxpayer will not have to submit a copy of the tax return at the Large Taxpayers Unit.
Automatic Extension (Model SC 2644)
Taxpayers not able to file the Corporate Tax Return may request an extension for filing by filing Form Model SC 2644 ( Request for Extension). The request must be filed electronically.
Corporate Tax Return with Outstanding Balance for Payment
If there is any outstanding balance for payment, the taxpayer must make the payment no later than the date established by the Code. The payment may be made using the following methods:
Electronic Payment: At the moment of electronic filing of the tax return using a checking or savings account with sufficient funds.
In Person: At any Internal Revenue Collections Office, along with the Electronic Filing of the Corporate Tax Return Confirmation Notice. Payment may be made in cash, using a credit or debit card or with a check or money order in name of the Secretary of the Treasury.
Amended Tax Returns
Those taxpayers that need to amend their Original Corporate Tax Return must file the Amended Tax Return electronically, independent on whether the Original Corporate Tax Return was filed either electronically or in paper. The taxpayer must make sure to submit the same evidence included with the Original Corporate Tax Return and filed through the E-Forms System.