reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42B - Act to Transfer the Right to Collect Tax Receivables of Puerto Rico of 2008 (§§ 354 — 354m) › § 354j - Replacement or refund

(a) The Department of the Treasury shall replace: the right to receive payments on account of a specific tax receivable, with the right to receive payments for one (1) or more tax receivables of an equal or greater value; refund the buyer or acquirer an amount equal to the payments on account of the tax receivable, plus the interest earned on said payments, or make a combination of both remedies, if:
(1) The sale or transfer of the right to receive payments on account of tax receivables or any interest thereon should be found void, null or defective in part or in whole, by a final and binding ruling of a competent court;
(2) the sale or transfer of the right to receive payments on account of tax receivables or any interest thereon does not conform to the representations and guarantees of the Department of the Treasury relative to the sale or transfer of such rights or interest;
(3) to the extent that any plan or amnesty accepted or implemented by the Department of the Treasury or the Secretary of the Treasury has the effect of reducing the number of payments on account of tax receivables whose right to receive payments or any interest thereon has been sold or transferred under the provisions of this chapter, or
(4) to the extent that the tax receivable from which issues the right to receive payments has not been collectable within a period of three (3) years from the date of the sale or transfer of the right to receive payments on account of tax receivables or any interest thereon; Provided, That in this specific case, the refund to the acquirer referred to in this subsection shall not apply, but only the right to replace the tax receivable shall indeed apply.
(b) Such a replacement or refund shall constitute the sole and exclusive remedy available to the buyer or acquirer.
(c) The Department of the Treasury shall fulfill the notice requirements established in this chapter when replacing the right to receive payments on account of a specific tax receivable, with the right to receive payments on account of another tax receivable.
History —July 20, 2008, No. 125, § 13.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42B - Act to Transfer the Right to Collect Tax Receivables of Puerto Rico of 2008 (§§ 354 — 354m) › § 354m - Rulemaking authority

The Secretary of the Treasury may establish rules and regulations as necessary for the implementation of this chapter.
History —July 20, 2008, No. 125, § 16.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355 - Definitions

For the purposes of this chapter, the following words shall have the meaning set forth below:
(a) Person and taxpayer. — Shall have the meaning established in each of the applicable laws.
(b) Secretary. — Means the Secretary of the Treasury.
(c) Director. — Means the “Director of Finances,” as said term is defined in §§ 651 et seq. of Title 21.
History —Nov. 15, 2010, No. 172, § 1.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355a - Taxes applicable to this voluntary disclosure program

For purposes of this chapter, the taxes covered under the Voluntary Disclosure Program shall be the following:
(a) Income taxes. — Any person who, on or before December 31, 2009, has received or accumulated gross income taxable under Act No. 120 of October 31, 1994, as amended, known as the “Puerto Rico Internal Revenue Code of 1994”, and who has not filed tax returns or paid the proper amount for taxable years or fiscal year beginning on July 1st, 1993, and ending on or before December 31, 2009, or who, having filed such tax returns, did not disclose the correct amount of income, may file a special return stating the amount of income and the taxable years during which such income was received or accumulated.
(b) Other taxes. — Any person who has had business volume for municipal license fee purposes under §§ 651 et seq. of Title 21, and who has not filed the required business volume declarations or paid the correct amount for municipal license fees to the corresponding municipality, or who, having filed such declarations, did not disclose the actual amount of business volume for taxable years or fiscal year beginning on July 1st, 2003, and ending on or before December 31, 2009, may file a special return stating the correct business volume amount for each fiscal year and pay municipal license fees on the basis of the municipal license fee rate applicable to each of these years.
History —Nov. 15, 2010, No. 172, § 2.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355b - Program benefits

(a) As for the kind of income described in subsection (a) of § 355a of this title, there shall be imposed, charged, and paid a tax of twenty percent (20%) on said income. Taxes on said income shall not be subject to any charges on account of interest, penalties, or surcharges.
(b) As for municipal license fees paid under the provisions of subsection (b) of § 355a of this title, there shall be imposed, charged, and paid a license fee on the basis of the municipal license fee rate applicable to each fiscal year. These license fees shall not be subject to any charges on account of interest, penalties, or surcharges.
Taxpayers who wish to avail themselves of the benefits of this Program must comply with the provisions of this chapter.
History —Nov. 15, 2010, No. 172, § 3.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355c - Conditions

