Treasury simplifies gas and diesel tax refund processes for farmers

Secretary of the Department of Finance, Francisco Pérez Alicia, announced the simplification of the procedure for requesting reimbursement of taxes related to the purchase of ‘gas oil’ and ‘diesel oil’ for the operation of machinery and vehicles used in agricultural activities .

As indicated through a press release, this move responds to the direct request of farmers and will establish the process through SURI, exclusively under the Bonafide Farmer Refund Link.

“We continue to review processes across the Treasury Department and integrate more technology, so different sectors can benefit from the incentives available and complete their processes quicker and easier. In this case, we had a direct request from farmers who asked us to review the tax refund process to make it more accessible and this is now available,” the official said.

In SURI, bona fide farmers can request reimbursement of excise tax on ‘gas oil’ or ‘diesel oil’ acquired for exclusive use in the operation of agricultural, livestock and poultry machinery and vehicles. This includes the breeding of native-bred horses or Paso Fino horses, purebred Puerto Rican horses and the operation of machinery or vehicles of producers, processors, pasteurizers or sterilizers of milk or its derivative products, as well as other equipment used in the agro-industry. Also included. agricultural operation.

Pérez Alicia advised farmers to refer to Internal Revenue Circular Letter No. 23-15, available at https://hacienda.pr.gov/publicaciones/carta-circular-de-rentas-internas-num-23-15-cc-link Available at. RI-23-15, which establishes the requirements to be met and the process for submitting applications through SURI. It also explains how to request a bonafide Farmer Identification Number (Farmer ID), which will be required to be able to submit the refund request.

Farmers can submit refund requests per month, including details of the challan along with date, number of liters purchased and amount.

To process and approve a reimbursement request, it is necessary to include as evidence all invoices, which are in the name of the bona fide farmer submitting the request and which indicate: the name of the station or supplier; Description of the product being purchased (i.e., “diesel oil” or “gas oil”); The date of the invoice; The quantity in liters of “Diesel Oil” or “Gas Oil” earned in the transaction, as applicable and the total amount paid by the farmer.

If a request requires amendment, the farmer will have a period of 120 days after filing the original reimbursement request. The Department will not impose any limit on the maximum number of liters to be included in the monthly request, nor on the maximum or minimum amount of reimbursement for which a farmer is entitled to claim.

The Secretary of the Department of Agriculture, Ramón González Beiro, was pleased with the simplification of reimbursement procedures and highlighted that it encourages the sector to continue its development. “It is important to provide our agricultural sector with incentives that represent a relief to the operations of their farms. By supporting them, we promote better food production, which boosts local consumption. We encourage all of our farmers to apply so they can benefit from this. “We will continue to promote our agriculture,” the official said.

Steps to follow if you are requesting a refund for the first time

If you are accessing your account for the first time bona fide farmer compensationYou must select the option Add access to this account Select more options fileTo activate the account and request your refund monthly.

On the Banking Information screen, you will need to enter your account information to submit a refund, as payments will be made exclusively by direct deposit. The system will automatically determine the refund amount for each invoice included in the refund request.

It shall be reimbursed at the rate of $0.04 for each gallon or fraction, as provided in Section 3020.06 of the Puerto Rico Internal Revenue Code of 2011, as amended. In addition, the reduced tax will be refunded at the rate of $15.50 for each barrel or fraction of ‘gas oil’ or ‘diesel oil’.

Refund requests are voluntary, so the Department will not generate notifications requiring them to be filed, nor will credits be presented to the taxpayer’s account in respect of these requests.