On March 28, 2016, the United States District Court for the District of Puerto Rico issued an order and opinion in the case Wal-Mart Puerto Rico Inc. v. Juan Z. Zaragoza Gómez, Civil No. 3:15-cv-03018 (“Walmart Case”), where it declared invalid one of the components of the Alternative Minimum Tax (“AMT”) calculation, more specifically Section 1022.03(b)(2) and (d) of the Puerto Rico Internal Revenue Code of 2011, as amended, (the “PR Code”). On August 24, 2016, the Court of Appeals of the United States for the First Circuit confirmed the opinion of the United States District Court for the District of Puerto Rico in the Walmart Case.
As a result of the holding of the Walmart case, the Puerto Rico Department of Treasury (“Treasury”) issued on September 30, 2016 Administrative Determination No. 16-11 to: (i) clarify the applicability of the AMT for taxable year 2016 and (ii) establish the procedure to claim as a credit the taxes paid in excess, if any, during the taxable year 2015.