reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter B - Income Tax Withholding at the Source (§§ 30271 — 30282) › § 30272 - Withholding of tax at source on awards and settlements

(a) Indemnity payments received on judicial proceedings or in extrajudicial claims that constitute taxable income for the purpose of this part.— Every employer, insurance company or any other person required to make indemnity payments under a court order or extrajudicial claim, shall be required to withhold seven percent (7%) of the amount of those payments made which constitute taxable income for purposes of this part. For purposes of this section, taxable income includes, among others, the following items:
(1) Any compensation portion representing or substituting loss of income or salaries, including lost profits, and
(2) indemnity for lost salaries in the case of destitution or suspension from employment and salary, or for illegal dismissal.
(b) Withholding subject to provisions on withholding at source on wages.— Deductions and withholdings under subsection (a) shall be subject to the provisions of this part that apply to income tax withheld at source on wages as it relates to the manner and time to make the deposit of the amounts withheld and the payer’s responsibilities with respect to the amounts withheld. Likewise, there shall apply the penalties established for employers who fail to withhold and deposit the amounts withheld established in §§ 33001 et seq. of this title, including any person that has failed, at the time of filing his income tax return, to remit to the Department of the Treasury the total amount deducted and withheld on payments described in subsection (a) of this section corresponding to the taxable year reported on the return, shall not claim such payments as operating expenses.
(c) Information returns.— The Secretary shall prescribe by regulations to that effect, the manner in which the payments described under subsection (a) and the amounts withheld thereunder shall be reported.
(d) Withholding as credit against tax.— Every person to whom withholding at source and or subsection (a) has been made may claim the amount withheld during the taxable year as a credit against his/her tax liability.
(e) Exception.— The requirement to deduct and withhold set forth in subsection (a) will not apply to payments by reason of indemnity under a sentence pronounced by the court or under an extrajudicial claim made to nonresident individuals or foreign corporations or partnerships not engaged in trade or business in Puerto Rico who are subject to the withholding set forth in §§ 30278 and 30281 of this title.
History —Jan. 31, 2011, No. 1, § 1062.02, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 66.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter B - Income Tax Withholding at the Source (§§ 30271 — 30282) › § 30280 - Income tax withholding at source attributable to distributive share of a nonresident alien individual partner of a special partnership or shareholder of a corporation of individuals

(a) Requirement to withhold.— The partner or shareholder to whom the administration of the special partnership or of the corporation of individuals has been delegated, or any other persons to whom the requirement to furnish the report described in §§ 30242 or 30247 of this title to the partners or stockholders, has been delegated, shall deduct and withhold an amount equal to twenty-nine percent (29%) of the distributive share of a partner in the income of the special partnership, or an amount equal to thirty-three percent (33%), or the maximum applicable rates as provided in § 30061 of this title, of the distributive share of a shareholder in the income of the corporation of individuals, of a partner or of a shareholder who is a foreign individual, an estate, or a nonresident trust. The distributive share in the income of the partnership or the corporation of individuals shall be deemed to be distributed pursuant to the provisions of §§ 30566 or 30584(j) of this title, as applicable. The provisions of this subsection shall not apply to the share attributable to a nonresident shareholder not engaged in trade or business in Puerto Rico of international insurers or of international insurer holding companies which are compliant with § 4304 of Title 26.
(b) Liability of the payer.— Except as otherwise provided, every person required to deduct and withhold any tax under the provisions of this section shall be liable to the Secretary for the payment of such tax and shall not be liable to any other person for the amount of any of such payments.
(c) Failure to withhold.— If the withholding agent fails to withhold the amount referred to in subsection (a), unless the nonresident partner or shareholder pays the tax to the Secretary, the amount which should have been deducted and withheld shall be collected directly from the special partnership, the corporation of individuals, or the person in which the requirement to deduct and withhold the income tax was delegated.
History —Jan. 31, 2011, No. 1, § 1062.10, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 73.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30291 - Information at source