Participation in the Voluntary Disclosure Program shall be subject to meeting the following conditions:
(a) The taxpayer must provide, on or before June 30, 2011, a true, correct, and completed tax return or declaration for each taxable year or fiscal year started on July 1st, 2003, and ending on or before December 31, 2009;
(b) the taxpayer must pay all taxes or license fees corresponding to such tax return(s) or declaration(s) not later than June 30, 2011, and
(c) the taxpayer must meet any other requirement established by the Secretary, including the requirement to submit a written request for the application of the provisions of this chapter.
History —Nov. 15, 2010, No. 172, § 4; Apr. 19, 2011, No. 64, § 1.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355d - Situations in which the voluntary disclosure program shall not apply

Notwithstanding the provisions of § 355b of this title, the Voluntary Disclosure Program shall not apply:
(a) To any matter or matters in which, before the Secretary or the municipality (as the case may be) receives a correct application for the Voluntary Disclosure Program, one or more of the following circumstances are present:
(1) The taxpayer has received a notice that an investigation has been launched;
(2) the taxpayer is currently under investigation;
(3) the taxpayer has received a final or preliminary notice of a deficiency assessment or a notice of proposed or estimated adjustments as a result of an audit, investigation, or otherwise, or
(4) an issue involving income taxes in Puerto Rico or municipal license fees is pending before any court in Puerto Rico or a federal court.
(b) On any matter subject to an assessment or part of an assessment that has been confirmed by any court in Puerto Rico or a federal court.
(c) To any person under any criminal investigation or criminal or civil lawsuit pending before any court in Puerto Rico or a federal court for payment default, delinquency, or fraud in connection with any taxes imposed in Puerto Rico.
(d) To any corporation that is a beneficiary of a tax exemption or reduction under §§ 10641 et seq. of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, §§ 6341 et seq. of Title 23, known as the “Tourism Development Act of 2010”, or any other law of a similar nature.
History —Nov. 15, 2010, No. 172, § 5.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355e - Effect of application for voluntary disclosure program

If a taxpayer chooses to participate in the Voluntary Disclosure Program established in this chapter, such decision shall constitute an express and absolute waiver of all administrative and judicial rights to appeal in connection with such tax responsibility. No tax payment received under this chapter shall be eligible for refund or credit. No penalties or interest paid before the date of effectiveness of this chapter shall be refunded or credited as a result of participation in this Voluntary Disclosure Program.
History —Nov. 15, 2010, No. 172, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355f - General provisions

(a) It is hereby established that upon the execution and approval of a disclosure by the Voluntary Disclosure Unit, the same shall be final and binding with respect to the information so disclosed, except when fraud or deceit or the misrepresentation of a pertinent fact is proven, in which case, eligibility for the Program may be annulled and any matter covered in the disclosure may be reopened.
Furthermore, it is hereby established that the information disclosed under the Program shall be subject to the applicable penalties established in the Code for violations with respect to final agreements.
(b) Intentional fraud or false representation or misrepresentation of a material fact in connection with an application for the Voluntary Disclosure Program shall void such application, as well as any waiver for penalties and interest.
History —Nov. 15, 2010, No. 172, § 7.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355g - Unrelated amounts refund

Participation in the Voluntary Disclosure Program under this chapter does not preclude a taxpayer from claiming a refund or credit for a tax overpayment in connection with a matter not related to the matters which moved the taxpayer to participate in the Voluntary Disclosure Program.
History —Nov. 15, 2010, No. 172, § 8.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355h - Interest rate and penalties increase

(a) If a taxpayer who is eligible for the Voluntary Disclosure Program for a taxable year under this chapter fails to apply for the Program and meet all the requirements of this chapter for said year, and the taxpayer fails to otherwise fulfill his/her tax liability as described in subsection (a) or (b) of § 355a of this title for a period during which the Voluntary Disclosure Program applies pursuant to the provisions of this chapter, then any interest imposed by the Secretary or the municipality (as the case may be) in connection with such responsibility which can be attributed to the failure to report or to having reported a lesser income or business volume, shall be two hundred percent (200%) of the amount that would have been otherwise imposed.
(b) If a taxpayer who is eligible for the Voluntary Disclosure Program for a taxable year under this chapter fails to apply or meet all the requirements of this chapter for said year, and the taxpayer fails to otherwise fulfill his/her tax liability as described in subsection (a) or (b) of § 355a of this title for a period during which the Voluntary Disclosure Program applies pursuant to the provisions of this chapter, then any penalty imposed by the Secretary or the municipality (as the case may be) in connection with such liability which can be attributed to the failure to report or to having reported a lesser income or business volume, shall be two hundred percent (200%) of the amount that would have been otherwise imposed.
History —Nov. 15, 2010, No. 172, § 9.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355i - Treatment of documents filed under this chapter

