Puerto Rico - Tax amnesty for real property, personal property tax liability 

January 22:  New law enacted by the Commonwealth of Puerto Rico as “Act No. 145” (9 December 2013) authorized the Municipal Revenue Collection Center (MRCC) to implement a tax amnesty program to help taxpayers to come into compliance with respect to delinquent real property and / or personal property taxes. The MRCC issued guidance (Administrative Order 2013-06 (December 12, 2013)) to implement the tax amnesty program.

The amnesty program will be in place for 100 days (from December 18, 2013, to March 27, 2014) and will be available for individual and corporate taxpayers with delinquent real or personal property taxes.


To qualify for the amnesty program, taxpayers must be current with regards to their real property taxes for the tax year 2013-2014 and thereafter; tax debts from prior years qualify for the program. Taxpayers with any unfiled personal property tax returns may file such returns and will be required to pay the corresponding tax in full. However, accumulated interest, surcharges, and penalties will be waived as part of the program.


The amnesty program provides the following relief measures:


  • Amnesty - Accumulated and applicable interest, surcharges, and penalties will be waived if the principal payment of the tax liability is made in full.


  • Amnesty installment plan - If the taxpayer does not pay the tax liability in full, applicable interest, surcharges, and penalties will be waived only if there is an agreement for an installment payment plan with the MRCC. Installment payment plans available are:

    • A one-year installment plan, requiring a down payment of 10% of the total tax liability with the remaining principal paid within a 12-month period.
    • A two-year installment plan, requiring a down payment of 10% and the remaining principal paid within 24 months, subject to 5% annual interest charge.
    • A three-year installment plan, requiring a down payment of 10% and the remaining principal paid within 36 months, subject to a 7% annual interest charge.
    • A four-year installment plan, requiring a down payment of 10% and the remaining principal paid within 48 months, subject to a 10% annual interest charge.

Taxpayers that have an existing installment plan with the MRCC prior to the commencement of the amnesty period may renegotiate the balance due to take advantage of the program. Any taxpayer convicted of, or under a criminal investigation for, fraud, organized crime, or any crime of a tax nature will not be eligible to participate in this tax amnesty program.


Finally, as part of the program, the MRCC will eliminate from its database personal property tax debts for which no collection efforts have been made for the last 10 years from the filing of the return. Existing real property tax debts for which no collection efforts have been made for the last 15 years, from the date the taxpayer was initially notified of the tax, will also be erased.



For more information, contact a tax professional with KPMG in Puerto Rico:


Rolando Lopez

(787) 622-5340


Carlos Molina

(787) 622-5311




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