reglab/statecodes huggingface dataset:
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 B - Tax on Corporations (§§ 30071 — 30076) › § 30071 - Normal tax on corporations

(a) Definition of net income subject to normal tax. — For purposes of this part, the term “net income subject to normal tax”, when used in respect to corporations, shall mean the net income minus the credits for dividends received as provided in § 30139(a) of this title. In the case of a foreign corporation engaged in the operation of a trade or business, the term “net income subject to normal tax” shall mean the net income actually related to the operation of a trade or business in Puerto Rico.
(b) Imposition of tax. — There shall be imposed, collected and paid for each taxable year on the net income subject to normal tax of every regular corporation a tax of twenty percent (20%) of the net income subject to normal tax.
(c) Regular corporation —Definition. — For purposes of this section and § 30072 of this title, the term “regular corporation” means any corporation other than:
(1) A corporation subject to the tax imposed by §§ 30501—30512 of this title,
(2) a special employee-owned corporation subject to the provisions of §§ 30531—30550 of this title,
(3) a special partnership subject to the provisions of §§ 30551—30578 of this title,
(4) a corporation of individuals subject to the provisions of §§ 30581—30590 of this title,
(5) a foreign corporation not engaged in the operations of a trade or business in Puerto Rico, subject to the tax imposed by § 30441 of this title, or
(6) a limited liability company subject to the provisions of §§ 30321 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 1022.01, retroactive to Jan. 1, 2011.
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 C - Preferred Rate Taxes (§§ 30081 — 30090) › § 30081 - Special surtax on separate accounts

(a) A tax shall be imposed and collected, in addition to other taxes imposed by law to life insurance companies, in the amount of point ten percent (.10%) on the total amount of assets at the close of its taxable year in the separate accounts maintained by said life insurance company established under the terms and conditions provided in §§ 1363—1369 of Title 26, as shown on the annual report required from the life insurance company under the Insurance Code of Puerto Rico.
(b) The tax imposed by this section for any taxable year shall be reported and be payable in its entirety by the life insurance company not later than the due date prescribed by this part to file its income tax return for that taxable year.
History —Jan. 31, 2011, No. 1, § 1023.01, retroactive to Jan. 1, 2011.
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 C - Preferred Rate Taxes (§§ 30081 — 30090) › § 30082 - Special tax to individuals, estates, and trusts on net long-term capital gains

(a) Ten percent (10%) tax rate. — Any individual, estate, or trust shall pay, in lieu of any other taxes imposed by this part, a ten percent (10%) tax on the excess amount of any net long-term capital gain on any net short-term capital loss, as said terms are defined in § 30141 of the this title, or may opt to pay taxes according to the normal tax rates, whichever is of greater benefit to the taxpayer.
(b) Form of payment. — The tax imposed by subsection (a) shall be paid as provided in §§ 30259 and 30260 of this title.
History —Jan. 31, 2011, No. 1, § 1023.02, retroactive to Jan. 1, 2011.
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 C - Preferred Rate Taxes (§§ 30081 — 30090) › § 30083 - Alternative tax to corporations on net long-term capital gains

(a) If, for any taxable year, the net long-term capital gain of any taxable year exceeds the short-term capital loss, there shall be imposed, collected and paid, in lieu of the tax imposed by §§ 30071, 30072, and 30073 of this title, a tax determined as follows, but solely if such tax were lower that the tax imposed by said sections:
(1) Firstly, a partial tax shall be computed on the net income without including the total amount of the excess of the net capital gain at the rate and in the manner as if this section did not exist.
(2) Then, an amount equal to fifteen percent (15%) of such excess shall be determined.
(3) The total tax shall be the partial tax computed under clause (1), plus the amount computed under clause (2).
History —Jan. 31, 2011, No. 1, § 1023.03, retroactive to Jan. 1, 2011.
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 C - Preferred Rate Taxes (§§ 30081 — 30090) › § 30088 - Special tax on variable annuities in separate accounts