(a) Document confidentiality. — Any document filed by a taxpayer under the provisions of this chapter shall be a confidential document and be subject to inspection or review only by the Secretary or the Director, or the persons designated by them, as may apply.
(b) For purposes of this chapter, the provisions on tax returns of Subchapter A of the Puerto Rico Internal Revenue Code of 1994 shall apply to tax returns filed under the Voluntary Disclosure Program.
(c) Penalties for disclosure of information. —
(1) It shall be illegal for an official, employee, or person under contract with the Government of Puerto Rico or its municipalities to disclose or make public in any way not provided by law, all or part of the contents of any specific application, tax return, or other document filed in connection with the Program established under this chapter.
(2) Any person who violates the provisions of this section shall be guilty of a misdemeanor, and upon conviction, he/she shall be punished by a fine that shall not exceed two thousand dollars ($2,000) or by imprisonment for a term that shall not exceed six (6) months, or both, at the discretion of the court.
(3) Any official, employee, or person under contract with the Government of Puerto Rico or a municipality, who has been sentenced by a court for having violated the provisions of this section may, in addition to the penalties established in clause (2), may be separated or removed from his office or job, and any contract may be terminated.
History —Nov. 15, 2010, No. 172, § 10.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355j - Rules and regulations

The Secretary shall establish and promulgate such rules and regulations as necessary for the administration of this chapter. The same shall take effect upon notice to the Governor of Puerto Rico. Furthermore, notice of their adoption shall be published in two (2) newspapers of general circulation. These rules and regulations shall be adopted without being subject to the provisions of §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act”.
History —Nov. 15, 2010, No. 172, § 11.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 42C - Taxes for Taxpayers who Participate in Voluntary Disclosure Program (§§ 355 — 355k) › § 355k - Immunity

(a) Grant of immunity. — Taxpayers who comply with the provisions of this chapter shall not be subject to civil or criminal penalties provided in tax laws or the provisions of the Penal Code of Puerto Rico, which establish offenses for tax law violations.
(b) Scope of immunity. — The immunity granted under this section shall be limited to specific declarations filed pursuant to this chapter for the taxable years or periods for which such declarations were filed.
History —Nov. 15, 2010, No. 172, § 12.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 43 - Priority of Liens; Collection of Taxes Generally (§§ 361 — 365) › § 361 - Liens for taxes, mortgage credits, and crop loans

With the exception of the taxes on the encumbered property for five (5) years and for the current year, mortgage credits and crop loans are hereby declared to be liens, having preference over any other charge or lien for taxes or for any other cause.
History —Aug. 24, 1933, No. 14, p. 76, § 1; July 23, 1974, No. 125, Part 1, p. 564, § 7, retroactive to July 1, 1974.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 43 - Priority of Liens; Collection of Taxes Generally (§§ 361 — 365) › § 362 - Preference among mortgage credits and crop loans

The priority or preference among mortgage credits and crop loans shall be the same as now determined by the laws in force.
History —Aug. 24, 1933, No. 14, p. 76, § 2, eff. 90 days after Aug. 24, 1933.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 43 - Priority of Liens; Collection of Taxes Generally (§§ 361 — 365) › § 363 - Retroactive effect as to taxes

It is hereby declared that §§ 361—365 of this title shall have, and [have], a retroactive effect as regards charges and liens for taxes due, other than property taxes, and to which, in accordance with the provisions of laws prior hereto, there has been given the character of a preferred lien.
History —Aug. 24, 1933, No. 14, p. 76, § 3, eff. 90 days after Aug. 24, 1933.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 43 - Priority of Liens; Collection of Taxes Generally (§§ 361 — 365) › § 364 - Penalty for fraud as to preferred tax liens

Any person who, through false and fraudulent representations, executes any simulated document for its registration in the registry of property for the purpose of derogating the preferred right of the Commonwealth of Puerto Rico for income taxes or quotas of workmen’s compensation, shall be guilty of a misdemeanor and, upon conviction, shall be sentenced to imprisonment in jail for from three (3) months to two (2) years.
History —Aug. 24, 1933, No. 14, p. 76, § 4, eff. 90 days after Aug. 24, 1933.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 43 - Priority of Liens; Collection of Taxes Generally (§§ 361 — 365) › § 365 - Collection of taxes generally

