2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART IV - Excise Taxes (§§ 31601 — 31771) › Chapter 1032 - Taxes on Goods (§§ 31621 — 31634) › § 31629 - Vessels and heavy equipment

(a) An excise tax of seven percent (7%) shall be imposed, collected, and paid on every type of ship and every type of heavy equipment that is introduced from abroad or manufactured in Puerto Rico.
(1) Ships.— In the case of ships, the excise tax shall be imposed on the suggested consumer sales price. The maximum excise tax amount to be imposed and collected per ship under this section shall not exceed ten thousand dollars ($10,000.00).
(2) Heavy equipment.— In the case of heavy equipment, the excise tax shall be imposed on the price in Puerto Rico. The maximum excise tax amount to be imposed and collected per unit of heavy equipment under this section shall not exceed twenty five thousand dollars ($25,000).
(b) Notwithstanding the provisions of § 31741(b) of this title, in the case of ships and heavy equipment introduced to Puerto Rico by bonded authorized dealers, the tax shall be paid within fifteen (15) days following the time of sale, or within fifteen (15) days following the time at which the dealer permitted the use of said ship or unit of heavy equipment, whichever happens first.
(c) After the retail sale of a ship or unit of heavy equipment has been carried out, the retailer of the ship or unit of heavy equipment (or dealer), importer or distributor, shall submit to the Department the corresponding bill of sale required by the Secretary, along with any other document that the Secretary requires and which demonstrates that the sale took place and that the appropriate excise tax was paid in full. In the case of ships, what was provided in the preceding sentence shall be required before the Secretary issues to said ship retailer (or dealer), importer or distributor, the excise tax payment certification that enables the ship to be registered in the Ship Registry of the Office of the Navigation Commissioner.
(d) Vessels and heavy equipment in stock on the effective date of the levied excise tax provided in this section shall be deemed to be introduced to Puerto Rico on said date. The excise tax declaration required by § 31630 of this title shall be filed on said date of introduction. Notwithstanding the foregoing and the provisions of § 31741 of this title:
(1) In the case of ships and heavy equipment in stock and introduced by bonded authorized dealers, the payment of the tax shall be subject to the provisions of subsection (b) of this section. The Secretary shall establish through regulations, circular letter, or any other administrative determination of a general nature, the norms necessary for the application of the provisions in this section, and
(2) in the case of ships and heavy equipment in stock and introduced by authorized dealers that are not bonded, the payment date shall expire sixty (60) days after the effective date of the imposed excise tax, insofar as said dealer does not pay the bond within that period.
(e) Every ship and every unit of heavy equipment subject to the provisions of this section shall be exempt from the sales and use taxes established in §§ 32001 et seq. of this title.
(f) Exemption on nonresident ships.—
(1) Ships with foreign registration or documented by the United States Coast Guard shall be exempt from the excise tax provided by this section if they are acquired by a Puerto Rico nonresident, who has the title and ownership of said ship, and who does not engage in the sale of ships in Puerto Rico.
(2) For purposes of this subsection, a ship acquired, or the title or ownership or both of which is held by a nonresident corporation, limited liability society or company shall not be considered eligible for the tax exemption provided in this section if one or more Puerto Rico residents jointly own, directly or indirectly, fifty percent (50%) or more of the stocks or shares of the entity holding the title or ownership of said ship. Furthermore, for purposes of subsection (a) of this section, the exemption shall apply to the ship as well as to its furnishings (“bare boat”), but not to merchandise inside the ship.
(3) Stocks and shares considered as constructively owned.— For purposes of this section, the following stocks and shares in a foreign corporation or partnership or nonresident limited liability company, with the title and ownership of a ship shall be considered as constructively owned by Puerto Rico residents.
(A) Stocks and shares of said nonresident corporation or partnership or limited liability company owned by a resident corporation, limited liability society or company (shareholding company) of Puerto Rico, if the shareholding corporation or partnership owns fifty percent (50%) or more of the value of the stocks or shares of the nonresident corporation or partnership or limited liability company holding the title and ownership of the ship, and
(B) stocks and shares owned by one or more Puerto Rico residents and who jointly own fifty percent (50%) or more of the value of the stocks or shares of the shareholding corporation. For these purposes, any stocks or shares in corporations or partnerships owned directly or indirectly through one or more corporations or partnerships, tiered corporations or partnerships described in this clause shall be treated as owned by a Puerto Rico resident.
(4) Nonresident ships.— For purposes of this subsection, the term “nonresident ships” means ships with a foreign registration or documented by the United States Coast Guard.
(g) The Secretary shall establish, through regulations, circular letter or administrative determination of a general nature, a voluntary disclosure program for ships and heavy equipment in which he/she shall stipulate the rules applicable to them under said program, including provisions for their treatment under the provisions of this section.
History —Jan. 31, 2011, No. 1, § 3020.09, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 131.