Quick Q & A

We receive the following question quite often and  below is the answer:

Q: Cual es la diferencia a la hora de rendir, tener un formulario 480.6A en vez del 480.6B?

A: En términos generales: 

El formulario 480.6B es la "Declaración Informativa - Ingresos Sujetos a Retención". El formulario contiene el campo "Cantidad Retenida". El contribuyente que recibe pagos debe someter una copia de la 480.6B (el triplicado) al rendir su planilla de contribución sobre ingresos.

El formulario 480.6A es una "Declaración Informativa - Ingresos no Sujetos a Retención"

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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

Reminder: Taxation of Internet Sales

On June 30, 2013 - Act 42-2013 clarified rules on Sales and Use Tax in regard to the internet.  It defines the term "Merchant" to better address internet and remote sales.  There are additional regulations associated with this amended definition.

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

Income Tax Workshop for Individuals and Corporations

Our weekend was as productive as any day during the week. We participated in the "Income Tax Workshop for Individuals and Corporations" organized by the San Juan Chapter of the Puerto Rico Society of CPA. 

We had a great overview of the income tax filing provisions applicable for 2013 for corporations and individuals. Also participated in the discussion related to the changes brought by Acts 40 and 117, including the alternative minimum tax calculation changes. 

"Sources of income" rules was another important topic discussed.

Wine and cheese at the end was an added benefit at the end after a weekend spent working.

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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

Moratorium of Tax Credits

In 2013 Puerto Rico passed the law House Bill 1073, “Law for the Redistribution and Tax Burden Adjustment.” This legislation was part of an effort by Puerto Rico to increase government revenues.  The Act reestablished a moratorium of tax credits.  This moratorium is for taxable years that began in 2013 and end before 2016.  The rules of legislation do allow for certain circumstances where credits acquired before June 30, 2013 can be used, but there are limitations and actions were required to have been taken in 2013 to preserve eligibility.

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

2013 W-2 forms

W-2 forms are out and being distributed to all our clients' employees. It was a busy week but we met the deadline a day in advance. We are already working on the 480's submissions.

2013 in Review: Modifications to Puerto Rico Alternative Minimum Tax for Corporations

The Alternative Minimum Tax (AMT) calculation was modified to account for a tentative minimum tax calculation that includes - 30% tentative minimum tax on alternative minimum net income; or the value from the sum of:

• Payments for related party non-PR services -- 20% tentative minimum tax. (This can include services from a home office to its Puerto Rico local office)
• Personal property acquisitions and purchases from corporate related parties -- 2% tentative minimum tax
• Special Gross Income Tax - special tax ranging from 0.20% to 0.85% depending on the level of the gross income

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.

2013 in Review, New Puerto Rico Taxable Services

In 2013 certain cervices became taxable that were previously not taxed. These services include, but are not limited to:

• Banking Account Management Charges/Fees to Commercial Clients
• Car Rentals – Daily Rentals
• Cleaning – Laundry Services
• Cleaning -- Maid Services
• Repair and Maintenance Services – Real Property and Tangible Property
• Security and Protective Services
• Waste Collection Services

There are more rules and this post contains simplifications and is not comprehensive. Additionally, as always, a professional should be consulted and be presented with specific information.


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Disclaimer
The information on this website is general information and is for educational use and has not been verified for accuracy nor completeness. You, the reader, should further research your specific individual situation. In addition you should contact your accounting professional for professional advice derived from specific details from your structure and financial position.