The taxes levied by the Income Tax Law of 1924, as amended, excise taxes of all types, including those levied on alcohol and intoxicating beverages, estate and gift taxes, the tax known as the “Victory Tax”, workmen’s compensation assessments, State Insurance Fund premiums, taxes on premiums due and payable in accordance with § 1020 of Title 26, and work accident compensation, as well as surtaxes, penalties and additional interest on said taxes, assessments, premiums or compensations, shall be collected by the Secretary of the Treasury of Puerto Rico through the same garnishment procedures established by law for the collection of property taxes, but the garnishment made for the collection of the aforementioned taxes, assessments, premiums or compensation and their surtaxes, penalties and interest, levied upon the real assets or real rights, shall have preference only from the date of its registration in the registry and solely over the liens and charges subsequent to said date. As soon as any of the said taxes, assessments, premiums or compensations has been levied, and without it being necessary for the term allowed by the laws for payment be permitted to elapse, nor to first proceed to garnish or attempt to garnish personal property, the Secretary of the Treasury of Puerto Rico may order the corresponding internal revenue collector or collectors, to proceed with the garnishment and to make a note in the property registry of the preventive garnishment on real property or real rights registered in favor of the debtor, so as to assure payment of the said tax, assessment, premium or compensation, plus a reasonable amount for the surtaxes, penalties and interest in which the debtor has incurred or may incur. Upon receipt of the notice of garnishment, the property registrar shall make a note thereof on the margin or at the continuation of the registrations of the taxpayer’s properties or real rights; Provided, That if pursuant to this section, the Commonwealth of Puerto Rico is awarded a real property subject to a prior lien, for the collection of said taxes, assessments, premiums or compensation and its surtaxes, the owner of such lien may execute it against said property, making the Commonwealth of Puerto Rico a defendant party in the proceedings that might be filed, for which the Commonwealth of Puerto Rico grants its consent.
History —Aug. 24, 1933, No. 14, p. 76, § 5; May 12, 1943, No. 103, p. 292, § 1; Apr. 26, 1949, No. 115, p. 290, § 1; Sept. 13, 1983, No. 7, p. 368, § 1.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 372 - Bonds, obligations and promissory notes

The bonds, promissory notes, or other obligations as well as fifty percent (50%) of the interest thereon, issued by natural or juridical persons who construct, modernize, or operate hospital units during the time said persons enjoy the benefits granted by this chapter, shall be exempted from all types of taxes, provided that the funds collected by the issuance of bonds, promissory notes, or other obligations issued are used to pay the expenses of the construction, modernization or extension of the hospital unit.
History —June 30, 1968, No. 168, p. 606, § 2; June 23, 1971, No. 76, p. 227, § 1; Jan. 20, 2006, No. 16, § 2.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 373 - Benefits—Requirements

The benefits granted by this chapter are subject to the condition that the natural or juridical person devoted to a hospital unit:
(a) That the stockholders or partners, in the case of a juridical person, do not owe any kind of taxes.
(b) Complies with this chapter and any provision of any applicable tax law.
(c) Submits enclosed with the request mentioned in §374 of this title, an inventory of all real and personal property belonging thereto at the time the request is prepared in the form and manner determined by the Secretary of the Treasury.
(d) Submits to the Secretary of the Treasury not later than the fifteenth (15 th) day of the fourth (4 th) month following the close of its taxable year, a written report along with the corresponding updated financial statements, which clearly indicates the improvement and expansion of facilities and/or services, and any other information as determined through regulations by the Secretary of the Department of the Treasury.
(e) Complies with the requirements established by § 5151(f) of Title 21, in all that may be applicable.
(f) Is a facility certified for the rendering of services, and renders services to Medicare patients. The facility bearing said certification shall lose the benefits of this chapter, if:
(1) The certification is withdrawn for not rendering satisfactory services.
(2) Revocation of the certification is requested.
(3) It requests that the certification not be renewed, or its renewal is not requested.
(g) Does not have the certification to render services to Medicare patients, but shows that the necessary efforts were made to obtain it, and that it could not be obtained for reasons beyond its control.
(h) Submits to the Secretary of Health any information and verification required by § 373a of this title.
History —June 30, 1968, No. 168, p. 606, § 3; June 23, 1971, No. 76, p. 227, § 1; Mar. 3, 1995, No. 27, § 2; July 20, 2005, No. 29, § 2; Jan. 20, 2006, No. 16, § 3; Nov. 17, 2015, No. 187, § 23; Dec. 28, 2016, No. 208, § 6.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 374 - Granting

