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 953 - Economic Incentives Act For The Development Of Puerto Rico (§§ 10641 — 10673) › Subchapter I - Economic Incentives (§§ 10641 — 10661) › § 10658 - Reports required from tax-exempt businesses and their stockholders or partners

(a) Any tax-exempt business that holds a decree granted under this chapter shall file with the Secretary of the Treasury an income tax return, regardless of the sum of their gross or net income, separate from any other return which they are for other reasons bound to file in connection with industry operations covered under the benefits provided for in this chapter, and pursuant to the Puerto Rico Internal Revenue Code. The Secretary of the Treasury may share with the Industrial Development Company the information so received, provided the confidentiality of said information is protected.
(b) Any stockholder or partner of a tax-exempt business that holds a decree granted under this chapter shall file annually with the Department of the Treasury an income tax return pursuant to the provisions of the Puerto Rico Internal Revenue Code, provided he/she is bound to do so under said Code.
(c) The tax-exempt business that holds a decree granted under this chapter shall be bound to keep in Puerto Rico a separate accounting for its operations, as well as records and files as necessary, in addition to making and submitting the sworn statements and complying with the rules and regulations in effect for due compliance of the purposes of this chapter and which the Secretary of the Treasury may prescribe from time to time in connection with the levying and collection of any type of taxes.
(d) Every tax-exempt business that holds a decree granted under this chapter shall file annually with the Tax Exemption Office, along with a copy to the Secretary of the Treasury and to the Executive Director, not later than thirty (30) days as of the date prescribed by law for filing the corresponding income tax return, including time extensions granted for such a purpose, a report authenticated by the signature of the President, managing partner, or his authorized representative. Said report shall contain an account of data ascertaining compliance with the conditions established in the decree for the taxable year immediately preceding the filing date thereof including, but not limited to, the following: average number of jobs; products manufactured or services rendered; raw material or manufactured products acquired in Puerto Rico; professional, consulting, security and/or maintenance services contracted with professionals or businesses with a presence in Puerto Rico; banking transactions carried out through institutions with a presence in Puerto Rico, and the local economic activity that all of the above represents; as well as any other information that may be required in the form to be adopted for this purpose or as required by regulations. This report shall enclose the fees provided through regulations and these shall be payable by postal money order or cashiers or certified check in the amount of three hundred dollars ($300) to the Secretary of the Treasury. The information furnished in this annual report shall be used for purposes of statistics and economic studies, in accordance with this chapter. Likewise, the Industrial Development Company shall conduct every two (2) years, at the least, an audit to ascertain compliance with the terms and conditions of the decree granted under this chapter.
(e) Any tax-exempt business that holds a decree granted under this chapter shall file, after duly completing the same, the reports that the Commissioner may require.
(f) The Director, after being informed by the agency concerned, may impose an administrative fine of ten thousand (10,000) dollars on any tax-exempt business that holds a decree granted under this chapter which fails to file any of the reports required by the Secretary of the Treasury, the Executive Director, the Director or the Commissioner pursuant to the provisions of subsections (a) through (e) of this section, or which files the same after the deadline. The Tax Exemption Office may bring civil action for collecting said administrative fine before the General Court of First Instance of Puerto Rico, Superior Section, San Juan Part, which shall have exclusive jurisdiction to conduct said proceedings, or which may consider the case for the corresponding sanction pursuant to § 10652(c)(1)(A) of this title. Filing an incomplete report shall be deemed to be a failure to file the same, if the agency concerned notifies the tax-exempt business of any omission on the report required and said tax-exempt business does not submit the missing information within fifteen (15) days as of the date of such notice, or does not reasonably justify why the same is missing.
History —May 28, 2008, No. 73, art. 1, § 18, eff. July 1, 2008; Nov. 17, 2015, No. 187, § 88; Dec. 28, 2016, No. 208, § 23.