For additional information, do not hesitate to contact our offices. Our address is:
Fiddler González & Rodríguez, P.S.C., P.O. Box 363507, San Juan, PR 00936-3507.
We welcome your questions and comments.
Myrna Y. Medina-Massanet
*Special Tax Counsel
On July 14, 2014, the Puerto Rico Treasury Department (“PRTD”) issued a Circular Letter (CL 14-04) informing a new electronic application named PICO (the Spanish acronym for the Merchant’s Integrated Portal), which will be used for sales and use tax (SUT) procedures, such as filing declarations and returns, and making payments.
As reported in our Act 80 Tax Watch, Act No. 80-2014 (Act 80) amended several sections of the Subtitle D of the 2011 Puerto Rico Internal Revenue Code, as amended, to establish, among other things, that effective August 1, 2014, every taxable item imported into Puerto Rico for resale will be subject to SUT payment.
As part of the changes introduced by Act 80, which are further discussed in our Act 80 Tax Watch, a new declaration and a new return were introduced to the SUT system, which are required to be submitted electronically through PICO. For instance, effective August 1, 2014, a new use tax declaration of imports must be filed electronically, as a requirement to obtain the release of the goods imported. In general, if the declared goods consist of taxable items, the SUT payment must be processed electronically before the release. As an exception, merchants who have posted a bond guaranteeing the payment of the SUT pursuant to the provisions of Circular Letter 14-03, generally can obtain a release of goods once they submit electronically the declaration of imported goods. This new use tax declaration of imports, along with the payment of the SUT is now required to be done through the PICO system.
• filing the Use Tax Declaration of Imports (Model SC 2970) in order to obtain authorization for the release of goods;
• filing the Monthly Use Tax Return (Model SC 2915D);
• filing the Monthly SUT Return (Model SC 2915A);
• making online payments related to said declarations and forms;
• accessing filing and payment records;
• filling and filing electronically the Application for Merchant’s Registration Certificate (Model SC 2914) and obtaining a Registry Number and Access Code (PIN);
• verifying the current Registry Number and Access Code; and
• answering the IVU Loto questionnaire.
PICO is an electronic application system that allows citizens and merchants to make transactions related to SUT with the use of the Internet. According to CL 14-04, the system shall be used for the following transactions:
The PICO system is available for merchant’s registry since July 18, 2014 at https://comerciantes.hacienda.pr.gov/. Once registered, merchants must add the information of every registered business they own to their user account. In order to do so, they must provide the Employer Identification Number, the Merchant Registry Number, and the Access Code (PIN) of the registered business. Additionally, every business that imports and declares goods as part of the process to release such goods must be registered in PICO by July 31, 2014.
The Tax Group at Fiddler González & Rodríguez, PSC, attorneys and counselors at law, will keep you posted of new developments. If you know anyone that would like to receive the FGR tax updates, please feel free to forward this newsletter or reply to this email in order to be added as recipient. Stay tuned for further updates of FGR TAX WATCH.
***IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any United States federal tax advice in this communication (including any attachments) is not intended or written by Fiddler González & Rodríguez, P.S.C. to be used, and cannot be used, for the purpose of (i) avoiding any penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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**©2014 Fiddler, González & Rodríguez, P.S.C. This Watch has been prepared by Fiddler, González & Rodríguez, P.S.C. for informational purposes only and does not constitute legal advice. This information does not create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this without seeking advice from professional advisers. Fiddler, González & Rodríguez, P.S.C. and its members assume no responsibility to inform you of additional changes in law or any other legal issues related to the matters advised in this e-mail.