How are different expense categories treated in Puerto Rico for reimbursement?

Expenses Invoicing Requirements

In Puerto Rico, all transactions that generate a fiscal debit or credit are to be supported by invoices. All of the merchants in Puerto Rico are obliged to issue an Invoice no matter the amount and / or type of products. Document Type: “Invoice” or “Receipt”

Passports/Work Permits/Visa

mployees are responsible for ensuring they hold a valid, current passport/work permit/visa. Expenses for obtaining/maintaining a passport may be reimbursable upon supervisory approval and will be considered a Taxable Expense. Velocity Global can assist with obtaining passports, work permits and/or business visas upon request by the end client.

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Velocity Global currently does not support per diem in Puerto Rico.

Air Travel/Bus and Train

No issues, can be claimed as non-taxable as long as receipt is supplied

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

Toll fees may be claimed. Please obtain a receipt/ invoice where possible. If no receipt is available, clearly state this in the expense description to avoid payment being withheld. Toll fees are only claimable where travel is required from the home office or the office to/or returning from a client.

Other Business Travel-Related Expenditure

Business related expenditures will be reimbursed. Receipts are required.

Travel Insurance

The company will reimburse employees travel insurance expense exclusively for the period of the business trip and it should be pre-authorized.

Mileage and Fuel

For employees who have a vehicle, Velocity recognizes mileage based on the current table of the Treasury of Puerto Rico. (Contraloría General de la República de Puerto Rico) for the Type 2 Light Vehicles –B4.

“The employee authorized to use a private car on official missions will receive reimbursement of transportation expenses at the rate of 0.70¢ for every mile driven.” This is the maximum allowed but the client can set a rate of their choosing.

Accommodation

No issues, can be claimed as non-taxable as long as receipt is supplied

Meals (travel/events/during work)

No issues, can be claimed as non-taxable as long as receipt is supplied

Client Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied

Staff Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied

Mobile Phone bills

Employees are entitled to expense business usage on their personal mobile phones. Employees may only claim for the amount of money they are out of pocket as a result of making business calls from their personal mobile phone. Employees are required to submit an itemised bill clearly apportioning between business calls and personal calls.

Broadband (Internet)

Upon supervisory approval, Velocity Global can reimburse these expenses where Broadband internet is utilized for Business Purposes.

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

Internal fixed assets policy.

Furniture

Internal fixed assets policy.

Stationery

No issues, can be claimed as non-taxable as long as receipt is supplied

Gifts

No issues, can be claimed as non-taxable as long as receipt is supplied

Coworking and Office Rentals

No issues, can be claimed as non-taxable as long as receipt is supplied

Bank Charges

Bank or credit card charges incurred because of the employee's delays claiming expenses will not be reimbursed.

Foreign Currencies

Each employee is responsible for obtaining the necessary foreign currency on international travel, commission expenses for currencies purchased on foreign travel will be reimbursed with the respective supporting documentation.

Annual subscriptions

No issues, can be claimed as non-taxable as long as receipt is supplied

Training Expenses

Upon approval of the supervisor, a membership will be reimbursed per employee, per association, when it is specifically related to the functions of their job, with respective supporting documentation.

Medical Claims/Health Check Up and related items/Medical Insurance

N/A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

No issues as long as event directly related to business. Please provide relevant receipts

Meals (travel/events/during work)

Meals on business trips are not taxable.

Di minimus expenses (Tips, no receipt)

N/A

Payroll Reporting

N/A

Additional Reporting

N/A

Review process

N/A