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SURI Implementation

posted Nov 8, 2016, 8:24 AM by Isla CPA   [ updated Nov 8, 2016, 8:25 AM ]

The Puerto Rico Treasury Department is currently implementing the Unified Internal Revenue System (“SURI” by its Spanish acronym), which is an electronic platform meant to streamline tax administration by integrating and replace most of the currently used platforms.

The following steps with corresponding dates for SURI’s implementation were announced:

• Phase 1: Sales and Use Tax, (operational by October 31, 2016)
• Phase 2: Integration of corporate and other business-related taxes (operational by December 2017)
• Phase 3: Integration of individuals, withholding and Gift & Estate Taxes (operational by December 2018).

Beginning October 15, 2016, all existing merchants must update their Merchant’s Registration Certificate via SURI.


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Disclaimer

The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

VAT Update

posted Apr 30, 2016, 9:54 AM by Isla CPA   [ updated Apr 30, 2016, 9:54 AM ]

The Puerto Rico Secretary of Treasury has issued Administrative Determination 16-07 providing procedures for a transition from Sales Tax to Value Added Tax effective June 1, 2016. A very brief summary follows:

  • The VAT rate is 10.5%;
  • A "Certificate of Small Business" will be available for businesses with gross income volume of less than $125,000;
  • The "Reseller Certificates" remain valid for the 1% Municipal Sales Tax exemption;
  • The "Certificate for Exempt Purchases and Services Subject to the 4% Special-SUT" (Form 2916) remains temporarily in effect until further notice and will serve as a certificate of exempt purchases for VAT purposes.
  • Eligible Reseller Certificates" expire June 30, 2016 regardless of their expiration date.  After June 30, 2016 these merchants will be fully subject to VAT.
  •  A new web based portal (SURI) would be available for all tax filings and the first filing is July 20th, 2016;
  • The filing of returns for merchants with pre-existing contracts will continue under PICO until June 30, 2016.  The SUT paid on the pre-existing contract will not be creditable against the VAT;

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Disclaimer

The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Amendments to Tax Incentives Laws and Rules - Act No. 187-2015

posted Jan 12, 2016, 4:54 AM by Isla CPA   [ updated Jan 12, 2016, 4:54 AM ]

On November 17, 2015 Act No. 187- 2015 was enacted to establish a new integrated electronic data center for validation and fiscalization of business activities that are promoted under special laws and enjoy tax benefits.

Act No. 187 launches the issuance of an annual Certificate of Compliance for decree grantees, by the Director of OITE. This Certificate is intended to attest to the fact that the grantee is in full compliance of its obligations under its grant. The Certificate of Compliance must be included with the tax returns in which benefits under the grant are being claimed and eventually will be posted in the integrated electronic data center when such system is operational.

Without the Certificate of Compliance, the taxing authorities are not obligated to recognize or apply the benefits under the grant. The taxing authorities, including municipalities, must rely on the Certificate of Compliance, but such authorities may request clarifications or additional information if they have any doubt or concern about compliance by the grantee.

Another notable change to the current rules for corporations applying for Act 20 benefits is the requirement for at least five (5) employees to be generated at the time the decree is granted.

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Disclaimer

The information on this website is general information and is for educational use only 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.

IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Accounting Bookkeeper / Analyst

posted Oct 11, 2015, 3:54 PM by Isla CPA   [ updated Oct 11, 2015, 3:54 PM ]

Objectives & Responsibilities - Maintain accurate financial records and help prepare and analyze accounts for all types of businesses. Will be required to provide administrative and clerical support to CPA accountants. The position holder will be required to work flexibly, in a rapidly developing office environment. It may be necessary to assist other staff from time to time.The key duties of the position are as follows:

  • General book-keeping duties to include:
  • Double entry book-keeping;
  • Processing sales invoices;
  • Receipts and payments;
  • Bank Account Reconciliations;
  • Completing IVU returns;
  • Preparing wage and withholding from source monthly deposits;
  • Helping prepare P&L statements and balance sheets;
  • Quarterly Payroll Returns and others;
  • Communicate and liaise verbally and in writing between clients/visitors/enquirers and staff and interpret and respond clearly and effectively to spoken requests over the phone or in person, and to verbal or written instructions.
  • Manage, organize and update relevant data using database applications.
  • Establish and maintain effective working relationships with co-workers, supervisors and the general public.
  • Maintain regular consistent and professional attendance, punctuality, personal appearance and adherence to relevant health and safety procedures.
  • Adhere to procedures relating to the proper use and care of equipment and materials for which the role has responsibility.
  • Able to work under minimal supervision.
  • Plus other duties consistent with the position-level as directed.

Because of the changing nature of our business your job description will inevitably change. You will, from time to time, be required to undertake other activities of a similar nature that fall within your capabilities as directed by management.

Required experience:

  • Microsoft Excel: 2 years

Required education:

  • Bachelor's

Required language:

  • English and Spanish
For more information, please send a Resume and Cover Letter to careers@islacpa.com 

Tax Update - Sales Tax on Services Rendered by Non-residents

posted Sep 16, 2015, 3:54 PM by Isla CPA   [ updated Oct 11, 2015, 3:34 PM ]

Services Rendered by a Non-Resident Person to a Person in Puerto Rico

Act 72 of 2015 amended the PR Internal Revenue Code (the “Code”) to establish that in the case of services rendered by a non-resident person to a person located in Puerto Rico, the person responsible for remitting the applicable sales and use tax on such services to Treasury is the person who receives the service in Puerto Rico. This provision comes in effect on October 1, 2015.

The applicable SUT rate will depend on the type of service received - taxable services subject to the 10.5% Commonwealth SUT or designated professionals services or services rendered to other merchants subject to the 4% Special SUT.