(a) Imposition of tax.— When filing his/her income tax return, the taxpayer may elect to treat the amount of the lump sum includible in the gross income as a long-term capital gain.
(b) Definitions.—
(1) Lump sum.— For the sole purposes of this section, the term “lump sum” means amounts payable during the same taxable year under a variable annuity contract issued by an eligible insurance company.
(2) Eligible insurance company.— For the sole purposes of this section, the term “eligible insurance company” means an insurance company organized under the laws of the Government of Puerto Rico and authorized as such by the Insurance Commissioner of Puerto Rico, or a foreign insurance company duly authorized to conduct insurance business by the Insurance Commissioner of Puerto Rico, when not less than eighty percent (80%) of its gross income derived during the period of three (3) taxable years ending at the close of the taxable year prior to the date of payment of the annuity or eligible periodic payment that constitutes income that is actually related to the operation of a trade or business in Puerto Rico.
(3) Variable annuity contract.— For the sole purposes of this section, the term “variable annuity contract” means an annuity insurance contract or an endowment insurance contract, the funds of which were deposited in separate accounts subject to the special additional imposed under § 30081 of this title.
History —Jan. 31, 2011, No. 1, § 1023.08, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 16.
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 C - Preferred Rate Taxes (§§ 30081 — 30090) › § 30089 - Special tax on total distributions of certain employees’ trust

(a) Imposition of tax.-When filing his/her income tax return, the taxpayer may elect to treat the amount of the total distribution that would be considered a long-term capital gain under § 30391(b)(1) of this title, subject to the special tax imposed in such section, or to pay taxes for such income as an ordinary income, whichever is more beneficial for the taxpayer.
History —Jan. 31, 2011, No. 1, added as § 1023.09 on Dec. 10, 2011, No. 232, § 17.
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 A - Determination of Net Income, General Concepts (§§ 30101 — 30105) › § 30103 - Adjusted gross income

(a) Definition.— “Adjusted gross income”’ means the gross income as defined in § 30101 of this title minus:
(1) Exemptions.— The exemptions provided in § 30102 of of this title.
(2) Trade or business deductions.— The deductions allowed under §§ 30121 and 30122 of this title, which are attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist of the performance of services by the taxpayer as an employee.
(3) Interest and other expenses paid for the purchase of investments.— Expenses related to investments in deposit accounts or certificates of deposit or investment accounts, bonds, notes or other liabilities whose sum has been invested in such investments, up to the amount of the income derived therefrom, but there shall not be [allowed as a] deduction the sum of the interest and expenses on investment, which are attributable to investments whose income is exempt from income taxes under the provisions of the clauses (5) and (10) of subsection (a) of § 30137 of this title.
(4) Deductions attributable to rents and royalties.— Deductions other than those provided in clause (2), (5) or (6) of this subsection, allowed under § 30121 of this title, which are attributable to property held for the production of rents or royalties.
(5) Certain deductions of life tenants and income beneficiaries of property.— Deductions other than those provided in clause (2) for depreciation and depletion allowed by § 30127 of this title to a life tenant of property, or an income beneficiary of property held in trust.
(6) Losses from sale or exchange of property.— Deductions other than those provided in clause (2) allowed by § 30121 of this title as losses from the sale or exchange of property.
(7) Alimony.— The deduction allowed by § 30133 of this title; and
(8) Expenses incurred or paid in the generation of income other than the trade or business of the taxpayer.— Amounts incurred and paid by the taxpayer related to the generation of income other than the trade or business of the taxpayer, up to the amount generated during the taxable year as provided in § 30122 of this title under the regulations promulgated by the Secretary.
History —Jan. 31, 2011, No. 1, § 1031.03, retroactive to Jan. 1, 2011; Sept. 19, 2014, No. 159, § 1.
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 A - Determination of Net Income, General Concepts (§§ 30101 — 30105) › § 30104 - Deductions