(a) Payments of fixed or determinable income of five hundred dollars ($500) or more. — All persons engaged in a trade or business in Puerto Rico, including lessees or mortgagors of personal or real property, fiduciaries and employers who made payments to individuals for rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments or other fixed or determinable gains, profits, or income other than the payments described in § 30295 or § 30296 of this title, of five hundred dollars ($500) or more, or who made interest payments of five hundred dollars ($500) or more to individuals in any taxable year, except tax-exempt interest under this part, not including interests considered in § 30102(a)(3) of this title, (or, in the case that such payments are made by the Government of Puerto Rico or any instrumentality or political subdivision thereof, the officials or employees who have information as to such payments and are required to make returns in regard thereto under the regulations provided hereinafter) shall render, on or before February 28 of the following year, a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name, address, and account number of the recipient of such payments.
(b) Returns regardless of amount of payment. — Such returns may be required, regardless of amounts:
(1) In the case of payments of interest on bonds, mortgages, deeds of trust, or other similar obligations of corporations or partnerships, and
(2) in the case of collections of items, not payable in Puerto Rico, of interest on bonds of foreign countries and interest on the bonds of and dividends or profits from foreign corporations or partnerships by persons undertaking as a matter of business or for profit the collection of foreign payments of such interest, dividends, or profits by means of coupons, checks, bills of exchange, or in any other form.
(c) Recipient to furnish name, address, and account number. — To make effective the provisions of this section, the name, address, and account number of the recipient of income shall be furnished upon demand of the person paying the income.
(d) Statements to be furnished to individuals with respect to whom the information is required. — Every person who renders the information return described in subsection (a) shall furnish a copy thereof to every individual with respect to whom said return is made, on or before the date prescribed in said subsection (a).
History —Jan. 31, 2011, No. 1, § 1063.01, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30292 - Information on transactions with finance businesses

(a) Any financial business, as this term is defined in subsection (c), and every broker shall file a report to the Secretary under such regulations and in such form, manner, and extent as prescribed by him/her through regulations, of each deposit, withdrawal, currency exchange, payment, investment, transfer, or purchase and sale of securities made by, through, or from said financial business or broker, which involves a transaction in currency in excess of ten thousand dollars ($10,000). This report shall contain the taxpayer’s name, street and/or mailing address, and account number, and the amount of the transaction or the total sum of the transactions, in the event that more than one transaction per person has been made within a thirty-one (31)-day period. The financial businesses and the brokerage houses shall exercise the highest degree of diligence in fulfilling the obligation imposed above.
(b) For purposes of this section, the term “currency transaction” shall mean any physical transfer of legal tender in the United States, or a foreign country.
(c) For purposes of this section, the term “finance business” shall mean and include every agency, branch, office, or establishment of any person doing business in the Commonwealth of Puerto Rico, in one or more of the following capacities:
(1) A commercial bank or trust company.
(2) A private bank.
(3) A savings and loan association or a building and loan association.
(4) An insured institution as defined in Section 401 of the National Housing Act.
(5) A savings bank, industrial bank, or other savings or financial institution.
(6) A credit union.
(7) A savings and credit union.
(8) A securities or brokerage house.
(9) Institutions engaged in making mortgage loans, commonly known as mortgage banks or mortgage brokers.
(10) Any other entity organized or authorized under the banking or financial laws of the Government of Puerto Rico, the United States of America, of any state of the Union, or a foreign country.
(d) For purposes of this section, financial institutions and brokerage houses shall comply with the requirements established herein by filing with the Department of the Treasury a true and exact copy of the report on transactions in currency that they must file with the U.S. Department of the Treasury pursuant to the requirements established by Public Law No. 91-508 of October 26, 1970, known as the “Bank Secrecy Act”, as amended, and codified by Public Law 97-258 of September 13, 1982, or any subsequent law that replaces it.
History —Jan. 31, 2011, No. 1, § 1063.02, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 75.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30293 - Reports on interest payments

(a) Any person who credits or makes payments of fifty dollars ($50) or more for interest as described in § 30084 or 30085 of this title to any individual and is required under § 30279 of this title to withhold taxes on the payment of such interest, shall file a return in accordance with the forms and regulations prescribed by the Secretary, specifying the total amount of interest paid or credited, the tax deducted and withheld, and the name, address, social security number or employer identification number issued by the Internal Revenue Service, and account number, if granted, of the person to whom the payment was made, or the tax withheld. Said return shall be filed on or before February 28th of the year following the calendar year in which the interest was paid or credited.
(b) Reports to recipients.—
(1) In general.— Every person who files a return under subsection (a) shall furnish a written statement to every individual included in said return stating:
(A) The name, address, and account number of the payer of the interest;
(B) the name, account number, and address of the recipient of the interest;
(C) the amount of interest paid or credited to the individual included in the return, and
(D) the amount of tax deducted and withheld from such individual under § 30279 of this title.
(2) Date of statement.— The written statement, required by clause (1) of this subsection shall be furnished to the individual on or before February 28 of the year following the calendar year for which the return referred to in subsection (a) was filed. A duplicate of said statement shall be filed with the Secretary.
History —Jan. 31, 2011, No. 1, § 1063.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 76.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30295 - Information by corporations and partnerships

