What Is Form 480.6a for Services Rendered?
Understand Puerto Rico's Form 480.6a, the informative return for reporting service payments and managing mandatory income tax withholding obligations.
Determining the Filing Obligation
Any entity engaged in a trade or business in Puerto Rico must file informative returns for certain payments. This responsibility falls on the “payer,” the business making payments, not the service provider who receives the income. The purpose is to report these payments to the Departamento de Hacienda (Department of Treasury) for tax assessment.
The filing obligation is triggered when a business pays a total of $500 or more to a single service provider during a calendar year. For these transactions, the payer must issue Form 480.6SP. This form is specifically for services rendered, while Form 480.6A is used for other types of income not subject to withholding.
This reporting requirement applies to a broad range of payments. It includes compensation for professional services from consultants, lawyers, or accountants. The rule also covers commissions where no employer-employee relationship exists and other payments for services.
Information and Withholding Requirements for Completion
Before completing Form 480.6SP, the payer must gather specific information for both parties. For the payer, this includes their full legal name, business address, and employer identification number (EIN). For the payee, the payer must have their full name, address, and Social Security Number (SSN) or EIN. Accuracy is important, as mismatches can lead to processing delays.
The form requires the total amount paid for services during the calendar year. Payments for services are generally subject to a 10% withholding tax, which the payer is responsible for remitting to the Department of Treasury. However, a service provider may obtain a waiver from the Department, which relieves the payer of the withholding obligation. Form 480.6SP is used to report the gross payment and any tax that was withheld.
Submission Process and Deadlines
The submission process for Form 480.6SP is handled electronically through the Department of Treasury’s online portal, SURI (Sistema Unificado de Rentas Internas). Filers must log into their SURI account to upload or enter the required data.
The payer must furnish a copy of the completed form to the service provider and file the return with the Department of Treasury by February 28 of the year following the payments. After submitting through SURI, the system provides a confirmation receipt, which should be retained as proof of filing.