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 1004 - Tax Rates (§§ 30061 — 30090) › Subchapter A - Individual Tax (§§ 30061 — 30065) › § 30064 - Option to file the income tax return under the provisions of the Internal Revenue Code of 1994, as amended

(a) Every taxpayer, who is an individual, shall have the option to compute his/her tax liability and file the tax return pertaining to his/her first taxable year beginning after December 31, 2010, and before January 1, 2012 and during the following four (4) taxable years, pursuant to the appropriate provisions of Act No. 120-1994, as amended, known as the “Internal Revenue Code of 1994,” that are in effect as of December 31, 2010.
(b) The taxpayer shall elect the option provided in this section by filing the income tax return for the first taxable year beginning after December 31, 2010, and before January 1, 2012. Once such option is elected, the same shall be final and binding for the taxable year in which he/she made such election and for each of the following four years. Notwithstanding the foregoing, a taxpayer who has made an election under subsection (a) above, may elect to determine his/her tax liability for the first taxable year beginning after December 31, 2012, under the provisions of this Code. Once the election herein allowed is made, it shall be final and binding for such taxable year and for all taxable years thereafter.
(c) Individuals who are partners in a partnership or members of a limited liability company subject to the provisions of §§ 30321-30376 et seq. of this title.-Any individual who has elected the option provided in subsection (a) of this section and is, in turn, a partner in a partnership or a member of a limited liability company subject to the provisions of §§ 30321-30376 et seq. of this title and who, during the five (5)-year term established in such subsection (a), has included as income under the Puerto Rico Internal Revenue Code of 1994, as amended, only the distributions received from such partnership or limited liability company, such partner or member shall include as ordinary income for the first year to which the provisions of this Code apply, and pay the taxes, subject to the maximum regular tax rate applicable to individuals provided in § 30061 of this title for the taxable year immediately preceding, for the excess of:
(1) The amount of his/her distributive share in the items of income and expenses of such partnership or limited liability company for each of the taxable years covered by the option under subsection (a); over
(2) the amount of the distributions made by such partnership or limited liability company for each of said taxable years, which have been included as income by the taxpayer.
(d) Any individual who has made an election under subsection (a) of this section and is required to pay an estimated tax shall consider, in computing his/her estimated tax, the special tax on gross income imposed by this Code.
History —Jan. 31, 2011, No. 1, § 1021.04, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 10; June 30, 2013, No. 40, § 9.