Puerto Rico - Guidance for taxpayers seeking relief from recent AMT regime changes, and from changes affecting related-party transactions 

July 23:  Puerto Rico’s Treasury Department issued guidance—Circular Letters 13-05, 13-06, and 13-07 (July 2013)—concerning the recently enacted alternative minimum tax (AMT) regime provisions that impose:
  • An “additional tax” on gross income of a corporation as part of the AMT regime
  • Limitations on deductions, for AMT purposes, for amounts paid to related parties
  • Limitations, for AMT purposes, with respect to amounts relating to property purchased from related parties

For background information, read TaxNewsFlash-United States (July 2, 2013)

Circular Letter 13-05 sets forth procedures for taxpayers to request a reduction in rate of “additional tax” on corporate gross income.

Circular Letter 2013-06 provides relief procedures for taxpayers to request relief from the limited deductions for amounts paid to related parties, and the associated AMT calculation.

Circular Letter 13-07 sets forth procedures for taxpayers to follow to request relief from the reduction for related-party purchases of property.

Read a July 2013 report [PDF 75 KB] about these guidance, as prepared by KPMG LLP.

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

Rolando Lopez


Carlos Molina


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