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 1005 - Computation of Taxable Income (§§ 30101 — 30157) › Subchapter C - Deductions (§§ 30121 — 30140) › § 30130 - Charitable gift and other contributions by corporations

(a) In the case of a corporation:
(1) Contributions or gifts shall be deducted from gross income, whose payment has been made during the taxable year to or for the use of:
(A) The Government of Puerto Rico, the United States, any state, territory, or any political subdivision of any of the foregoing, the District of Columbia or any possession of the United States, but exclusively for public purposes; or
(B) An entity described in clauses (1) and (2) of subsection (a) of § 30471 of this title created or organized in Puerto Rico, the United States, or in any possession thereof, or any state or territory organized and operated exclusively for the purposes described therein, but in the case of a contribution or gift to a trust, chest, fund, or foundation only if it is to be used within Puerto Rico or the United States or any of its possessions exclusively for such purposes, provided that no part of the net earnings of which inures to the benefit of any private shareholder or individual. For denial of certain deductions for charitable contributions or gifts, otherwise admissible under this clause, see §§ 30412(e) and 30486 of this title; or
(C) a post or organization of war veterans, or an auxiliary unit of, or trust or foundation for, if any such post or organization unit, trust or foundation is organized in Puerto Rico, the United States, or any of its possessions, provided that no part of the net earnings of which inures to the benefit of any private shareholder or particular individual; or
(D) other entities listed in § 30135(a)(3)(C) of this title; up to an amount that shall not exceed ten percent (10%) of the net income of the taxpayer computed without the benefits of this subsection.
(2) In the event that a corporation makes contributions or gifts in excess of the ten percent (10%) allowed under this subsection, the corporation may carry forward such excess to each of the five (5) succeeding taxable years, in order of time, but the deduction allowed as donation under this subsection for each one of the five (5) succeeding taxable years shall not exceed ten percent (10%) of the net income of the taxpayer determined without the benefits of this subsection.
(3) The contributions or gifts provided in this subsection shall be allowable as a deduction only if verified under the rules and regulations prescribed by the Secretary.
(4) In the case of a corporation or partnership reporting its taxable income on the accrual basis, at the option of the taxpayer, any payment of the contribution made after the close of the taxable year and on or before the fifteenth (15th) day of the fourth (4th) month following the close of the taxable year, shall be treated for purposes of this subsection, as paid during the taxable year if the Board of Directors or partners authorized said contribution or gift during such year. The option may be made only at the time of the filing of the return for the taxable year, and shall be signified in such manner as the Secretary shall by regulations prescribe.
(b) In the case of a corporation making contributions or gifts to any municipality, of historical or cultural value, as certified by the Institute of Puerto Rican Culture or the cultural center of each municipality, or that makes possible the carrying out of work with historical or cultural value, when the amount of the contribution or gift is fifty thousand dollars ($50,000) or more and it is done for the celebration of the centennial of the establishment of said municipalities, the contribution deduction under this subsection shall be allowed to the extent of the value of the donation, and will not be subject to the limits provided in subsection (a). The Secretary shall establish by regulations the requirements, conditions, and terms for the corporation’s or partnership’s claiming of this deduction.
History —Jan. 31, 2011, No. 1, § 1033.10, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 31.