TAX CREDIT MANAGER
SUMMARY OF ADMINISTRATIVE DETERMINATION NO. 22-11
AND CIRCULAR LETTER 23-02
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The Tax Credit Manager (“MCC”, in its Spanish acronym) is a tool that will be part of the Unified System of Internal Revenue (“SURI”) of the Department of Treasury (“Treasury”) that will allow taxpayers to carry out the transactions related to your tax credits.
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The MCC implementation date is January 1, 2023, and, therefore, any tax credit granted before January 1, 2023, will be considered a Pre MCC Credit. It is not necessary to register the Pre MCC Credits in the driver in SURI.
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Any tax credit granted after January 1, 2023, will be considered a Post MCC Credit and must be duly registered with the MCC in order to be claimed or transferred.
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The MCC will be available as of January 18, 2023.
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In the MCC each taxpayer will have a link in their income tax account in SURI where they can find all the information regarding their tax credits and their administration.
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Any taxpayer who wishes to register a credit in the MCC must have an active income tax account (Account 200) registered in their account in SURI.
PRE MCC CREDIT
The Secretary of Treasury issues Administrative Determination No. 22-11 with the purpose of establishing, among other things, the transitory provisions applicable to Pre MCC Credits.
A Pre-MCC Credit will be considered:
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Any tax credit used in an income tax return corresponding to taxable years beginning before January 1, 2023, including any carryover balance from previous years, and any tax credit whose issuance date is prior to January 1, 2023.
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In the case of Credits for Investment in Research and Development Activities, Pre MCC Credits will consider those registered in the CCI Portal as of January 18, 2023.
Rules of use:
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All Pre MCC Credit may be claimed against the income tax during a period of 3 taxable years after the date of implementation of the MCC.
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It is determined that the first taxable year is the taxable year 2023. Therefore, Pre MCC Credits may be claimed up to the taxable year 2025.
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Any available and unused balance of Pre MCC Credits at the end of the 3-year period may not be claimed or carried forward to subsequent taxable years.
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As of the taxable year 2026, only Post MCC Credits may be claimed.
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The buyer of a Pre MCC Credit will be subject to the same limitations applicable to the seller.
POST MCC CREDIT
The Secretary of Treasury issues Circular Letter No. 23-02 with the purpose of establishing the steps to be followed by taxpayers in relation to Post MCC Credits.
A Post MCC Credit will be considered:
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Any tax credit generated in the income tax return corresponding to taxable years beginning after December 31, 2022. These are usually considered non-transferable credits.
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Any tax credit, granted through administrative determination, certification, or Accreditation Certificate issued by any Regulatory Agency, whose issuance date is as of January 18, 2023, regardless of the taxable year in which the tax credit application was submitted and regardless of the taxable year for which all or part of the tax credit is available for the first time, included, but not limited to, film and R&D tax credits.
Post MCC Credit Registration:
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If the Post MCC Credit was granted by the Treasury, it will be automatically registered at the time it is granted and the seller will not have to register it.
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If the Post MCC Credit was granted by another regulatory agency, other than the Treasury, you must follow the following steps to register:
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Access your SURI account.
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Select the “Summary” tab and, under the Income Tax account section, click the “Forms, periods and other options” link.
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Click on the “Tax Credits” link.
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Click on the link “Register a Tax Credit”.
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Select the type of credit you want to register.
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Complete all fields with the requested information.
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Attach a copy of the administrative determination or certification issued by the Regulatory Agency that granted the tax credit.
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Submit the request and confirm.
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Once the Treasury reviews the registration request and confirms that the information submitted by the taxpayer for the Post MCC Credit registration is correct, it will approve the registration request and the Post MCC Credit will be available to the taxpayer in the link "Access my Tax Credits of the MCC”.
Notification of Transfer or Sale of Post MCC Credit:
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Once the legal transfer of the Post MCC Credit has been completed, the seller must initiate the transaction notification process through the MCC. This procedure is necessary so that the Post MCC Credit is reflected in the account of the new holder thereof and he or she can claim the Post MCC Credit against their income tax.
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To notify the sale or transfer of the Post MCC Credit:
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Access your SURI account.
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Select the Summary tab and, under the Income Tax account section, click the Forms, periods, and other options link.
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Click on the Tax Credits link.
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Press the link Access my Tax Credits.
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Select the tax credit you wish to sell by clicking the Sell link that will appear in the column to the left of the tax credit. For the purposes of this procedure, only the tax credits that are available for sale will show said link.
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Complete all fields with the buyer's information and the amount of credit transferred or sold. Before submitting the application, be sure to verify that the buyer's information and the amount of the credit are correct.
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Submit the request and confirm.
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Once the request is submitted by the seller, the buyer will have the opportunity to review the transaction information. For these purposes, you will receive an alert and you must complete the following steps:
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Access your SURI account.
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Select the Alerts tab and click the Confirm Credit Sale link.
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On this screen you will see the information of the seller and the details of the transaction. After verifying said information, you must accept or reject the transfer or sale of the tax credit.
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Submit the request and confirm.
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