Puerto Rico has enacted legislation that creates a tax amnesty program that will be in effect from May 13, 2013 through June 30, 2013.1 The legislation, known as the Law for the Incentive Plan for the Payment of Tax Debts, provides for a full waiver of interest, surcharges and penalties on certain tax debts assessed, or to be assessed, as of December 31, 2012. Also, the legislation provides for the settlement of tax debts through payment plans.
Incentive Plan Overview
For income tax (Subtitle A), the incentive plan applies to outstanding debts (assessed or to be assessed) as of December 31, 2012 for tax years ended on or before December 31, 2011. Taxpayers that have not previously filed income tax returns may qualify for the incentive plan. However, they must pay the income tax debt in full without a payment plan. For purposes of estate and gift tax (Subtitle B), excise taxes (Subtitle C) and sales and use tax (Subtitle D), the incentive plan applies to outstanding debts (assessed or to be assessed) as of December 31, 2012. For withholding at the source of income tax debts (Subtitle A), the incentive plan applies to taxable periods ending on or before December 31, 2012.
The incentive plan also applies to unpaid taxes under certain special laws, including Act 7- 2009 (Special Act to Declare a State of Fiscal Emergency and to Establish a Comprehensive Fiscal Stabilization Plan to Salvage the Credit of Puerto Rico), Act 73- 2008 (Economic Incentives for the Development of Puerto Rico Act), Act 74-2010 (Puerto Rico Tourism Development Act of 2010), Act 83-2010 (Puerto Rico Green Energy Incentives Act), Act 27-2011...