2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 3 - General Provisions (§§ 621-639 — 1100a) › Chapter 71 - Municipal License Taxes (§§ 621-639 — 652y) › § 651f - Computation of license tax

(a) The municipal license tax levied by authority of §§ 651–652y of this title shall be computed by the person subject to the tax, based on the volume of business concluded in the accounting year within the immediately preceding calendar year. The accounting year shall be the same as that used to prepare and render the income tax return to the Department of the Treasury. If no income tax return is rendered, then the calendar year shall be the accounting year.
In those cases in which a person does not perform any industrial or business activity during the entire immediately-preceding calendar or fiscal year, the municipal license tax shall be computed by taking as a basis the volume of business for the period in which he/she performed industrial or business activities, raised to an annual basis.
Those taxpayers whose accounting years end between January 1 and March 15 and have declared their volume of business for 1991-92 using the accounting year ending in the 1991 calendar year, shall comply with the provisions contained in § 56 of this act to declare their volume of business for the 1992-93 and subsequent fiscal years.
In the case of cable or satellite television businesses, the volume of business shall be the income collected from billing and collection of cable or satellite television services, installation, and lease or sale of related equipment to its provided subscribers. The value of the license tax shall be distributed among the municipalities according to the volume of business generated in each municipality where it has subscribers.
(b) Credits against license tax.— In the case of financial businesses or industries with branches outside of Puerto Rico that pay taxes of the same kind in another jurisdiction, shall be granted a credit which shall be determined as follows:
(1) Determine the percentage represented by the gross income earned outside of Puerto Rico with regard to the total gross income of the industry or business which is subject to taxes in Puerto Rico.
(2) Apply the resulting percentage to the total amount of taxes of equal nature paid outside of Puerto Rico attributable to the income declared in Puerto Rico.
(3) The product of said application shall be the credit against the total amount of the municipal license tax to be paid in Puerto Rico.
To claim said credit, the person subject to the payment of the municipal license tax shall include a certified copy of the return filed in the jurisdiction where payment was made, or attesting evidence that said tax was paid in the other jurisdiction.
In the case of cable T.V. businesses, the volume of business shall be the income obtained from billing and collecting for communication services, and from the sale and installation of equipment related to the services they provide to their subscribers. The amount of the license tax shall be distributed among the municipalities according to the volume of business generated in each municipality where they have subscribers.
History —July 10, 1974, No. 113, Part 1, p. 371, § 7; June 18, 1976, No. 10, p. 671; Aug. 30, 1991, No. 82, § 4; Nov. 17, 1992, No. 93, § 3; Apr. 14, 1996, No. 23, § 2; June 24, 1998, No. 96, § 3.