- 3 -
|
Instructions Form 480.6C
Informative Return – Payments to Nonresidents or for Services from Sources Outside of Puerto Rico
General Instructions for the Payer
This form must be prepared by every person engaged in trade or business in Puerto Rico that made payments to nonresident aliens or trusts or to foreign corporations or partnerships
not engaged in trade or business in Puerto Rico to whom a withholding of tax at source with respect to payments made during the year was made, as established by the Puerto Rico
Internal Revenue Code of 2011, as amended (Code), or by Administrative Determination No. 17-28 of November 10, 2017 (AD 17-28), regarding service contracts related to the
recovery process of Puerto Rico after the passing of hurricanes Irma and María (in those cases in which the Option was exercised). This form must also be prepared to report payments
made to nonresidents for services from sources outside of Puerto Rico that were not subject to withholding. In the Amount Paid column the gross income paid should be included for
each one of the categories included in this Informative Return. Likewise, in the Amount Withheld column the withholding made should be included as provided by the corresponding
section of the Code or by AD 17-28.
The preparation of Form 480.6C will be required to report all payments made during the year to persons nonresidents of Puerto Rico, whether or not they were subject to withholding
at source. In the Identification Number box of the Payee’s Information part, you must indicate the social security or employer identification number. If the person does not have a social
security number, indicate the passport or visa number or any other identification number from current and valid documents that prove his/her alien status and that include the date of birth,
name and photo. Also, check the space identified as Alien provided in this box.
The form must be prepared on a calendar year basis and must be filed electronically with the Department of the Treasury no later than April 15 of the year following the calendar year
in which the payments were made. This Form must be provided to the person to which the payment was made within the next 7 calendar days, counted from the deadline established
by the Code for filing with the Department. The Code imposes penalties for not reporting the income on Form 480.6C or for not filing such return.
Specific Instructions for the Payer
Special Contribution for Professional and Advisory Services under Act 48-2013 - Include in this box the amount withheld as Special Contribution under Act 48-2013, as
amended. This amount is equivalent to one point five percent (1.5%) of the total amount of every professional or advisory services contract signed with an agency, dependency or
instrumentality of the Government of Puerto Rico, public corporation, the Legislative Assembly and the Judicial Branch. This item is part of the total reflected in the Amount Paid column
in box 2. Every contract that is in force as of April 1, 2020 onwards, will not be subject to this special contribution on professional, advisory, advertising, training or orientation services
provided by individuals whose aggregate amount of contract does not exceed $300,000 annually.
This box will only be used by agencies, dependencies or instrumentalities of the Government of Puerto Rico, public corporation, as well as the Legislative Branch, the Office of the
Comptroller, the Office of the Citizen's Ombudsman and the Judicial Branch.
For additional information on the scope of this withholding, you may refer to Administrative Determination No.13-14 of August 28, 2013 and to the Central Accounting Circular Letters
issued by the Department regarding this matter.
Box 1 – Salaries, Wages and Compensations: Include in this box the amount paid and withheld of compensation for salaries or wages to a nonresident alien individual for services
rendered in Puerto Rico as an employee. In these cases there is an employer-employee relationship, therefore, the income does not constitute professional services.
Box 2 – Payments for Services Rendered by Independent Contractors: Include in this box all payments made for professional services rendered in Puerto Rico by independent
contractors nonresidents of Puerto Rico that were subject to withholding at source, as provided by Section 1062.08 of the Code. Also include payments for services rendered to any
agency, dependency or instrumentality of the Government of Puerto Rico, public corporation, as well as the Legislative Assembly, the Judicial Branch and Municipalities or any other
entity, created by state or federal law, whose funds come, totally or partially, from the General Fund, even when the service is provided outside of Puerto Rico, as provided by Section
1035.01(a)(3)(A) of the Code.
Box 3 – Compensation Paid by International Associations or Federations of Sport’s Teams: Include in this box the total amount paid to a nonresident individual for
compensation received for personal services rendered in Puerto Rico as an employee or independent contractor from any member team of international associations or federations or
associations or entities affiliated to those teams. That is, the payments made to players, managers and technical personnel member of these associations or federations must be included.
You must include the corresponding withholding, as provided by Section 1023.07 of the Code.
Box 4 – Sale of Property: Include in this box the gross income paid to a nonresident person in the sale of any personal o real property located in Puerto Rico. You must include the
withholding applicable to the payee considering the applicable rules provided by Sections 1062.08 and 1062.11 of the Code.
Box 5 – Dividends Subject to 10% under Section 1062.11: Include in this box all eligible distribution made to a foreign corporation or partnership not engaged in trade or business
in Puerto Rico, including the applicable distributions made by those partnerships that elected to continue paying taxes as regular corporations under Section 1010.01(a)(4)(A) of the
Code. You must follow the withholding rules provided by Section 1062.11(a)(2)(A) of the Code.
Box 6 – Dividends Subject to 15% under Section 1062.08: Include in this box all eligible distribution made to a nonresident individual by a domestic or foreign corporation, which
income from sources within Puerto Rico is at least 80% of the gross income derived during the 3 years prior to the date in which the dividend was declared. You must also include
in this box the applicable distributions made by those partnerships that elected to continue paying taxes as regular corporations under Section 1010.01(a)(4)(A) of the Code. Also, the
applicable withholding provided by Section 1062.08(a)(2) of the Code must be included.
Box 7 – Dividends Subject to Preferential Rate under Special Act: Include in this box any dividend distribution made under the provisions of any special legislation that provides
for a preferential rate other than the one provided by Section 1023.06 of the Code. You must include the applicable preferential rate in the space provided.
Box 8 – Royalties: Include in this box the total payment made to a nonresident person in exchange for the use of an intangible in Puerto Rico. Do not include in this box royalty payments
under incentives acts, since such payments must be included in box 9. You must include the applicable withholding provided by Sections 1062.08 and 1062.11 of the Code.
Box 9 – Royalties Subject to Special Rate under Incentives Acts: Include in this box the total amount paid to a nonresident person in exchange for the use of an intangible in Puerto
Rico when the same is made under the provisions of any incentives act in force at the moment the payment is made. You must include the applicable withholding at source as provided
by the incentives act under which the payment was made.
Box 10 – Interest: Include in this box the total amount of interests paid or credited to persons nonresidents of Puerto Rico from deposits in interest bearing accounts, in cooperatives,
savings associations authorized by the Federal Government or the Government of Puerto Rico, commercial or mutual banks or in any other banking organization established in Puerto
Rico. Also, the applicable withholding provided by Sections 1062.08 and 1062.11 of the Code must be included.
Box 11 – Rents: Include in this box the gross income paid to nonresident persons related to the leasing of personal or real property located in Puerto Rico. You must include the applicable
withholding provided by Sections 1062.08 and 1062.11 of the Code.
Box 12 – Public Shows: Include the amount of income paid to a nonresident person in the conduct of any form of public show, performance or exhibition. You must make the withholding
at source provided by Sections 1062.08 and 1062.11 of the Code.
Box 13 – Others Payments Subject to Withholding: Include in this box any other payment made during the year to a nonresident person that is not included in other boxes of this
form and that was subject to withholding at source.
Box 14 - Payments for Services Rendered outside of Puerto Rico: Include in this box the payments not subject to withholding made for services rendered outside Puerto Rico,
except those provided by Section 1035.01(a)(3)(A) of the Code, that must be included in Box 2 of this form.
Box 15 - Other Payments Not Subject to Withholding: Include in this box any other payment that was not subject to withholding at source made to a nonresident person during the year.
|