(a) Dividend or profit payments. — Every corporation or partnership shall file, on or before February 28 of the following year, a correct and duly sworn return of its payments of dividends or profits, stating the name, address, and account number of each shareholder or partner, the number of shares of stock he/she owns or his/her interest in the shares and the amount of the dividends or profits paid to him/her during the taxable year.
(b) Earnings distributed. — Every corporation or partnership shall, when required by the Secretary, furnish him/her a statement of such facts as will enable him/her to determine the portion of the earnings or profits of the corporation or partnership, including gains, profits, and income not taxed, accumulated during such periods as the Secretary may specify, which have been distributed or ordered to be distributed to its shareholders or partners during such taxable years as the Secretary may specify.
(c) Accumulated earnings and profits. — When required by the Secretary, every corporation or partnership shall submit to him/her a correct statement of accumulated earnings and profits, and the names, addresses, and account numbers of the persons who would be entitled to the same if divided or distributed, and of the amounts that would be payable to each.
(d) Dissolution or liquidation. — Every corporation or partnership shall, within thirty (30) days after the adoption by the corporation or partnership of a resolution or plan for its dissolution or for the total or partial liquidation of its capital stock, file a correct and duly sworn statement with the Secretary setting forth the terms of such resolution or plan and such other information as the Secretary may by regulation prescribe.
(e) Distributions in liquidation. — Every corporation or partnership shall file, on or before February twenty-eight (28) of the following year or on such other date as established by the Secretary through regulations, a duly sworn return of its distributions in liquidation, stating name, address, and account number of each shareholder or partner, number, and class of shares he/she owns or his/her interest in the profits and the amount paid to him/her or, if the distribution is in property other than money, the fair market value as of the date of distribution of the property distributed to said shareholder or partner.
(f) Statements shall be furnished to the persons about whom the information is provided. — Every corporation or partnership that files the return required in subsection (a) or (e) of this section shall furnish a copy thereof to every shareholder or partner in whose name the return is made, on or before the date prescribed in subsection (a) or (e), whichever applies.
History —Jan. 31, 2011, No. 1, § 1063.05, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30296 - Statements of brokers and stockbrokers

(a) Any person doing business as a broker or stockbroker, as determined by the Secretary through regulations, including financial institutions established in § 30292(c) of this title, acting as a broker or stockbroker shall submit to the Secretary a true and exact statement containing the name, residential or mailing address, his/her taxpayer account number, and information concerning interests, gross interests, and dividends paid to every natural person, as determined by the Secretary through regulations. This statement shall be filed on or before February 28th of the year following the calendar year in which said income payment was made.
(b) The broker or stockbroker shall exercise the highest degree of diligence in complying with the obligation imposed by this section.
History —Jan. 31, 2011, No. 1, § 1063.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 77.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30299 - Regulations to require information statements using electronic means

(a) In general.— The Secretary may require that the information statements that must be filed under the provisions of this part, be filed using magnetic or electronic means. The Secretary shall promulgate the regulations needed to establish the standards that shall apply when electronic means are required to be used for these purposes.
(b) Requirements of the regulations.— Upon promulgating the regulations under subsection (a), the Secretary shall not require a person to file information statements using electronic means unless such person must file at least five (5) statements during a calendar year. However, the Secretary may, whenever he/she deems it convenient, reduce to less than five (5) the number of information statements required to be filed through electronic means in any taxable year.
(c) The Department of the Treasury shall provide an electronic authentication mechanism which serves as confirmation of the electronic transaction to those citizens who file information statements through electronic means.
(d) Failure to file.— If any person who is required to submit information statements using electronic means fails to file same in such manner, it shall be considered as if such statements have not been filed; therefore, said person shall be subject to penalties for failure to file the income tax returns or statements set forth in §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 1063.09, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 80.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30300 - Annual statement of reconciliation of income subject to withholding