(a) The following deductions shall be allowed on computing net income:
(1) Expenses related to trade or business, as provided in § 30121 of this title which have not been claimed as [a] deduction from adjusted gross income.
(2) Expenses not related to the trade or the main business, as provided in § 30122 of this title.
(3) Interest, as provided in § 30123 of this title.
(4) Taxes, as provided in § 30124 of this title.
(5) Losses by individuals, by corporations, losses of capital, and wagering losses, as provided in § 30125 of this title.
(6) Bad debts, as provided in § 30126 of this title.
(7) Depreciation and amortization, that have not been claimed as deduction in determining the adjusted gross income as provided in § 30127 of this title.
(8) Automobile expenses, as provided in § 30127(a)(3) of this title.
(9) Contributions by an employer to an employee trust or annuity plan and compensation under a deferred-payment plan, as provided in § 30129 of this title.
(10) Charitable and other contributions by corporations and partnerships, as provided in § 30130 of this title.
(11) Net operating loss deduction, as determined in § 30134 of this title.
(12) Deduction for employers in the private sector who employ severely impaired persons who have graduated from the training workshops of the rehabilitation programs of the Department of the Family or any other training workshops for such persons as provided in § 30131 of this title.
(13) Bond premium deduction.— In the case of a bondholder, other than an individual, the deduction for amortizable bond premium provided in § 30148 of this title.
(14) Deductions of the estate and other persons on account of decedent’s deductions.— In the case of persons referred to in subsections (b) and (c) of § 30113 of this title, the amount of the deductions with respect to a decedent to the extent allowed by said subsections (b) and (c) of § 30113 of this title.
(15) Deductions applicable to individuals, subject to the provisions of § 30135 of this title.
(16) Special deductions for salaried individuals, subject to the provisions of § 30136 of this title.
(17) Deductions of personal exemptions and for dependents, subject to the provisions of § 30138 of this title.
(18) Deductions to corporations for dividends received as provided in § 30139(a) of this title.
History —Jan. 31, 2011, No. 1, § 1031.04, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 20.
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 A - Determination of Net Income, General Concepts (§§ 30101 — 30105) › § 30105 - Net income

(a) Definition. — “Net income” means the gross income computed in accordance with § 30101 of this title, minus the following items:
(1) The exemptions provided in § 30102 of this title less the expenses attributable to such exempt income, as provided in § 30140 of this title;
(2) the deductions allowed by § 30104 of this title, subject to the provisions of § 30140 of this title, and
(3) the income subject to preferred tax rates, as described § 30111 of this title, less the expenses attributable to such income, as provided in § 30140 of this title.
History —Jan. 31, 2011, No. 1, § 1031.05, retroactive to Jan. 1, 2011.
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 B - Treatment of Certain Income Items (§§ 30111 — 30119) › § 30114 - Gross income from sources within and outside of Puerto Rico

The gross income from sources within or outside of Puerto Rico shall be determined as provided in §§ 30151—30157 of this title.
History —Jan. 31, 2011, No. 1, § 1032.04, retroactive to Jan. 1, 2011.
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 B - Treatment of Certain Income Items (§§ 30111 — 30119) › § 30115 - Services of a child

(a) Amounts received in respect of the services of a child shall be included in his/her gross income and not in the gross income of the parent, even though such amounts are not received by the child.
(b) All expenditures paid or incurred by the parent or the child attributable to amounts which are includible in the gross income of the child and not of the parent solely by reason of subsection (a) shall be treated as paid or incurred by the child.
(c) Any tax assessed against a child, to the extent attributable to amounts includible in the gross income of the child, and not of the parent, solely by reason of subsection (a), shall, if not paid by the child, for all purposes be considered as having also been properly assessed against the parent.
History —Jan. 31, 2011, No. 1, § 1032.05, retroactive to Jan. 1, 2011.
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) › § 30123 - Interest

In the case of a taxpayer other than an individual, all interest paid or accrued within the taxable year on indebtedness, except on indebtedness incurred or continued to purchase or carry obligations the interest upon which is wholly exempt from the taxes imposed by this part to which § 30137(a)(10) of this title refers and the proportional designation of interest expense of financial institutions to which § 30137(f) of this title refers.
History —Jan. 31, 2011, No. 1, § 1033.03, retroactive to Jan. 1, 2011.
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) › § 30124 - Taxes

(a) Taxes in general. — In the case of a taxpayer other than an individual, taxes paid or accrued within the taxable year, except:
(1) Income tax imposed by the authority of the Government of Puerto Rico;
(2) taxes on income and excess profits imposed by authority of the United States, any possession of the United States, or any foreign country, if the taxpayer opts to avail him/herself to any extent of the benefits of § 30201 of this title;
(3) estate, inheritance, devise, bequest, and gift taxes when the value of the property donated, inherited or devised is excluded from gross income under the provisions of § 30101(b)(2) of this title;
(4) taxes assessed for local benefits of a kind tending to increase the value of the property assessed; but this clause shall not exclude the allowance as a deduction of so much of such taxes as is properly allocable to maintenance or interest charges, and
(5) federal import duties and state excise taxes paid by dealers or manufacturers on goods imported, manufactured, produced or acquired in Puerto Rico for sale; but this clause shall not prevent the deduction of said duties and excises under § 30121 of this title.
(b) Shareholders taxes paid by corporation. — The deduction for taxes allowed by subsection (a) shall be allowed to a corporation in the case of taxes imposed to a shareholder of the corporation upon his/her interest as shareholder which are paid by the corporation without reimbursement from the shareholder, but in such cases no deductions shall be allowed to the shareholder for the amount of such taxes.
History —Jan. 31, 2011, No. 1, § 1033.04, retroactive to Jan. 1, 2011.
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) › § 30125 - Deduction for losses by individuals, by corporations, capital losses, and wagering losses

