2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 954 - Real Property Market Stimulus Act (§§ 10691 — 10700) › § 10693 - Special tax to any individual, succession, corporation, partnership or trust on net long-term capital gain

(a) Gain from the sale of qualified property effected after September 1, 2010, but on or before October 31, 2011.—
(1) The total net long-term capital gain generated from the sale effected after September 1, 2010, but on or before October 31, 2011, of a qualified property shall be fully exempt from Puerto Rico income taxes, including the alternate basic tax and the alternative minimum tax provided in the Code.
(b) Gain from the sale of property acquired after September 1, 2010, but on or before October 31, 2011.—
(1) The total net long-term capital gain generated from the sale of a newly-built property acquired by the seller carried out after September 1, 2010, but on or before October 31, 2011, shall be fully exempt from Puerto Rico income taxes, including the alternate basic tax and the alternative minimum tax provided in the Code.
(2) The net long-term capital gain generated from the sale of a qualified property acquired by the seller carried out after September 1, 2010, but on or before October 31, 2011, shall have fifty percent (50%) exemption from Puerto Rico’s income taxes, including the alternate basic tax and the alternative minimum tax provided in the Code. The remainder fifty percent (50%) of the net long-term capital gain shall be subject to taxation, in accordance with the applicable provisions of the Code.
(3) Certification of the Department of the Treasury.— Once the informative return related to the sale of a newly-built or qualified property is received, the Department of the Treasury shall certify in writing on or before thirty (30) days to the acquirer that the real property is a newly-built or qualified property and that the net long-term capital gain generated from the sale of such property shall be exempt, as applicable, from Puerto Rico income taxes. The taxpayer shall include in the income tax return corresponding to the year of the sale a copy of the certification issued by the Department of the Treasury.
(c) General provisions applicable to this section.—
(1) In order to be entitled to claim the net long-term capital gain exemption provided in this section, the taxpayer shall declare as totally or partially exempt, as the case may be, such gain in the income tax return corresponding to the year in which such gain was generated. Moreover, in the case of a net long- term capital gain generated from the sale of a newly-built or qualified property, the taxpayer shall include in the income tax return corresponding to the year of the sale a copy of the certification issued by the Department of the Treasury, pursuant to the provisions of this section.
(2) The benefits provided in this chapter shall only be available to the first seller and the corresponding first purchaser of each newly-built or qualified property unit, and shall not apply with respect to any purchaser in any subsequent transfer, even when it occurs before October 31, 2011.
(3) The payments related to the sale of a real property whose net long-term capital gain is subject to the exemption provided in this section, shall not be subject to withholding of income taxes at source.
(4) The benefits of this section shall apply to eligible taxpayers regardless of whether they are residents or non-residents of Puerto Rico.
(5) The benefits of this section shall not be applicable insofar as the assignor of the real property covered hereunder is a person related to the acquirer of such real property. For these purposes, it shall be deemed that the assignor of the real property is a “related person” if the assignor and the acquirer are persons between which losses would not be allowed under § 8424(b) of this title.
History —Sept. 2, 2010, No. 132, § 1.3; July 5, 2011, No. 115, § 3.