Any teller or withholding agent who is required to make the deduction and withholding at source, imposed by §§ 30086, 30272, and 30279 of this title as well as any deduction and withholding at the source imposed under §§ 10641 et seq. of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, or any other previous or subsequent analogous law, or §§ 6001 et seq. of Title 23, known as the “Puerto Rico Tourist Development Act”, or any other previous or subsequent analogous law, and to file an information statement for the amounts deducted and withheld, shall submit, no later than on February 28 of the following year, an annual reconcilement statement for each kind of income. Said reconciliation statement shall include the amounts paid and withheld, as well as the kind of income paid.
History —Jan. 31, 2011, No. 1, § 1063.10, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30301 - Information to the Secretary on payment received on account of automobile lease

(a) Information regarding payment of automobile lease. — Any person engaged in a trade or business in Puerto Rico, and that in the operation of said trade or business, received from any individual, business, partnership, or corporation payments on account of vehicle leasing, pursuant to the provisions of § 30127(a)(3)(H) of this title, shall be required to file an annual information statement, as provided in subsection (b) of this section. The original of such statement shall be furnished to the payer whose name appears in the document on or before January 31 of the following calendar year for which the copy of the statement must be filed with the Secretary.
(b) Information statement on payments of automobile lease: — For the purpose of this section, the information statements shall be prepared and filed adjusting it to the manner prescribed by the Secretary, and shall contain, without limitation, the following information:
(1) The name, address, and account number of the person required to file the statement of the payer from whom the payments described in subsection (a) of this section are received;
(2) the amount of the payments received from such individual during the calendar year;
(3) any other information prescribed by the Secretary through regulations.
History —Jan. 31, 2011, No. 1, § 1063.11, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30302 - Reports on income subject to alternative base tax

(a) Any person, in whatever capacity acting, that credits or makes payments of payments of five hundred dollars ($500) or more for interest, rents dividends, or pensions, annuities or any other item of income subject to alternate base tax shall be required to report such payments to the Secretary and the individual, in such forms and in such manner as prescribed by the Secretary through regulations, circular letter or any other general administrative determination or communication.
History —Jan. 31, 2011, No. 1, added as § 1063.12 on Dec. 10, 2011, No. 232, § 81.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter C - Information Returns (§§ 30291 — 30303) › § 30303 - Information declaration and return on distributions made by pension, stock bonus, or profit-sharing plans subject to the provisions of § 30391 of this title

(a) Any person required to deduct and withhold any tax under the provisions of § 30391(b)(3) of this title shall furnish an information declaration to the recipient of the distribution or payment and file with the Secretary a return relating to the tax deducted and withheld not later than February 28th of the following year. Said information declaration and return shall contain such information and shall be made in such form as the Secretary may prescribe by regulations. If the person making the distribution or payment fails to furnish the information return or to file the return as required under this subsection shall be subject to the penalties established in §§ 33111 and 33121 of this title, respectively.
History —Jan. 31, 2011, No. 1, added as § 1063.13 on Dec. 10, 2011, No. 232, § 82.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter A - Tax Imposition (§§ 30331 — 30339) › § 30331 - Tax imposition on partners, not partnerships

A partnership subject to the provisions of this chapter shall not be subject to the income tax imposed by this part. The persons carrying on business as partners shall be liable for income tax only in their separate or individual capacities. For the purpose of this part, any partner of a partnership engaged in a trade or business in Puerto Rico shall be deemed as engaged in a trade or business in Puerto Rico with respect to its distributive share in the income, gain, loss, deduction, or credit of the partnership.
History —Jan. 31, 2011, No. 1, § 1071.01, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter A - Tax Imposition (§§ 30331 — 30339) › § 30333 - Partnership computations

(a) Income and deductions. — The net taxable income of a partnership for any taxable year shall be computed in the same manner as in the case of an individual except that:
(1) The items described in § 30332(a) of this title, shall be separately stated; and
(2) the following deductions shall not be allowed to the partnership:
(A) The deductions for personal exemptions provided in § 30138(a) of this title;
(B) the net operating loss deduction provided in § 30134 of this title;
(C) the taxes provided in § 30124 of this title with respect to the taxes described in § 30138(a) of this title;
(D) the deductions granted by § 30135 of this title.
(3) Shall be entitled to the accelerated depreciation provided in § 30182 of this title.
(b) Elections of the partnership. — Any election affecting the computation of taxable income derived from a partnership shall be made by the partnership, except that any election under § 30201 of this title (relating to taxes of the United States and its possessions, and of foreign countries) shall be made by each partner individually.
History —Jan. 31, 2011, No. 1, § 1071.03, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter A - Tax Imposition (§§ 30331 — 30339) › § 30335 - Determination of basis of partner’s interest