The Secretary of the Treasury shall grant, upon examination and evaluation of the petition submitted by the interested party and in close collaboration and consultation with the Secretary of Health, the benefits established in this chapter to any natural or juridical person applying therefor if the person encloses with his application a Certificate of Compliance duly issued by the Secretary of Health, as well as any other document required by this chapter, if he finds that the award thereof is necessary and convenient to enhance or modernize the hospital facilities and the medical services rendered to the community in general, while taking into account the provisions of §§ 373 and 373a of this title. Likewise, the Secretary of the Treasury is hereby empowered to revoke any benefits awarded upon an administrative hearing, if he finds that the requirements and eligibility criteria of this chapter and the regulations thereunder have not been met.
History —June 30, 1968, No. 168, p. 606, § 4; June 23, 1971, No. 76, p. 227, § 1; Jan. 20, 2006, No. 16, § 4; Nov. 17, 2015, No. 187, § 25; Dec. 28, 2016, No. 208, § 7.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 375a - Subcontracting

The hospital facility shall be allowed to subcontract any high technology services for the diagnosis and/or treatment of human diseases that entails a substantial investment. Any contracted natural or juridical person may apply for the benefits provided in this chapter; provided, that it is proven to the satisfaction of the Secretary of Health and the Secretary of the Treasury, in accordance with the provisions of §§ 373 and 373a of this title, that such subcontracting is necessary and convenient to enhance the medical services offered by the hospital facility.
It shall be deemed to be necessary and convenient any subcontracting of high technology medical services for the diagnosis and/or treatment of human diseases that because of, but not limited to, the high cost of the equipment, technical personnel, and necessary facilities cannot be defrayed by the hospital facility.
History —June 30, 1968, No. 168, added as § 6 on Mar. 3, 1995, No. 27, § 5; Jan. 20, 2006, No. 16, § 6; Nov. 17, 2015, No. 187, § 27.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 375b - Distribution of dividends or benefits

The stockholders or partners of a hospital facility exempted under the provisions of this chapter, shall be subject to a ten percent (10%) tax on the distribution of dividends or benefits from the net income of the operations of the corporation or partnership covered by the benefits provided in this chapter, which tax shall be in lieu of any other tax, if any, levied by law, and which the corporation or partnership shall deduct and withhold at the source and inform and remit to the Secretary of the Treasury, as established in the Puerto Rico Internal Revenue Code of 1994, Act No. 120 of October 31, 1994.
History —June 30, 1968, No. 168, added as § 7 on Mar. 3, 1995, No. 27, § 5; Jan. 20, 2006, No. 16, § 7.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 376 - Accounting systems

The persons covered by the benefits provided by this chapter shall keep in Puerto Rico an accounting system which clearly shows their gross income, expenses, and other deductions regarding the rendering of medical-hospital services. In addition, they shall include in their income tax return and their property tax returns, in an attached sheet, a profit and loss statement of the operations exempted and a breakdown of all personal property exempted on account of the effects of this chapter.
History —June 30, 1968, No. 168, p. 606, § 6, renumbered as § 8 on Mar. 3, 1995, No. 27, § 5; Jan. 20, 2006, No. 16, § 8.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 377 - Transfer of business

If any person transfers the hospital unit with respect to which he is enjoying the benefits under this chapter, said transfer shall be notified to the Secretary of Health of Puerto Rico and to the Secretary of the Treasury, and the acquirer shall enjoy, if he continues rendering the same services, the benefits provided by this chapter for the remainder of the exemption period; provided, that the Secretary of Health, in consultation with the Secretary of the Treasury, approves said transfer.
History —June 30, 1968, No. 168, p. 606, § 7, renumbered as § 9 on Mar. 3, 1995, No. 27, § 5; Jan. 20, 2006, No. 16, § 9; Nov. 17, 2015, No. 187, § 28.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 377a - Revocation

