The Puerto Rico Treasury Department (PRTD) just issued the Administrative Determination Letter # 09-06 (AD 09-06) dated September 3, 2009, to informed all  registered merchant, who resale tangible personal property and enjoy from theexemption certificate for such purposes, the process to renew the certificate and also, to allow additional days to the already printed due date that appeared in the front of the form. Originally, the law who introduced the Sales and Use Tax in 2006 established that all the exemption certificates will due three years after their issuance date. After that, the registered merchant who will want to enjoy of such exemption again, will be need to renew it. In order to obtain a new certification, and since the Act 7 and subsequently, the amendments to such act, Act 37, introduced additional requirements to be able to renew and enjoy from the exemption. Under that new requirements the PRTD decide to established a predetermined form and time to do so:

• Due Date—the exemption certificates with due date on or before October 30, 2009, will be valid until October 31,
  2009. The rest of the exemption certificates with due date after October 30, 2009, will due the last day of the due month. For example, if the exemp- tion certificate indicate that the due date will be December 15, 2009, the certificate will be valid until December 31, 2009.
  
  
• Renewal Process—the process will be segregate between merchants with volume of business (VOB) of $500,000 or more; and such with less than $500,000.

In the case of merchants with VOB of $500,000 or more, and that will be in fully compliance with all their tax responsibility, the exemption certificate will be receive it automatically. If the merchants owed money to the PRTD, will receive a tax notice let them know the amount due. In order to be able to renew the exemption certificate the merchant will need to paid the full amount of the debt before request it.

In the other hand, all the merchant with VOB less tan $500,000, will need to comply the Form SC 2914 D—”Request for the Exemption Certificate” (for now available only in Spanish), accompany copy of the last Volume of Business Declaration filed in all the municipalities in which the merchant did business and needs to be in fully comply of their tax responsibility with the PRTD.

However, it’s important that keep in mind that the PRTD will have the authority to require any additional information that consider necessary in order to guarantee or sustained the reasonability of the issuing of the exemption certificate.

DUE DATE TO REQUIRE THE NEW EXEMPTIONS FOR THE TEMPORARY ADDITIONAL REAL PROPERTY TAX

The new additional real property tax, implemented by Act # 7 of March 9, 2009, and subsequently amended by Act # 37 of July 10, 2009, will be imposed for the fiscal years 2009-2010, 2010 - 2011 and 2011 - 2012, or until the government collects $ 690 million, whichever comes first. This new tax apply to all real properties, residential and commercial, and the tax value will be determined using the already assessed valued determine by the Municipal Revenue Collection Center, better known as CRIM.

The tax rate will be. 0591 % and the tax shall be payable in two equal installments: September 1, and March 1. However, for the first installment, payable on September 1, 2009, the Puerto Rico Treasury Department (PRTD) extended the term of payment until November 30, 2009. Same as with the CRIM, the taxpayer you will have the option to receive a 10 % discount if the payment is made within 30 days of the invoice due date and a 5 % discount after 30 days but not exceeding 60 days. All the exonerations and exemptions granted by the CRIM shall apply for the new tax, except those granted by the municipalities in the exercise of its powers. In addition, the Act # 7 included new additional exemptions, which must be requested by the owner of the real property to the PRTD in order to take effect. For that reason, the PRTD issued the Circular Letter 09-07 (CL 09-07), in which detailed the requirements to grant the exemptions and established for these purposes the Form SC 3420-"Request for exonerations and exemptions from the real property tax ". Below the listing of the new exonerations and additional exemptions, that requests the filling of the above-mentioned form:

A. Residential real properties owned and live by taxpayers whose only income comes from pension or annuities and do not exceed from $ 20,000.

B. Real properties owned by a person who was lay off from his job due to the Act 7.

C. New housing units that were not optioned, or sold and delivered.

D. Real properties operated under programs paid with federal funds to provide rental housing to families of low or moderate income (Plan 8). 

E. Real properties whose construction has been made to be the house of a disable person.

F. Real properties constituting a second floor.

It is important to mention that all the taxpayers to which the above exonerations and exemption will apply, shall be file the Form SC 3420 as soon the exemption is available for the first time as follows:

Additional information will be required to sustain that the properties meets the establish requirements. For more information, please access, www.hacienda.gobierno.pr/downloads/pdf/ cartas/CC09-07.