(a) General rule.— The adjusted basis of a partner’s interest in a partnership shall be the basis of such interest determined under § 30342 of this title (relating to contributions to a partnership) or § 30362 of this title (relating to transfers of partnership interests)—
(1) Increased by the sum of his/her distributive share for the taxable year and prior taxable years of:
(A) Taxable income of the partnership as determined under § 30333 of this title;
(B) income of the partnership exempt from tax under this part, or under the provisions of any other law that grants total or partial tax exemption with respect to income derived from its operations, and
(C) the amount of the deductions of agricultural income granted by § 30132 of this title; and
(2) Decreased (but not below zero) by distributions by the partnership as provided in § 30353 of this title and by the sum of his/her distributive share for the taxable year and prior taxable years of:
(A) Losses of the partnership, and
(B) The amount of credits allowed under § 6013 of Title 23, § 6344(a) of Title 23, or from any other law granting similar credits.
(C) The withholdings at source of §§ 30280 and 30274 of this title; and
(D) expenditures of the partnership not deductible in computing its net income and not properly chargeable to capital account.
History —Jan. 31, 2011, No. 1, § 1071.05, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 86.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter A - Tax Imposition (§§ 30331 — 30339) › § 30338 - Continuation of partnership

(a) General rule. — For purposes of this chapter, an existing partnership shall be considered as continuing if it is not terminated.
(b) Termination. —
(1) General rule. — For purposes of subsection (a), a partnership shall be considered as terminated only if:
(A) No part of any business, financial operation, or venture of the partnership continues to be carried on by any of its partners in a partnership, or
(B) within a twelve (12)-month period there is a sale or exchange of fifty percent (50%) or more of the total interest in partnership capital and profits.
(2) Special rules. —
(A) Merger or consolidation. — In the case of the merger or consolidation of two or more partnerships, the resulting partnership shall, for purposes of this section, be considered the continuation of any merging or consolidating partnership whose members own an interest of more than fifty percent (50%) in the capital and profits of the resulting partnership.
(B) Division of a partnership. — In the case of a division of a partnership into two or more partnerships, the resulting partnerships (other than any resulting partnership the members of which had an interest of fifty percent (50%) or less in the capital and profits of the prior partnership) shall, for purposes of this section, be considered a continuation of the prior partnership.
History —Jan. 31, 2011, No. 1, § 1071.08, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter A - Tax Imposition (§§ 30331 — 30339) › § 30339 - Treatment of organization and syndication fees

(a) General rule.— Except as provided in subsection (b), no deduction shall be allowed to the partnership or to any partner for any amounts paid or incurred to organize a partnership or to promote the sale of, or to sell, an interest in such partnership.
(b) Deduction of organization fees.—
(1) Allowance of deduction.— Pursuant to the regulations prescribed by the Secretary, a partnership may elect that the organizational expenses to promote the sale of, or to sell, an interest in said partnership be allowable as a deduction ratably during a period of not less than sixty (60) months starting with the month in which the partnership begins business.
(2) Dispositions before close of amortization period.— In any case in which a partnership is liquidated before the end of the period to which clause (1) refers, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted from the gross income of the partnership.
(3) Organizational expenses.— For purposes of this section, organizational expenses are expenditures that:
(A) Are incident to the creation of the partnership;
(B) are chargeable to capital account, and
(C) are of a character which, if expended incident to the creation of a partnership having an ascertainable life, would be amortized over such life.
(4) The Secretary shall establish the application of this section through regulations.
History —Jan. 31, 2011, No. 1, § 1071.09, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 88.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter B - Computation on Contributions (§§ 30341 — 30344) › § 30342 - Basis of contributing partner’s interest

The basis of an interest in a partnership acquired by a contribution of property, including money, to the partnership shall be the amount of such money and the adjusted basis of such property to the contributing partner at the time of the contribution increased by the amount (if any) of gain recognized under subsection (b), (c), or (d) of § 30341 of this title to the contributing partner at such time.
History —Jan. 31, 2011, No. 1, § 1072.02, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter B - Computation on Contributions (§§ 30341 — 30344) › § 30343 - Basis of property contributed to partnership

