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 1013 - Other Special Taxpayers (§§ 30501 — 30622) › Subchapter A - Insurance Companies (§§ 30501 — 30512) › § 30504 - Taxation on foreign life insurance companies

(a) Tax imposed.— There shall be imposed, collected, and paid for each taxable year, a tax on net income subject to normal tax and on net income subject to additional tax of all foreign life insurance companies, at the same rates as set forth in §§ 30071(b), 30072(b) of this title.
(b) Taxation on amount equivalent to dividend.— In addition to the tax imposed by subsection (a), there shall be imposed, collected, and paid for each taxable year by all foreign life insurance companies, the tax provided in § 30442 of this title. The Secretary shall establish through regulation the rules to be followed in the application of § 30442 of this title on foreign life insurance companies subject to taxation under subsection (a).
(c) For purposes of this section and §§ 30505 and 30506 of this title, the following terms shall have the meaning provided in this subsection:
(1) Foreign life insurance company shall mean any life insurance company organized:
(A) Under the laws of the United States of America, any of its states, territories, and possessions, or the District of Columbia, which qualifies as such life insurance company under the provisions of Part I, Subchapter L of the United States Internal Revenue Code, or
(B) Under the laws of any other country, which engages in the business of life insurance in Puerto Rico and which would qualify as a life insurance company under § 30501(a) of this title, if it were not for the fact of it having been organized outside Puerto Rico.
(2) Foreign life insurance net income subject to normal tax shall mean the amount resulting after applying to the taxable income of the life insurance company a fraction whose numerator shall be the sum of direct premiums written for life, accident, and health insurance and direct premiums, as annuity considerations apportioned to Puerto Rico, as the same are reported in the annual statement required by § 331 of Title 26; and the denominator of which shall be the sum of all the direct premiums written for life, accident, and health insurance and direct premiums, as annuity considerations written everywhere by the foreign life insurance company, as the same are reported in the aforementioned annual statement.
(3) Foreign life insurance company net income subject to surtax shall mean the net income subject to normal tax of a foreign life insurance company as defined in clause (2), minus the credit provided in § 30072(d) of this title.
(4) The taxable income of a foreign life insurance company subject to the provisions of clause (1)(A) shall mean the taxable income of the life insurance company determined in accordance with the provisions of Part I, Subchapter L of the United States Internal Revenue Code.
(5) The taxable income of a foreign life insurance company subject to the provisions of clause (1)(B) shall mean the taxable income of the life insurance company determined in accordance with the provisions of the tax laws in its country of origin or organization. If these companies are not subject to taxation in their country of origin or organization on all of their income from all sources, they shall be subject to the rules of § 30431(b) of this title and not to this section.
(6) United States of America Internal Revenue Code shall mean the United States Internal Revenue Code, as amended.
(d) Alternative minimum tax.— Foreign life insurance companies shall be subject to the provisions related to the alternative minimum tax for corporations.
History —Jan. 31, 2011, No. 1, § 1111.04, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 116.