Puerto Rico issues withholding certificates for 2018

Section 1062.03 of the 2011 PR IRC establishes the general obligation of all persons, whether individuals or entities, that in the performance of a trade or business or income-producing activity in Puerto Rico makes payments to another person for services rendered, to deduct and withhold 7% from said payments for the income tax. The Secretary is authorized to grant partial and total relief from the 7% Withholding, subject to the terms and conditions established therein. For these purposes, the Department of the Treasury issues to the person receiving the payment a Certificate of Relief from Withholding at the Source on Payments from Services Rendered, if it is determined to qualify.

Informative Bulletin No. 18-01 was issued to report that: (i) Reliefs issued for 2017, whose expiration date was December 31, 2017, will continue in effect through Wednesday, January 31, 2018; and (ii) the process to send Automatic Relief for 2018 began during the last week of December 2017. Therefore, taxpayers should start to receive them in early January 2018. Taxpayers that meet the parameters established to receive Automatic Relief for 2018 and that urgently need it and cannot wait to receive their relief by mail may request a duplicate relief under one of the alternatives listed in this Informative Bulletin. (Internal Revenue Informative Bulletin No. 18-01, January 31, 2018.)
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