Puerto Rico Treasury Issues Information Bulletin on Withholding Tax Payments for Services

The Puerto Rican Treasury March 15 issued a bulletin for withholding agents and service providers, clarifying withholding tax on payments for services. Topics covered include: 1) the requirement for individuals and entities engaged in business in Puerto Rico to withhold 10 percent of payments made for services rendered, as income tax; 2) for services exempt from withholding, the service provider should submit a CC RI 17-02 Affidavit to the withholding agent attesting that the payment isn’t subject to withholding, and the payee shouldn’t require a Release from the Treasury to document the exemption; 3) the payer of the services shouldn’t ...