(a) In the case of an individual, losses sustained during the taxable year and not compensated for by insurance or otherwise:
(1) If incurred in trade or business shall be allowed against the net income of the trade or business, or
(2) if incurred in any transaction entered into for profit, though not connected with the trade or business, the deduction shall be limited to the income generated by said for profit transaction.
(b) Losses by corporations.— In the case of a corporation, losses sustained during the taxable year and not compensated for by insurance or otherwise shall be allowed as a deduction against gross income.
(c) Capital losses.—
(1) Limitation.— Losses from sales or exchanges of capital assets shall be allowed only to the extent provided in § 30141 of this title.
(2) Securities becoming worthless.— If any securities, as defined in clause (3) of this subsection, become worthless during the taxable year and are capital assets, the loss resulting therefrom shall, for purposes of this part, be considered as a loss from the sale or exchange of capital assets, on the last day of such taxable year.
(3) Definition of securities.— As used in clause (2) the term “securities” means:
(A) Shares of stock in a corporation, and
(B) rights to subscribe for or to receive such shares.
(4) Stock in affiliate corporation.— For purposes of clause (2), stock in a corporation affiliated with the taxpayer shall not be considered a capital asset. For purposes of this clause a corporation shall be deemed to be affiliated with the taxpayer only if:
(A) At least ninety-five percent (95%) of each class of its stock is owned directly by the taxpayer; and
(B) more than ninety percent (90%) of the aggregate of its gross income for all taxable years has been from sources other than royalties, rents (except rents derived from rental of properties to employees of the company in the ordinary course of its operating business), dividends, interest (except interest received on deferred purchase price of operating assets sold), annuities, or gains from sales or exchanges of stocks and securities, and
(C) the taxpayer is a domestic corporation.
(d) Wagering losses.— Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.
(e) Basis for determining loss.— The basis for determining the amount of deduction for losses sustained, to be allowed in accordance with subsections (a) or (b) of this section, and for bad debts, to be allowed under § 30126 of this title, shall be the adjusted basis provided in § 30142(b) of this title for determining the loss from the sale or other disposition of property.
History —Jan. 31, 2011, No. 1, § 1033.05, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 27.
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) › § 30128 - Basis for depreciation and depletion

(a) Basis for depreciation. — The basis upon which consumption, exhaustion, wear and tear, and obsolescence are to be allowed with respect to any property shall be the adjusted basis provided in § 30142(b) of this title in order to determine the gain in the sale or other disposition of the property.
(b) Basis for depletion. — The basis upon which depletion, are to be allowed with respect to any property shall be the adjusted basis provided in § 30142(b) of this title in order to determine the gain in the sale or other disposition of the property.
History —Jan. 31, 2011, No. 1, § 1033.08, retroactive to Jan. 1, 2011.
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) › § 30131 - Deduction for employers in the private sector who employ severely handicapped persons who have graduated from the training workshops of the rehabilitation programs of the Department of Social Services or any other training workshops for such persons

(a) In the case of an employer in a private company, there shall be allowed a deduction of four hundred dollars ($400) for each severely handicapped person who is employed during at least twenty (20) hours a week for nine (9) months of the taxable year. The deduction may be claimed for a maximum of five (5) severely handicapped persons employed. For purposes of this subsection, the definition of the term “severely handicapped person” that is contained in the regulations in effect of the Program of Vocational Rehabilitation of the Department of Social Services shall apply.
(b) Any employer in the private sector claiming this deduction must attach to his/her income tax return the following documents:
(1) A certificate attesting to the fact that the person for whom the deduction is requested has been his/her employee for at least nine (9) months of the taxable year for which the deduction is being claimed, and
(2) a certificate issued by the Secretary of Social Services, in accordance with the norms and procedures adopted by him/her and through the administrative agency designated by him/her, in which it is stated that the person for whom the deduction is claimed is severely handicapped.
History —Jan. 31, 2011, No. 1, § 1033.11, retroactive to Jan. 1, 2011.
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) › § 30132 - Agricultural income