The basis of property contributed to a partnership by a partner shall be the adjusted basis of such property to the contributing partner at the time of the contribution increased by the amount (if any) of gain recognized under subsection (b), (c), (d) or (e) of § 30341 of this title to the contributing partner at such time.
History —Jan. 31, 2011, No. 1, § 1072.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 89.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter B - Computation on Contributions (§§ 30341 — 30344) › § 30344 - Character of gain or loss on contributed unrealized receivables, inventory items, and capital loss property

(a) Contributions of unrealized receivables. — In the case of any property which:
(1) Was contributed to the partnership by any partner, and
(2) was an unrealized receivable in the hands of such partner immediately before such contribution, any gain or loss recognized by the partnership on the disposition of such property during the five (5)-year period beginning on the date of such contribution shall be treated as ordinary income or ordinary loss, as the case may be.
(b) Contributions of inventory items. — In the case of any property which:
(1) Was contributed to the partnership by a partner, and
(2) was an inventory item in the hands of such partner immediately before such contribution, any gain or loss recognized by the partnership on the disposition of such property during the five (5)-year period beginning on the date of such contribution shall be treated as ordinary income or ordinary loss, as the case may be.
(c) Contributions of capital loss property. — In the case of any property which:
(1) Was contributed by a partner to the partnership, and
(2) was a capital asset in the hands of such partner immediately before such contribution, any loss recognized by the partnership on the disposition of such property during the five (5)-year period beginning on the date of such contribution shall be treated as a loss from the sale or exchange of a capital asset to the extent that, immediately before such contribution, the adjusted basis of such property in the hands of the partner exceeded the fair market value of such property.
(d) Definitions. — For purposes of this section:
(1) Unrealized receivable. — Shall have the meaning given in § 30371(c) of this title (determined by treating any reference to the partnership as referring to the partner).
(2) Inventory item. — Shall have the meaning given in § 30371(d) of this title (determined by treating any reference to the partnership as referring to the partner and by applying § 30141(a) of this title, without regard to any holding period).
(3) Substituted basis property. — If any property described in subsection (a), (b), or (c) is disposed of in a nonrecognition transaction, the tax treatment which applies to such property under such subsection shall also apply to any substituted basis property resulting from such transaction. A similar rule shall also apply in the case of a series of nonrecognition transactions.
History —Jan. 31, 2011, No. 1, § 1072.04, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter C - Computations in Distributions (§§ 30351 — 30357) › § 30353 - Basis of distributee partner’s interest

In the case of a distribution by a partnership to a partner other than in liquidation of a partner’s interest, the adjusted basis to such partner of his/her interest in the partnership shall be reduced (but not below zero) by:
(1) The amount of any money distributed to such partner, and
(2) the amount of the basis attributable to such partner of distributed property other than money, as determined under § 30352 of this title.
History —Jan. 31, 2011, No. 1, § 1073.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 90.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter C - Computations in Distributions (§§ 30351 — 30357) › § 30355 - Character of gain or loss on disposition of distributed property

(a) Sale or exchange of certain distributed property.—
(1) Unrealized receivables.— Gain or loss on the disposition by a partner of unrealized receivables (as defined in § 30371(c) of this title) distributed by a partnership, shall be considered ordinary.
(2) Inventory items.— Gain or loss on the sale or exchange by a partner of inventory items (as defined in § 30371(d) of this title distributed by a partnership shall, if sold or exchanged within five (5) years from the date of the distribution, be considered ordinary.
(b) Holding period for distributed property.— In determining the period for which a partner has held property received in a distribution from a partnership (other than for purposes of subsection (a)), the provisions of § 30141(g) of this title shall apply
(c) Special rules.—
(1) Substituted basis property.—
(A) In general.— If any property described in subsection (a) is disposed of in a nonrecognition transaction, the tax treatment which applies to such property under such subsection shall also apply to any substituted basis property resulting from such transaction. A similar rule shall also apply in the case of a series of nonrecognition transactions.
(B) Exception for stock in a corporation or other entity subject to taxation as a regular corporation.— Paragraph (A) shall not apply to any stock in a corporation or other entity subject to taxation as a regular corporation received in an exchange described in § 30144(b)(5) of this title.
History —Jan. 31, 2011, No. 1, § 1073.05, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 91.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter C - Computations in Distributions (§§ 30351 — 30357) › § 30356 - Payments to a retiring partner or a decedent partner’s successor