The Secretary of the Treasury shall revoke the benefits granted by this chapter if the hospital unit enjoying such benefits or any of its members defaults on a payment ninety (90) days after the assessment of any tax debt or deficit, including, but not limited to, income taxes, excise taxes, tax withholdings, payment for professional services, municipal license taxes, or construction excise taxes. Likewise, the Secretary of the Treasury shall revoke the benefits granted by this chapter in the event of default on a tax payment plan that is not settled within ninety (90) days following the notice of such default.
Every revocation issued by the Secretary of the Treasury shall take effect after the first day of the year in which the natural or juridical person owing the taxes, as determined by final and binding judgment, defaults on the payment plan.
None of the provisions herein shall prevent the Secretary of the Treasury from revoking the benefits granted to any operator of a hospital unit who fails to comply or violates any of the provisions of this chapter while availing himself of the benefits granted hereunder.
History —June 30, 1968, No. 168, p. 606, added as § 10 on Jan. 20, 2006, No. 16, § 10; Nov. 17, 2015, No. 187, § 29; Dec. 28, 2016, No. 208, § 9.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 45 - Hospital Facilities Tax Exemption (§§ 371 — 378) › § 378 - Duties of the Secretary, Certificate of Compliance, and rulemaking authority

In the evaluation, analysis, consideration, award, renegotiation, and revision of any incentive or benefit granted under this chapter, the Department of Health and the Secretary thereof shall be required to oversee and ensure that the requirements and governing principles set forth in § 373a of this title are met, and that all other provisions of this chapter are complied with.
The Secretary of the Department of Health shall be responsible for verifying and ensuring that hospital units and the operators thereof meet the requirements of this chapter, particularly those set forth in § 373a of this title. If a hospital unit and the operators thereof fail to meet one or more of the requirements of § 373a of this title due to criteria such as quality, quantity, price, or availability thereof in Puerto Rico, among other factors that, in the judgment of the Secretary of Health, hinder, impair, or prevent the successful operation of the incentivized activity within reasonable parameters, the Secretary of Health, in consultation with the Secretary of the Treasury, may issue a certificate attesting to such fact, exempting the hospital unit and the operators thereof, in whole or in part, from meeting the requirement in question.
If the hospital unit and the operators thereof fail to fully meet the requirements of § 373a of this title, and fail to qualify for any of the exceptions to such provision, the Secretary of Health shall be responsible for establishing a formula, in consultation with the Secretary of the Treasury, that allows for the quantification of the factors set forth in said section, and for the subtraction of the requirement that has not been met from the total percentage of the specific benefit or incentive granted by this chapter, in order to obtain the exact percentage of the benefit or incentive in question.
The Secretary of Health shall be required and responsible for preparing a Certificate of Compliance every two years, once the hospital unit and the operators thereof validate, in the judgment of said official, that the hospital unit has met the requirements set forth in § 373a of this title, and complied with the other provisions of this chapter. Every two years, the Secretary of the Department of Health shall verify the information submitted by the hospital units and the operators thereof so that the Certificate of Compliance is issued not later than on the fifteenth (15 th) day of the second (2 nd) month after the close of the taxable year of the applicant.
History —June 30, 1968, No. 168, p. 606, § 8, renumbered as § 10 by § 5 and amended by § 6 on Mar. 3, 1995, No. 27; renumbered as § 11 and amended on Jan. 20, 2006, No. 16, § 11; Nov. 17, 2015, No. 187, § 30; Dec. 28, 2016, No. 208, § 10.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 381 - Definitions

(a) As used in this chapter, the terms set forth hereinafter shall have the following meaning:
(1) Gross income. — Has the meaning provided in Section 1022 of Act No. 120 of October 31, 1994, known as the “Puerto Rico Internal Revenue Code of 1994”. In the case of life insurance companies, gross income has the meaning contained in Section 1202, while for insurance companies that are not life insurance companies or mutual companies, the gross income is as provided in paragraph (2) of subsection (c) of Section 1207 of the Code.
(2) Taxpayer. — Any corporation or partnership organized as profit-making whose gross income generated on the tax year ending on or before December 31, 2005, is of more than ten million dollars ($10,000,000), except those that have an election under Subchapters K or N of the Code, every corporation organized as non-profit which is exempt pursuant to Section 1101 of the Code and any registered investment company exempt under Section 1361 of the Code.
(3) Taxable net income. — Means net income subject to normal taxation, as defined in subsection (a) of Section 1015, in subsection (c) of Section 1201, in paragraph (2) of subsection (c) of Section 1204, in subsection (a) of Section 1207 of the Code, as the case may be. The definition of taxable net income does not include industrial development income (pursuant to the Puerto Rico Tax Incentives Act of 1987 and the Tax Incentives Act of 1998, [both as] amended), tourism development income (as defined in the Puerto Rico Tourism Incentives Act of 1983 and the Puerto Rico Tourism Development Act of 1993, [both as] amended) nor the income proceeding from the rendering of medical-hospital services (as defined in §§ 371 et seq. of this title).
History —May 16, 2006, No. 98, § 2; July 31, 2006, No. 137, § 1, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 382 - Supertax

