Income Withholding For Support Puerto Rico

The withholding requirements for independent contractors.

Income withholding for support puerto rico. In general companies or individuals in puerto rico paying for services rendered must withhold a certain percentage of the amount paid for tax purposes as stipulated by a december 10 2018 amendment to section 1062 03 of the puerto rico internal revenue code of 2011. In the case of non resident foreign corporation a 29 withholding tax wht rate is applicable on its puerto rico source gross income not effectively connected with a pr trade or business. This is an annual determination made at the time the income tax return is filed and the tax is. The current cit rate is comprised of a 18 5 normal tax and a graduated surtax computed on the surtax net income.

Payment for services rendered in puerto rico by entities doing business in puerto rico duly registered in puerto rico state department.