(a) Allowance. — In the case of a bona fide farmer, duly certified as such by the Secretary of Agriculture, there shall be allowed a deduction of ninety percent (90%) of the farmer’s net income from the agricultural business declared in the corresponding income tax return filed within the term prescribed by this part.
(b) Definitions. — For purposes of this section:
(1) Bona fide farmer. — The term “bona fide farmer” means any natural or juridical person that during the taxable year for which he/she claims the deduction provided in this section, holds a certificate in effect issued by the Secretary of Agriculture certifying that during said year he/she was engaged in the conduct of an agricultural business, as defined in clause (2), and derives fifty percent (50%) or more of his/her gross income from an agricultural business, as an operator, owner, or lessee, as declared in his/her income tax return.
(2) Agricultural business. — The term “agricultural business” means the operation of one or more of the following businesses:
(A) The tilling and/or cultivation of the land for the production of fruit, vegetables, spices for seasoning, and all kinds of food for humans or animals;
(B) the breeding of animals for the production of meat, milk, or eggs;
(C) the breeding of purebred race horses;
(D) agroindustrial or agropecuary operations; operations engaged in the packing, crating or classifying of Puerto Rican agricultural products which are part of the same agricultural business;
(E) seaculture, commercial fishing and aquaculture;
(F) the commercial production of flowers and ornamental plants for the local market and for export;
(G) the cultivation of vegetables by using hydroponic methods, the sheds and other equipment used for these purposes;
(H) the processing of grains by associations of bona fide farmers of grains for the consumption of the livestock industry, and
(I) the breeding of Puerto Rican pure paso fino horses.
(c) Beginning of the partial exemption period. — The partial exemption period during which the deduction provided by this section can be used shall begin with the taxable year for which the Secretary is notified of the taxpayer’s intent to avail him/herself of the benefits thereof. Said notice shall be given at the time the corresponding income tax return is filed, and it shall be a part thereof.
(d) Expenses or losses deduction. — The deduction for expenses or losses incurred in the farming business shall be subject to the provisions of § 30419 of this title.
History —Jan. 31, 2011, No. 1, § 1033.12, retroactive to Jan. 1, 2011.
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) › § 30133 - Alimony or separate maintenance payment

(a) General rule.— In the case of an individual, he/she may deduct an amount equal to the alimony or separate maintenance payments paid during the taxable year.
(b) Definition of alimony or separate maintenance payment.— For purposes of this section, the term “alimony or separate maintenance payment” means any alimony or separate maintenance payment as defined in § 30112 of this title which is includible in the gross income of the recipient under § 30112 of this title.
(c) Requirement of account number.— The Secretary may prescribe regulations under which:
(1) Any individual receiving alimony or separate maintenance payments is required to furnish the individual’s taxpayer account number (social security number) to the person making the payments, and
(2) the individual making the payments is required to include the taxpayer account number on the individual’s return for the taxable year in which the payments are made.
(d) Coordination with § 30419 of this title.— No deduction shall be allowed under this section with respect to any payment if, by reason of § 30419 of this title (relating to income of alimony trusts, estates in case of divorce or separation), the amount thereof is not includible in the individual’s gross income.
History —Jan. 31, 2011, No. 1, § 1033.13, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 32.
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) › § 30140 - Deductions applicable to taxpayers as individuals—limitation in computing net income

(a) In the case of individuals who are taxpayers who have earned income subject to preferred rates of twenty thousand dollars ($20,000) or more during the taxable year, in computing the net income subject to regular taxes for said year, there shall not be allowed as deduction such part thereof described in § 30135 of this title, that is attributable to income subject to preferred rates, as established in § 30111 of this title.
(b) In order to determine the limitation imposed in subsection (a) of this section, the adjusted gross income (as defined in § 30103 of this title) shall be classified into two income categories:
(1) Income subject to preferred rates, and
(2) income subject to regular tax
(c) The total of deductions allowable for the taxable year under § 30135 of this title shall be prorated between the two categories of income generated during the same taxable year, as described in subsection (b) of this section. In each income category, there shall be allowed as [a] deduction the proportional amount of said deductions for purposes of computing the taxable net income.
History —Jan. 31, 2011, No. 1, § 1033.20, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 38.
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 D - Determination of Capital Gains and Losses (§§ 30141 — 30149) › § 30143 - Determination of amount of and recognition of gain or loss

