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TaxBites 2019-07

Additional Extension to Request Benefits for the Retention of Employees After Hurricanes Irma and María.

The Puerto Rico Treasury Department (“PRTD”) notified an additional extension for employers to request the benefit for the retention of employees after the hurricanes. This benefit allows employers to receive an instant credit of up to 32% of salaries (up to $6,000 of salary per employee) paid after the hurricanes but before substantial operations resumed on the employer facilities.

The new due date for requesting the benefits is July 30, 2019. Also, the new due date to file a Benefit Claim[1] will be July 10, 2019. In order to fail the Claim, the Benefit should have been requested no later than June 30, 2019.

Back to School Sales and Use Tax Holidays – Fiscal Year 2019-2020

The PRTD announced the Sales and Use Tax (“SUT”) Holiday dates for Fiscal year 2019-20. They are as follows:

  • The first period will begin at 12:00 a.m. on Friday, July 12, 2019 and will conclude at 11:59 p.m. on Saturday, July 13, 2019.
  • The second period will begin at 12:00 a.m. on Friday, January 3, 2020 and will conclude at 11:59 p.m. on Saturday, January 4, 2020.

As with every year, during the SUT Holiday school uniforms and supplies may be acquired SUT-free. “School uniform” are defined as those clothing items that are specifically required by an educational institution to be used by its students and may not have a general or continued use outside of the school to substitute ordinary clothes.  Likewise, it includes those pieces of clothing and shoes that complete one or more pieces of the uniform, as specifically required by the educational institution. 

“School supplies” includes art school supplies, music school supplies, educational school supplies bought at retail, and storage media, including disc, CDs and flash drive.

Thanks to a recent amendment, for the first time, both physical and electronic books may be purchased during this period SUT-free. Previously, only physical books could be purchased SUT-free. Finally, notebooks, of every size, may also be purchased SUT-free during this period.

[1] For those employers which benefit application was denied.

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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