Municipal SUT rate will not apply since the service is rendered outside of Puerto Rico.

The corresponding SUT will apply to services provided by non-resident persons that are received by persons located in Puerto Rico, only in connection, either directly or indirectly, with operations or activities carried out in Puerto Rico. 



Disclaimer

The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Tax Update - Act 107 - Condo Associations Exempt from Sales and Value Added Tax

posted Jul 31, 2015, 2:54 PM by Isla CPA   [ updated Jul 31, 2015, 2:54 PM ]

The most recent amendment to the Puerto Rico revenue code (Act 1 from 2011) was enacted on July 2, 2015. Act 107 effectively exempts providers of services to Condo Owner's Association in Puerto Rico from the responsibility to collect Sales and Value Added Tax.

The law also relieved Owner's Associations from the 4% "business to business" tax on professional services previously contemplated in Act 72 from May 29, 2015.

This is a welcomed relieve for all Owner's associations which were facing an inevitable 10-15% increase of all monthly maintenance fees billed to unit owners starting October 1, 2015 in order to be able to balance their operating budgets, if these taxes were to go into effect. 


Disclaimer

The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Tax Update - Sales and Use Tax (IVU) - Ley 72 de 29 de mayo de 2015

posted Jun 3, 2015, 11:54 AM by Isla CPA   [ updated Jun 3, 2015, 11:55 AM ]

Last Friday, a new law was enacted. Below are the main points related to the Sales and Use Tax (IVU). Please do not hesitate to contact us with questions.

 - As of July 1st, 2015, transactions currently subject to the 7% IVU will be subject to a 11.5% Commonwealth (10.5%) and municipal (1%) IVU. This will be in effect until March 31, 2016.

 - Effective for periods commencing after June 30, 2015, merchants with a Re-seller Certificate may claim 100% credits for IVU paid on their inventory against IVU collected on their sales. The 75% limitation currently in place is eliminated.

 - Starting October 1st, 2015 and until March 31st, 2016:

      1. Business to business services that are currently taxable will be subject to an 11.5% IVU.
      2. Business to business services and designated professional services (e.g., certified accountants, lawyers, engineers) that were previously exempt from IVU will be subject to a Commonwealth IVU of 4%. No municipal IVU will apply to services subject to the 4%.

- In the case of services rendered by a non-resident, the recipient in Puerto Rico of the service will be the party responsible for remitting the IVU to the Treasury Department.

- Transactions occurring after March 31, 2016, will be subject to a new VAT (IVA) of 10.5% plus a 1% municipal IVU.


Disclaimer


The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Business Entity Registration in Puerto Rico

posted Mar 31, 2015, 1:54 PM by Isla CPA   [ updated Mar 31, 2015, 1:54 PM ]

All Puerto Rico business operations should register with the required agencies. Certificates and registrations should be requested before the corporate commences operations on the island oftentimes probationary registrations are able to be promptly issued.  This list of agencies includes but isn't restricted to: Treasury Department, Municipal Revenue Collection & the Municipality,  Department of State, State Insurance, and also the Department of Labor & Human Resources. For Sales & Use Tax registration, a business should present a Merchant Registration Certificate.  One of the most significant changes that Puerto Rico is contemplating involves the replacement of the SUT with a VAT, effective January 1, 2016. We will post extensively when this proposed change is finalized.  Presently the Bill establishes that for the remainder of 2015 the provisions pertaining to sales and use tax will continue as per the Puerto Rico Internal Revenue Code of 2011

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

***

Disclaimer

The information on this website is general information and is for educational use only 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.


IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Expatriate Tax Information

posted Feb 28, 2015, 2:54 AM by Isla CPA   [ updated Feb 28, 2015, 2:54 AM ]

Expatriates who live in Puerto Rico are subject to Puerto Rico taxation.  This includes US citizens who live in Puerto Rico for at least 183 days per year.  For non-us expatriates there are comprehensive tax and employment visa requirements.  Personal tax returns are due the first April 15 following the end of the tax year.  Extensions are available.

The following must file a Puerto Rico income tax return:
• Individuals (Puerto Rico residents), who had gross income over $5,000; 
• Individuals (non-resident of Puerto Rico, citizen of the United States) who had a gross income over $5,000 provided that the taxes have been paid at source
• Individuals (non-resident aliens) who had a gross income from sources within Puerto Rico. 

There are more rules and this post contains simplifications and is not comprehensive and my be forward looking. 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 only 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.

 

IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

Individual Retirement Accounts Modification in 2014

posted Jan 17, 2015, 2:54 AM by Isla CPA   [ updated Jan 17, 2015, 2:54 AM ]

In 2014 Puerto Rico made adjustments to certain aspect of individual retirement accounts (“IRA”).   The adjustment included the ability to elect to prepay
at a reduced income tax rate of 8% all or part of their accrued and undistributed balances in IRAs (this does not include the ability to prepay for 2014 interest).
A penalty for early withdrawal of 30% (formerly a 10% penalty) - will apply to any distribution from an IRA of prepaid amounts if the holder of the IRA or its beneficiary has not attained age 60.  Under the act, there is no penalty will apply to a distribution made from an IRA to prepay the 8%.  Interest paid or accrued after June 30, 2014 will be subject to the 17% income tax rate.

There are more rules and this post contains simplifications and is not comprehensive and my be forward looking. 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 only 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.

 

IRS CIRCULAR 230 DISCLOSURE:

To comply with requirements imposed by the Department of the Treasury, Isla CPA informs you that any U.S. tax advice contained in this post (including any attachments) is not intended or written by the practitioner to be used, and that it cannot be used by any  taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

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