(a) Computation of gain or loss. — The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in § 30142(b) of this title for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized.
(b) Amount realized. — The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property received other than money.
(c) Recognition of gain or loss. — In the case of sale or exchange of property the extent to which the gain or loss determined under this section shall be recognized for purposes of this part shall be determined under § 30144 of this title.
(d) Installment sales. — Nothing in this section shall be construed to prevent, in the case of property sold under contract providing for payment in installments, the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received.
History —Jan. 31, 2011, No. 1, § 1034.03, retroactive to Jan. 1, 2011.
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 D - Determination of Capital Gains and Losses (§§ 30141 — 30149) › § 30145 - Payment to dealer in dealer’s contract cancellation

Amounts paid to a dealer, by its principal or grantor, on account of a dealer’s contract cancellation (if the dealer has a substantial capital investment in the dealership) shall be considered as amounts received in exchange for such agreement.
History —Jan. 31, 2011, No. 1, § 1034.05, retroactive to Jan. 1, 2011.
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 D - Determination of Capital Gains and Losses (§§ 30141 — 30149) › § 30147 - Loss from wash sales of stock or securities

(a) In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning thirty (30) days before the date of such sale or disposition and ending thirty (30) days after such date, the taxpayer has acquired by purchase or by an exchange on which the entire amount of gain or loss was recognized by law, or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed under § 30125(a)(2) of this title nor such deduction shall be allowed under § 30125(b) of this title unless the claim is made by a corporation, a dealer in stock or securities, with respect to a transaction made in the ordinary course of such business.
(b) If the amount of stock or securities acquired or covered by the contract or option to acquire is less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under the rules and regulations prescribed by the Secretary.
(c) If the amount of stock or securities acquired or covered by the contract or option to acquire is not less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the acquisition of which or the contract or option to acquire which resulted in the nondeductibility of the loss shall be determined under the rules and regulations prescribed by the Secretary.
History —Jan. 31, 2011, No. 1, § 1034.07, retroactive to Jan. 1, 2011.
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 E - Income Source Rules (§§ 30151 — 30157) › § 30152 - Income from sources outside Puerto Rico

(a) Gross income from sources outside Puerto Rico. — The following gross income items shall be treated as income from sources outside Puerto Rico:
(1) Interest not derived from sources within Puerto Rico, as provided in § 30151(a)(1) of this title;
(2) dividends and benefits not derived from sources within Puerto Rico as provided in § 30151(a)(2) of this title;
(3) compensation for labor or personal services performed outside Puerto Rico;
(4) rentals or royalties of property located outside Puerto Rico or of any interest on said property, including rentals or royalties for the use of or for the privilege of using outside Puerto Rico patents, copyrights, secret processes and formulas, good will, trade-marks, trade brands, franchises, and other like property;
(5) gains, profit and income from the sale of real property located outside Puerto Rico;
(6) distribution in complete or partial liquidation that are not derived from sources within Puerto Rico, as provided in § 30151(a)(7) of this title, and
(7) Insurance premiums. — Income derived from an insurance contract securing risks located outside Puerto Rico.
(b) Net Income from sources outside Puerto Rico. — Any expense, loss, and other deduction properly apportioned or allocated thereto and a ratable part of any expense, loss or other deduction that may not be definitely allocated to any other item or class of gross income shall be deducted from the gross income items specified in subsection (a) this section. The remainder, if any, shall be totally included as a net income from sources within Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1035.02, retroactive to Jan. 1, 2011.
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 E - Income Source Rules (§§ 30151 — 30157) › § 30154 - Income from sources partially within and partially outside Puerto Rico

