2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 86 - Cooperative Savings and Credit Associations Act of 2002 (§§ 1361 — 1371b) › Subchapter VI - Operating Capital, Loans and Limitations (§§ 1366 — 1366i) › § 1366g - Tax exemption

(a) General rule.— Except as provided in subsection (b) of this section:
(1) Cooperatives, their subsidiaries or affiliates, as well as the income from all their activities or operations, all their assets, capital, reserves, and surplus, and those of their subsidiaries or affiliates, shall be exempt from any type of income, property, and excise taxes, as well as license fees or any other levy imposed or to be imposed in the future by the Commonwealth of Puerto Rico, or any political subdivision thereof, except for the sales and use tax established in §§ 32021 and 32022 of Title 13, the tax authorized by § 33344 of Title 13, the taxes imposed under §§ 32281, 32282 and 32283 of Title 13, the value-added tax established in § 32211 of Title 13, and excise taxes imposed under §§ 31621-31634 of Title 13.
(2) All stocks and securities issued by cooperatives and by any of their subsidiaries or affiliates shall be exempted for their total worth, as well as the dividends or interest paid by virtue thereof, from all types of taxes on income, excise tax, property taxes, license fees, or any other tax imposed or to be imposed in the future by the Commonwealth of Puerto Rico or any political subdivision thereof.
(3) Cooperatives and their subsidiaries or affiliates shall be exempted from the payment of state or municipal fees, duties or tariffs, including the payment of fees for licenses, patents, permits and registrations; the payment of charges, fees, internal revenue stamps or vouchers related to the granting of all types of public and private documents, the payment of charges, fees, or internal revenue stamps or vouchers with regard to the registration thereof in the Property Registry or any other public registry or government office, and the payment of charges, fees internal revenue stamps or vouchers regarding the issue of certificates by said registries or any other government office. The cooperatives and their subsidiaries or affiliates shall also be exempted from the payment of charges, fees, internal revenue stamps or vouchers, excise taxes, or tariffs required in the General Court of Justice of Puerto Rico, or by any agency, instrumentality, public corporation of the Commonwealth of Puerto Rico, or any political subdivision thereof.
(4) Exemptions granted under this section to the subsidiaries or affiliates of cooperatives shall apply while said subsidiaries or affiliates are subject to the control of one or more cooperatives.
(b) Taxable years beginning after December 31, 2008, and before January 1, 2012.— Notwithstanding the provisions of Subtitle A of the “Internal Revenue Code of 1994”, as amended, and this chapter, during each of the taxable years beginning after December 31, 2008, and before January 1, 2012, or until the revenues determined under § 15 of Act No. 37 of July 10, 2009, have been raised, savings and credit unions covered under this chapter, as well as their subsidiaries and affiliates, shall be subject to a special five percent (5%) tax on the amount of their net income, to be computed in accordance with generally accepted accounting principles and regardless of the provisions of § 1101 of the “Internal Revenue Code of 1994”, but only to the extent that said net income exceeds two hundred fifty thousand dollars ($250,000). Such tax shall be reported, paid, and collected in the form and manner prescribed by the Secretary of the Treasury by regulations, circular letter or other administrative determination or communication of a general nature.
History —Oct. 28, 2002, No. 255, § 6.08; Mar. 9, 2009, No. 7, § 28; July 10, 2009, No. 37, § 36; Dec. 22, 2009, No. 194, § 22; June 30, 2013, No. 40, § 4; Sept. 30, 2015, No. 159, § 36.