The Governor of Puerto Rico, on June 14, signed House Bill No. 2468 into law as Act No. 57-2020 (Act 57), which provides additional economic and tax relief measures to address the effects of the COVID-19 pandemic.
Act 57 postpones the filing and tax payment due date for certain 2019 PR income tax returns, temporarily exempts designated professional services and business-to-business (B2B) services from sales and use tax (SUT) and suspends the 2019 tax year corporate minimum tax. Act 57 allows certain entities to carry back tax year 2020 net operating losses (NOLs) and suspends the requirement to file an agreed-upon procedure report with the PR income tax return for tax year 2019. Act 57 recognizes automatic compliance for certain employment, sales, or investment requirements for taxpayers that hold tax decrees under the PR tax incentives laws. Act 57 also grants automatic extensions to renew bonds and licenses with the Puerto Rico Treasury Department (PRTD) and exempts certain COVID-19-related subsidies and cancellation of debt income from taxation.
