2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 15 - Puerto Rico Industrial Incentives Generally (§§ 10001 — 10855) › PART III - Other Tax Incentives (§§ 10401 — 10855) › Chapter 941 - Agriculture Tax Incentives (§§ 10401 — 10410) › § 10404 - Duties of the Secretary of the Department of Agriculture, Certificate of Compliance

In the evaluation, analysis, consideration, award, renegotiation, and revision of any incentives or benefits granted under this chapter, the Department of Agriculture and the Secretary thereof shall be required to oversee and ensure compliance with the governing principles set forth in § 10401a of this title, as well as with all other provisions of this chapter.
The Secretary of Agriculture shall be responsible for verifying and ensuring that agricultural businesses meet the requirements established in this chapter, particularly those set forth in § 10401a of this title. If the agricultural business fails to meet one or more of the requirements established in § 10401a of this title due to criteria such as quality, quantity, price, or availability in Puerto Rico, among other criteria that, in the judgment of the Secretary of Agriculture hinder, impair, or prevent the successful operation of the incentivized activity within reasonable parameters, the Secretary of Agriculture may issue a certificate attesting to such fact, exempting the agricultural business, in whole or in part, from meeting the requirement in question.
If the agricultural business fails to fully meet the requirements of § 10401a of this title, and fails to qualify for any of the exceptions to such provision, the Secretary of Agriculture shall be responsible for establishing a formula 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 the Department of Agriculture shall be required and responsible for preparing a Certificate of Compliance every two years, once the agricultural businesses validate, in the judgment of said official, that they have met the requirements set forth in § 10401a of this title, and complied with all other provisions of this chapter. The Certificate shall state that the bona fide farmer is engaged in the exploitation or operation of an activity that qualifies as an agricultural business. Every two years, the Secretary of Agriculture shall verify the information submitted by agricultural businesses 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.
The Certificate of Compliance shall include, in turn, the following information regarding the agricultural business: the name of the business, the cadastre number of the property or properties connected to the business; the merchant registration number; the account connected to the business as required in the Puerto Rico Internal Revenue Code of 2011; the employer identification number; and the information required by §§ 1411 et seq. of Title 23, better known as the “Fiscal Information and Permit Control Act”.
The Certificate of Compliance shall be issued by the Secretary of the Department of Agriculture through the Interagency Validation Portal for the Granting of Incentives for the Economic Development of Puerto Rico, to the agencies, public corporations and municipalities responsible for awarding the benefits or incentives established in this chapter. However, during the period in which the Portal is still not operating, it shall be the duty of the Secretary to issue a Certificate of Compliance to the agencies, public corporations, and municipalities responsible for awarding the benefits or incentives established in this chapter following the ordinary procedure. The filing of the Certificate of Compliance by an agricultural business shall be an essential requirement for the agency, public corporation, or municipality to grant the benefit or incentive provided for in this chapter.
Actions taken by the Secretary of the Department of the Treasury, the Executive Director of the Municipal Revenues Collection Center (CRIM), or any other government official or body, or public corporation concerned in connection with the qualification process for the granting of the benefits or incentives under this chapter shall be limited to the taxation aspects of the granting of the benefit or incentive in question, upon the issuance of a valid Certificate of Compliance, as provided in this section. The Secretary of Agriculture shall be responsible, first and foremost, for overseeing eligibility under any and all provisions of this chapter. However, the Secretary of the Department of the Treasury, the Executive Director of the Municipal Revenues Collection Center (CRIM), or any other government official or body, or public corporation concerned with any of the benefits or incentives granted under this chapter may contact the applicant and Secretary should further information be needed to validate the data on the Certificate of Compliance, and shall notify and request the applicant to supply such information in order to rectify the situation. The Secretary of the Department of the Treasury or the Executive Director of the Municipal Revenues Collection Center (CRIM) may deny any tax incentives or benefits requested if, in their judgment, the information requested has not been supplied. Moreover, the provisions of this chapter shall not preclude in any manner the power conferred to the Secretary of the Treasury under § 33202 of this title, known as the “Puerto Rico Internal Revenue Code of 2011”, and, if necessary, the power to revoke any incentives previously granted by virtue of a Certificate of Compliance, in accordance with the corresponding act; or the power to refer the case to the pertinent agency or public corporation for the corresponding action.
History —Dec. 1, 1995, No. 225, § 5; Apr. 8, 1997, No. 8, § 2; Sept. 6, 2000, No. 384, § 1; Nov. 17, 2015, No. 187, § 52; Dec. 28, 2016, No. 208, § 15.