(a) Payments considered as distributive share or guaranteed payment. — Payments made in liquidation of the interest of a retiring partner or a decedent partner shall, except as provided in subsection (b), be considered:
(1) As a distributive share to the recipient of partnership income if the amount thereof is determined with regard to the income of the partnership, or
(2) as a guaranteed payment described in § 30337(c) of this title if the amount thereof is determined without regard to the income of the partnership.
(b) Payments for interest in partnership. —
(1) General rule. — Payments made in liquidation of the interest of a retiring partner or a decedent partner, to the extent such payments (other than payments described in clause (2)) are determined, under regulations prescribed by the Secretary, to be made in exchange for the interest of such partner in partnership property, shall be considered as a distribution by the partnership and not as a distributive share or guaranteed payment under subsection (a).
(2) Special rules. — For purposes of this subsection, payments in exchange for an interest in partnership property shall not include amounts paid for:
(A) Unrealized receivables of the partnership (as defined in § 30371(c) of this title), or
(B) good will of the partnership, except to the extent that the partnership agreement provides for a payment with respect to good will.
(3) Limitation on application of clause (2).— Clause (2) shall apply only if:
(A) Capital is not a material income-producing factor for the partnership, and
(B) the retiring or decedent partner was a general partner in the partnership.
History —Jan. 31, 2011, No. 1, § 1073.06, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter D - Computation in Sales or Exchanges (§§ 30361 — 30363) › § 30361 - Recognition and character of gain or loss on sale or exchange

In case of a sale or exchange of an interest in a partnership, gain or loss shall be recognized to the transferor partner. Such recognized gain or loss shall be considered as gain or loss from the sale or exchange of a capital asset, except as otherwise provided in § 30371 of this title (relating to unrealized receivables and inventory items).
History —Jan. 31, 2011, No. 1, § 1074.01, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter D - Computation in Sales or Exchanges (§§ 30361 — 30363) › § 30362 - Basis of transferee partner’s interest

The basis of an interest in a partnership acquired other than by contribution shall be determined under § 30142 of this title.
History —Jan. 31, 2011, No. 1, § 1074.02, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter E - Miscellaneous Provisions (§§ 30371 — 30375) › § 30372 - Treatment of certain liabilities

(a) Increase in partner’s liabilities. — Any increase in a partner’s share of the liabilities of a partnership of which the partner is personally responsible pursuant to the laws under which the partnership was organized, or which such partner secures, or any increase in a partner’s individual liabilities by reason of the assumption by such partner of partnership liabilities, shall be considered as a contribution of money by such partner to the partnership.
(b) Decrease in partner’s liabilities. — Any decrease in a partner’s share of the liabilities of a partnership of which the partner is personally responsible pursuant to the laws under which the partnership was organized or which such partner secures, or any decrease in a partner’s individual liabilities by reason of the assumption by the partnership of such individual liabilities, shall be considered as a distribution of money to the partner by the partnership.
(c) Liability to which property is subject. — For purposes of this section, a liability to which property is subject shall, to the extent of the fair market value of such property, be considered as a liability of the owner of the property provided that the partner is personally responsible pursuant to the laws under which the partnership was organized, or that such partner secures said liabilities.
(d) Sale or exchange of an interest. — In the case of a sale or exchange of an interest in a partnership, liabilities shall be treated in the same manner as liabilities in connection with the sale or exchange of property not associated with partnerships.
History —Jan. 31, 2011, No. 1, § 1075.02, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter E - Miscellaneous Provisions (§§ 30371 — 30375) › § 30373 - Payments to a partner’s sucessor

The amounts allowed under § 30356(a) of this title as gross income of a successor in the interest of a decedent partner shall be treated as income with respect to the decedent as provided in § 30113 of this title.
History —Jan. 31, 2011, No. 1, § 1075.03, retroactive to Jan. 1, 2011.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter E - Miscellaneous Provisions (§§ 30371 — 30375) › § 30374 - Manner of electing optional adjustment to basis of partnership property

If a partnership files an election in accordance with regulations prescribed by the Secretary, the basis of partnership property shall be adjusted, in the case of a distribution of property, in the manner provided in § 30354 of this title and, in the case of a transfer of a partnership interest, in the manner provided in § 30363 of this title Such an election shall apply with respect to all distributions of property by the partnership and to all transfers of interests in the partnership during the taxable year with respect to which such election was filed and for all subsequent taxable years. Such election may be revoked by the partnership subject to such limitations as may be provided by regulations prescribed by the Secretary.
History —Jan. 31, 2011, No. 1, § 1075.04, retroactive to Jan. 1, 2011.