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TaxBites 2019-06

San Juan Municipal Sales Tax Amnesty

The Municipality of San Juan has authorized an amnesty period for the payment of the Municipal Sales and Use Tax (“Municipal SUT”). All taxpayers, both natural and legal persons, that have Municipal SUT debts with the municipality are eligible as are taxpayers that voluntarily disclose any unpaid amounts during the amnesty period. The amnesty period runs from May 1, 2019 to September 30, 2019. Only unpaid amounts for periods prior to January 1, 2019 are eligible for the amnesty benefits.

Any taxpayer interested in obtaining the benefits of the amnesty must file an application before the municipality’s Finance Office accompanied by a filing fee equal to 5% of the total debt. Nevertheless, the filing fee will never be less than $100 or more than $1,500. In addition, the taxpayer may not have outstanding debts of the Municipal License Tax (Patente), or, they must be part of a payment plan in which the taxpayer is complying with all its terms and conditions.

The taxpayer has 2 options to pay the Municipal SUT under the amnesty:

  1. One payment equal to the principal owed. Under this option, 100% of all interest, penalties and additions will be waived.
  2. Payment Plan. Under this option, the taxpayer must pay 110% of the principal owed. Likewise, all interest, penalties and additions will be waived. An upfront payment of at least 20% of the debt will be required. The maximum term of the payment plan will be 12 months.

If a taxpayer does not agree with a Municipal SUT debt levied but still would like to take advantage of the amnesty if the debt is confirmed, it must submit the application with any evidence supporting its claims. If the Municipality has already started a collections process in curt, the taxpayer may still apply for the amnesty. However, in this case, there will be an additional fee of 10% of the debt (which would bring the total filing fee to 15%).

About the Author

Carrion Sanchez LLC
Carrion Sanchez LLC

Carrión Sánchez, LLC is a highly dynamic legal firm specialized in tax and corporate matters for high-net-worth individuals and businesses within and without Puerto Rico. Contact Us at [email protected]

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