2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART III - Other Financial Institutions (§§ 551 — 1390) › Chapter 66 - Cooperative Bank of Puerto Rico (§§ 751 — 779c) › § 766 - Tax exemptions

(a) General rule. — Except as provided in subsection (b) of this section:
(1) It is hereby declared that the Cooperative Bank complies with a purpose consistent with the public policy of the Commonwealth of Puerto Rico in matters related to the cooperative movement. Therefore, the Bank, its operational and financial subsidiaries and affiliates, as well as the revenues from all its activities or operations, all its assets, capital, reserves and surpluses shall be exempt of any type of taxation on income and property, excise taxes, licenses or any other tax levied or to be levied by the Commonwealth of Puerto Rico or any of its political subdivisions.
(2) All shares and securities issued by the Bank and by any of its operational and financial subsidiaries and affiliates shall be exempt, both in their total value as well as in the dividends and interest paid pursuant to the same, from any type of taxes on income, property, excise taxes, licenses or any other tax levied or to be levied by the Commonwealth of Puerto Rico or any of its political subdivisions.
(3) Furthermore, the Bank and its operational and financial subsidiaries and affiliates shall be exempt from the payment of fees, excise taxes or Commonwealth or municipal tariffs or duties, including the payment of fees for licenses, patents, permits and registers, and from the payment of charges, fees, internal revenue stamps and vouchers relative to the issue of all types of public and private documents, from the payment of charges, fees, internal revenue stamps and vouchers relative to their registration in the Property Registry or any other public registry or government office and from the payment of charges, fees, internal revenue stamps and vouchers relative to certifications issued by said registries or by any other government office. The Bank and its operational and financial subsidiaries and affiliates shall be also exempt from the payment of charges, fees, internal revenue stamps and vouchers and excise taxes, tariffs and duties required by the courts of Puerto Rico or by any agency, instrumentality or public corporation of the Commonwealth of Puerto Rico or any of its political subdivisions.
(4) The obligations incurred by the Bank and its operational and financial subsidiaries and affiliates evidenced by instruments or securities, including but not limited to notes, capital obligations, commercial paper, bonds, certificates of deposit or other certificates, investment securities, promissory notes or any other evidence of debt or obligations, be they secured by collateral or not, and the interest or dividends paid on the same shall be exempt from the payment of any type of taxes on income and property, excise tax, licenses or any tax levied or to be levied by the Commonwealth of Puerto Rico or any of its political subdivisions.
(5) The exemptions granted under this chapter to the operational and financial subsidiaries and affiliates of the Bank, shall apply while said operational and financial subsidiaries and affiliates are subject to the control of the Bank.
(b) Taxable years beginning after December 31, 2008, and before January 1, 2012. — Notwithstanding the provisions of §§ 8401—8697 of Title 13, and this chapter, during each of the taxable years beginning after December 31, 2008, and before January 1, 2012, the Cooperative Bank of Puerto Rico and its subsidiaries and affiliates shall be subject to a special five-percent (5%) tax on the amount of their net income for the taxable year, to be computed in accordance with the provisions of §§ 8401—8697 of Title 13, regardless of the provisions of § 8501 of Title 13 or this chapter, but only to the extent that aid net income exceeds two hundred fifty thousand dollars ($250,000). Unless otherwise provided by the Secretary of the Treasury by regulation, circular letter or other administrative determination or communication of a general nature, such tax shall be reported, paid, and collected in such form and manner as established in §§ 8401—8697 of Title 13, for corporations to pay general income taxes.
History —June 21, 1966, No. 88, p. 257, § 16; Sept. 25, 1992, No. 79, § 8; Aug. 17, 2001, No. 115, § 2; Aug. 9, 2008, No. 237, § 2; Mar. 9, 2009, No. 7, § 28A; July 10, 2009, No. 37, § 21.