Puerto Rico Available Tender

The Secretary of the Department of the Treasury Francisco Pares Alicea urged all individuals and corporations dedicated to the provision of services on their own to evaluate the Optional Contribution as an alternative to The filing of the Income Tax Return for the year 2019. This is one of the main changes approved in the Tax Reform of 2018 and an alternative that could facilitate compliance with tax obligations in a simpler way said the secretary. The Optional Tax is a contribution on gross income without deductions and without personal or dependent exemptions which is paid at the taxpayers option at a preferential rate that fluctuates between 6 and 20 depending on the total gross income generated during the taxable year.Any taxpayer dedicated to the provision of services including self-employed individuals corporations and conduit entities may opt for the Optional Tax and fulfill their tax liability at a tax rate much lower than the regular income tax rate. In the case of individuals the maximum income tax rate is 33 and in the case of corporations it is 37.5. The Optional Contribution can be as low as 6. The maximum Optional Tax rate applicable to those taxpayers whose gross income exceeds 500000 will be 20 explained Pares Alicea.The official added that there are about 173000 taxpayers who are self-employed in the country and of these 90 generate less than 100000 of gross income per year so the majority would be taxed under the Optional 6 Tax. To opt for it the income must be substantially from the provision of services. That accrued income must represent at least 80 of the total gross income received during the taxable year in addition these taxpayers should not have a balance of contribution pending payment once the term established by the Code for payment has expired of the amount determined as a contribution by the taxpayer he said.For the 2019 Return any individual who is eligible to opt for the Optional Tax and who wishes to benefit from it must ensure that the total tax determined under this option is paid to the Department no later than January 31 2020 deadline established by the Internal Revenue Circular Letter 20-02 to send the last estimated payment term of the 2019 taxable year.I invite all individuals who are self-employed to analyze their income generated for the 2019 tax year and compare the Optional Tax on gross income with the regular contribution that would result from the return considering the deductions. If you understand that the Optional Tax is a better option proceed to make the payment of any balance not covered by withholdings or estimated payments made during the year 2019 not later than January 31 2020 so that you can benefit from this option since to qualify for the Optional Tax on the Return of the year 2019 there can be no balance to be paid with the filing of said return he concluded.