The Puerto Rico Department of the Treasury (the Hacienda) recently issued Circular Letter No. 13-02, formally extending the deadlines for the adoption of amendments and the filing for determination letters with the Hacienda. This applies both to plans qualified only in Puerto Rico, as well as plans dual-qualified in both Puerto Rico and the United States.
The old deadline for adoption of amendments to the Puerto Rico Internal Revenue Code of 2011 was June 30, 2013, or the last day of the first plan year beginning on or after January 1, 2012, whichever is later. These dates are now extended to April 15, 2014, for employers with a calendar tax year, or 3½ months after the close of the employer’s non-calendar tax year commencing in 2013.
The deadline to file with the Hacienda for a determination letter has been similarly extended from September 30, 2013 (or the due date for filing the employer 2012 Puerto Rico income tax return with extensions) to April 15, 2014, for calendar tax year employers, or 3½ months after the close of the non-calendar tax year for the employer commencing in 2013.
This is welcome news as even prototype plan sponsors had been urging the Hacienda to grant additional time for the amendments and filing.
These deadlines can be further extended upon request.
While these extensions permit employers to move these plans back to the bottom of their to-do lists, employers are cautioned to allow enough time to make the changes and prepare the filings. The changes to the Puerto Rico tax code are quite extensive. In addition, the determination letter filing with the Hacienda requires more participant data and testing demonstrations than employers are typically required to provide with their U.S. filings.