Income Tax Return

Every corporation (including a branch) engaged in  business in Puerto Rico or with effectively connected income is required to file a corporation income tax return on or before the fifteenth day of the fourth month following the close of its taxable year.  The return should be  filed with:

(For payment due) Bureau of Income Tax P.O. Box 902250 San Juan, Puerto Rico 00902-2501

(For refund due) Bureau of Income Tax P.O. Box 50072 San Juan, Puerto Rico 00902-6272

The maximum marginal tax rate applicable to corporations engaged in business in Puerto Rico, or with effectively connected income is 39% .  Dividend distributions on the net earnings are generally subject to 10% withholding when distributed to a non-resident shareholder.

An extension of time for filing the return may be obtained if  requested on or before the due date for filing the return.  Such extension will not be granted for more than 90 days.  Any tax due must be paid in full together with the request for extension.

A business  operating in Puerto Rico may also be required to file an estimated tax declaration and to make the estimated tax payments.  The estimated tax declaration is generally due on or before the 15th day of the fourth month of the  taxable year.  An extention, up to 90 days, may also be obtained.  Payments of estimated tax are generally due on the 15th day of the fourth, sixth, ninth and twelfth month of the taxable year and penalties are imposed for underpayment of the estimated tax.

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