A supertax of five percent (5%) shall be imposed on every taxpayer on the taxable net income corresponding to the tax year that ended during natural year 2005. To such ends, the taxpayer shall use as base the income tax return filed for said year. In the case of a taxpayer who has submitted an application for extension for filing the income tax return corresponding to said year and who at the time of filing the return corresponding to the supertax has not filed the income tax return, the taxpayer shall use the estimate of the taxable net income which he/she used to make the computation of his/her tax responsibility for that year, to be subsequently adjusted when he/she files his/her return, if necessary.
History —May 16, 2006, No. 98, § 3; July 31, 2006, No. 137, § 2, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 383 - Concession of credit

(a) Every taxpayer shall be entitled to claim as credit against the income tax, be it the regular tax or the minimum alternative tax, for tax years beginning after July 31, 2006, the total amount paid on account of the supertax. However, the sum taken as credit for each tax year shall not exceed twenty-five percent (25%) of the supertax. The taxpayer may consider said sum when computing the estimated tax provided in Section 1062 of the Code.
History —May 16, 2006, No. 98, § 4; July 31, 2006, No. 137, § 3, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 384 - Special return and payment

(a) The Department of the Treasury shall prepare, on or before June 15, 2006, a special return in which the taxpayer shall report the taxable net income and determine the supertax. Said special return shall be available at the Department of the Treasury as well as on its web page. The return and the corresponding payment are due July 31, 2006.
(b) The provisions of the Code that refer to the failure to file a return, to the failure to pay or to late payment, interest, penalties and surcharges, shall apply regarding the special return and the payment of the supertax.
(c) [Repealed. Act July 31, 2006, No. 137, § 5, retroactive to May 16, 2006.]
History —May 16, 2006, No. 98, §§ 5 and 6; July 31, 2006, No. 137, §§ 4 and 5, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 385 - Creation of a special fund

The funds collected by virtue of the provisions of this chapter shall be deposited into a Special Fund to be used to pay the advances made for the payment of the public servants payroll for the months of May and June of 2006.
The distribution shall be made in the following proportion:
(a) Payroll expenses. —
(1) Department of Education $ 244,700,000
(2) Corrections Administration 30,000,000
(3) Department of Health 10,500,000
(4) Natural and Environmental
Resources Administration 7,700,000
(5) Juvenile Institutions Administration 4,625,518
(6) Mental Health and Addiction
Services Administration 3,197,566
(7) Right to Work Administration 500,000
(8) National Park Company 800,000
(9) Medical Emergency Corps 700,000
(10) Public Service Commission 200,000
(11) Puerto Rico Medical Services
Administration 18,010,444
Payroll Total $ 320,933,528
(b) Operating expenses. —
(1) Puerto Rico Health Insurance
Administration $ 146,300,000
(2) Government Employee and Judiciary
Retirement System Administration
Payment of obligations: pension benefits
and health plans 42,900,000
(3) Department of Health-Payment of
debt with the Puerto Rico Medical
Services Administration 2,825,732
(4) Puerto Rico Police 18,566,484
Operating Expenses Total $ 210,592,216
GRAND TOTAL $ 531,525,744
History —May 16, 2006, No. 98, § 7, renumbered as § 6 on July 31, 2006, No. 137, § 5, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 386 - Advances

The President of the Government Development Bank is hereby authorized to make advances in anticipation of the funds to be collected by virtue of the supertax provided by this chapter, with the purpose of covering the payroll and other operating expenses.
History —May 16, 2006, No. 98, § 8, renumbered as § 7 on July 31, 2006, No. 137, § 5, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 46 - Supertax (§§ 381 — 388) › § 387 - Regulation

The Secretary of the Treasury is hereby authorized to draft any regulations necessary to implement [the provisions of this chapter], including any related special returns and forms, not later than June 15, 2006, without being subject to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act”.
History —May 16, 2006, No. 98, § 9, renumbered as § 8 on July 31, 2006, No. 137, § 5, retroactive to May 16, 2006.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 47 - Tax Reform Commission (§§ 391 — 391f) › § 391 - Creation; composition

