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 1004 - Tax Rates (§§ 30061 — 30090) › Subchapter A - Individual Tax (§§ 30061 — 30065) › § 30062 - Alternative basic tax on individuals

(a) Imposition of alternative basic tax on individuals.—
(1) General rule.— There shall be imposed, collected, and paid by every individual for each taxable year, in lieu of any other tax imposed under this part, a tax on the net income subject to alternative basic tax, determined according to the following table:
(A) For taxable years beginning before January 1, 2013 If the net income subject to alternate basic tax is: The tax shall be: From $150,000 but not over $250,000 10 % In excess of $250,000 but not over $500,000 15 % In excess of $500,000 20 % (B) For taxable years beginning after December 31, 2013 If the net income subject to alternate basic tax is: The tax shall be: From $150,000 but not over $250,000 10 % In excess of $250,000 but not over $500,000 15 % In excess of $500,000 24 % plus the distributive share of the special tax on gross income provided in § 30090 of this title, determined in accordance with §§ 30332, 30556, or 30584 of this title, minus the optional basic credit for taxes paid abroad (whenever the same is greater than the regular tax.)
(2) Net income subject to alternative basic tax.— For purposes of this subsection, the term “net income subject to alternate basic tax” shall mean:
(A) The taxpayer’s gross income for the taxable year determined according to the provisions of § 30101 of this title, minus:
(i) The exemptions established in clauses (1), (2), (3)(A), (3)(B), (3)(L), (3)(M), (4)(D), (6), (7), (10), (11), (12), (15), (16), (17), (18), (20), (22), (23), (24), (25), (26), (27), (29), (30), (32), (33), (34), and (35) of subsection (a) of § 30102 of this title.
(ii) the sum of the exempt income received from registered investment companies, in accordance with § 30521 of this title,
(iii) the deductions allowed under §§ 30121(a)(1), 30121(a)(4), 30121(b)(3), 30121(b)(4), 30122(c), 30122(d), 30122(e), 30125(a), 30127, 30133, 30135, and 30436, all of this title, and that part of § 30103(a)(2) of this title related to property taxes, license and permit fees paid during the taxable year, and payment for utilities such as water, electricity, and telephone service; and
(iv) the deductions allowed for personal exemptions and exemption for dependents provided in § 30138 of this title.
(B) For purposes of determining the amount of the net income subject to alternative basic tax shall not apply to income exclusions or exemptions arising from this part, notwithstanding the same are granted under special laws, except for those provided in §§ 10401 et seq. of this title, known as the “Agricultural Tax Incentives Act”, §§ 10641 et seq. of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, or any similar previous or successor law, §§ 10421 et seq. of this title, known as the “Puerto Rico Green Energy Incentives Act”, or any similar previous or successor law, or in §§ 6001 et seq. of Title 23, known as the “Puerto Rico Tourist Development Act of 1993”, or any successor law, including the Puerto Rico Tourist Development Act of 2010, §§ 6341 et seq. of Title 23.
(3) Regular tax.— For purposes of this subsection, the term “regular tax” means the tax liability imposed by § 30061 of this title, minus the credit granted by § 30201 of this title, plus the special taxes provided and listed in §§ 30081—30088 of this title and any other tax at preferred tax rates granted by special laws.
(4) In the case of married individuals living with their spouses and filing separately, and in the case of married individuals living filing jointly who elect the optional tax computation as provided in § 30063 of this title, the levels of net income subject to alternative basic tax provided in clause (1) of this subsection for purposes of the alternative basic tax shall be determine separately for each spouse as if he/she were a single taxpayer. It is further provided that, in these cases, the distributive share of the special tax on gross income provided in clause (1) of this subsection shall be attributed to each spouse on a basis of fifty percent (50%) of the total.
(5) Credit for taxes paid to the United States, possession of the United States and foreign countries.— A credit against the alternative basic tax determined in clause (1) of this subsection, for taxes paid to the United States, possessions of the United States and foreign countries may be claimed as follows:
(A) In general.— The credit against the alternative basic tax paid to the United States, possessions of the United States and foreign countries for any taxable year shall be the credited that would be determined under § 30201(b) of this title for such taxable year, if:
(i) The sum determined under subsection (b)(1) were the tax against which such credit was claimed for purposes of § 30201(b) of this title with respect to such taxable year and all preceding taxable years, and
(ii) § 30201(b) of this title would have applied on the basis of the net income subject to alternative basic tax in lieu of the net income.
(6) Credit for alternative basic tax of previous taxable years.—
(A) Granting of credit.— An amount equal to the credit for alternative basic tax of previous years shall be allowed as a credit against the tax imposed by § 30061 of this title.
(B) Credit for alternative basic tax of previous taxable years.— For purposes of paragraph (A) of this clause, the credit for alternative basic tax of previous years is the excess, if any, of:
(i) The sum of the net alternative basic tax determined for all previous taxable years beginning after December 31, 2008.
(ii) The sum of the net alternative basic tax determined for all such previous taxable years beginning after December 31, 2008.
(C) Limitation.— The credit allowed under this clause for any taxable years shall not exceed the excess, if any, of:
(i) The net regular income, as defined in this subsection, on
(ii) the net alternative basic tax for such taxable year.
(D) Definitions.— For purposes of this clause:
(i) Net alternative basic tax.— The term “net alternative basic tax” means the amount of the net income subject to alternative basic tax for each taxable year multiplied by the applicable alternative basic tax rate, and reduced by the credit against the alternative basic tax paid to the United States, possessions of the United States and foreign countries provided in clause (5) of this subsection.
(ii) Net regular tax.— The term “net regular tax” means the regular tax, as reduced by the credit granted by § 30201 of this title.
History —Jan. 31, 2011, No. 1, § 1021.02, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 8; June 30, 2013, No. 40, § 8; July 11, 2013, No. 58, § 3.