There is hereby created a Tax Reform Commission which shall hereafter be referred to as the Commission.
The Commission shall be composed of three persons appointed by the Governor of the Commonwealth of Puerto Rico, one of which shall be designated by the Governor as Chairman.
History —Jan. 30, 1973, J.R. No. 2, p. 538, § 1.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 47 - Tax Reform Commission (§§ 391 — 391f) › § 391a - Functions

The Commission shall prepare a plan for the reform of the tax system of the Commonwealth of Puerto Rico so that it may attain, as far as possible, the following objectives:
(a) Propitiate a fair and equal distribution of the tax burden among the taxpayers of diverse income levels from different occupational categories so that on demanding of each one a proportionate contribution to his economic capacity there is achieved a better and greater redistribution of the income and of the riches.
(b) Provide revenues for the public treasury in such an amount that together with the incomes and resources which may be obtained from other sources they will be sufficient to defray the fulfillment of the fundamental aspirations of the Puerto Rican people in a reasonably short term.
(c) Maintain the incentives for a private economic vigorous activity, especially in the sectors of particular benefit for the country, but being extremely careful of not permitting any preferent tax dealings which lack a clear justification in terms of social benefit.
(d) Increase the efficiency in the levying and collection of taxes and facilitate the payment thereof by the taxpayers.
History —Jan. 30, 1973, J.R. No. 2, p. 538, § 2.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 47 - Tax Reform Commission (§§ 391 — 391f) › § 391b - Powers

In order to obtain the purposes of this chapter, the Commission shall have the following powers:
(1) To use the available resources in the agencies and public instrumentalities, such as the use of information, offices, personnel, equipment, material and other facilities, such agencies and instrumentalities being hereby authorized to place said resources at the disposal of the Commission.
(2) To carry out investigations in Puerto Rico for the purpose of this chapter.
(3) To hold public or private hearings, when deemed necessary. No publicity, or evidence or testimony given in a private hearing before the Commission shall be made public without its consent.
(4) To require the appearance of witnesses and the presentation of books, documents, registries or other evidence in connection with the matters under its consideration, under subpoena. Likewise, the Commission and any of its members may administer oaths and take sworn declarations.
When a witness summoned by the Commission fails to appear or testify or does not present the required evidence, or when he refuses to answer any question, the Chairman may petition the assistance of the Court of First Instance to require the assistance or declaration of the witness or the required production, as the case may be. The Secretary of Justice shall offer the Commission the necessary legal assistance for such purposes.
Once the petition has been filed before the Court of First Instance, the latter shall summon the witness to appear and testify, or to produce the required evidence, or both things, before the Commission, and any disobedience to the summons of the court shall be punished as civil contempt.
The evidence offered by any witness summoned by the Commission shall not be used against such person in any criminal, civil or administrative proceedings.
(5) To receive and administer funds derived from legislative appropriations and from transfer from other agencies and public instrumentalities.
History —Jan. 30, 1973, J.R. No. 2, p. 538, § 3.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 47 - Tax Reform Commission (§§ 391 — 391f) › § 391c - Powers—Of Chairman

(1) To appoint the necessary personnel, which shall not be subject to the provisions of Act No. 345, of May 12, 1947, as amended, known as the “Personnel Act”.
The Chairman shall also designate an Executive Secretary who shall be in charge of directing and supervising all the technical works that may be necessary to carry out for the Commission.
The Executive Secretary, with the approval of the Chairman, shall appoint the additional personnel required to comply with the purposes of the Commission.
(2) To contract specialized services of organizations or the necessary personnel, including officers and employees of the Commonwealth, outside of their working hours, without being subject to the provisions of § 551 of Title 3 or of any other law to the contrary.
History —Jan. 30, 1973, J.R. No. 2, p. 538, § 4.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 2 - Taxation In General (§§ 161 — 393) › Chapter 47 - Tax Reform Commission (§§ 391 — 391f) › § 391d - Per diems; reimbursements

The members shall receive a per diem of fifty (50) dollars for each day in which they carry out functions in connection with the duties imposed by this chapter, provided they are not public officers of the Commonwealth of Puerto Rico, in which event, they shall discharge their functions without receiving any sort of remuneration. However, the members shall be entitled to be reimbursed for the necessary expenses incurred in the fulfillment of their official duties, in accordance with the applicable regulation of the Department of the Treasury.
History —Jan. 30, 1973, J.R. No. 2, p. 538, § 5.