(a) In general. —
(1) Items of gross income, expenses, loss and deductions other than those specified in §§ 30151 and 30152 of this title shall be allocated or apportioned to sources within or outside Puerto Rico under the rules and regulations prescribed by the Secretary. Where items of gross income are separately allocated to sources within Puerto Rico, they shall be deducted for the purpose of computing the gross income therefrom, the expenses, losses, and other deductions properly apportioned or allocated thereto, and a ratable part of other expenses, losses or other deductions which cannot definitely be allocated to any item or class of gross income. The remainder, if any, shall be included in full as net income from sources within Puerto Rico.
(2) In the case of gross income derived from sources partly within and partly outside Puerto Rico, the net income may first be computed by deducting the expenses, losses or other deductions apportioned or allocated thereto, and a ratable part of any expenses, losses or other deductions which cannot definitely be allocated to any item or class of gross income; and the portion of such net income attributable to sources within Puerto Rico may be determined by processes or formulas of general apportionment prescribed by the Secretary.
(3) Gains, profits and income from transportation and other services rendered partly within and partly outside Puerto Rico as determined under § 30157 of this title.
(4) Gains, benefits and income from the sale of personal property produced in whole or in part by the taxpayer within, and sold outside Puerto Rico, or produced in whole or in part by the taxpayer outside, and sold within Puerto Rico, shall be treated as derived from sources partly within and partly outside Puerto Rico. Gains, profits and income derived from the acquisition of personal property within, and their sale outside Puerto Rico or from the acquisition of personal property outside and their sale within Puerto Rico shall be treated as completely derived from sources within the country in which such property was sold, except as provided in § 30155 of this title.
History —Jan. 31, 2011, No. 1, § 1035.04, retroactive to Jan. 1, 2011.
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 E - Income Source Rules (§§ 30151 — 30157) › § 30155 - Special rule on effectively connected income

(a) In general. — For purposes of this part, to determine the income, gain or loss which shall be treated as effectively connected with the active conduct of a trade or business within Puerto Rico, the rules provided in subsection (f) and the definitions established in subsection (h) of Section 1123 of Act No. 120 of October 31, 1994, a[s] amended, known as the “Puerto Rico Internal Revenue Code of 1994”, in effect as of the date of approval of this Code, shall apply, except that any reference in such subsections to specific provisions of Subtitle A of the Puerto Rico Internal Revenue Code of 1994 shall be treated, for purposes of this Code, as references to the similar provisions of §§ 30041 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 1035.05, retroactive to Jan. 1, 2011.
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 E - Income Source Rules (§§ 30151 — 30157) › § 30156 - Special rule in the case of international communications income

(a) Sources rules. —
(1) Person of Puerto Rico. — In the case of any natural or juridical person of Puerto Rico, fifty percent (50%) of any international communications income shall be sourced in Puerto Rico and fifty percent (50%) of such income shall be sourced outside Puerto Rico.
(2) Foreign persons. —
(A) In general. — Except as provided in regulations or paragraph (B), in the case of a foreign natural or juridical person, any international communications income shall be sourced outside Puerto Rico.
(B) Special rule. — In the case of a foreign natural or juridical person who maintains an office or other fixed place of business in Puerto Rico, any international communications income attributable to such office or other fixed place of business shall be sourced in Puerto Rico.
(b) Definitions. — For purposes of this subsection, the term “international communications income” includes all income derived from the transmission of communications or data from Puerto Rico to the United States or any foreign country, or from the United States or any foreign country to Puerto Rico. [Notwithstanding, such term does not include the income derived from rights for the transmission in Puerto Rico of television programs, movies and radio programs or other similar rights, of which are subject to the provisions of § 30151 of this title.]
History —Jan. 31, 2011, No. 1, § 1035.06, retroactive to Jan. 1, 2011.
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 E - Income Source Rules (§§ 30151 — 30157) › § 30157 - Special rules in the case of transportation income

(a) Transportation beginning and ending in Puerto Rico. — Except as otherwise provided in this section, all transportation income attributable to transportation which begins and ends in Puerto Rico shall be treated as totally derived from sources within Puerto Rico.
(b) Transportation having Puerto Rico connection. — There shall be treated as from sources in Puerto Rico, fifty percent (50%) of all transportation income attributable to transportation which:
(1) Is not described in subsection (a), and
(2) begins or ends in Puerto Rico.
(c) Special rule in the case of cruises. — Gains, profits and income derived from the operation of passenger cruise ships by foreign corporations or partnerships shall be treated as income sourced outside Puerto Rico.
(d) Transportation income. — For purposes of this subchapter, the term “transportation income” means any gain, profit or income derived from or in connection with
(1) the use or hiring (leasing for use by others) of a vessel or aircraft, or
(2) the performance of services directly related to the use of a vessel or aircraft.
(e) For purposes of subsection (d) of this section, the term “vessel or aircraft” includes any container used in connection with a vessel or aircraft.
History —Jan. 31, 2011, No. 1, § 1035.07, retroactive to Jan. 1, 2011.
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 1006 - Accounting Periods and Methods of Accounting (§§ 30171 — 30182) › § 30173 - Taxable year for which items of gross income shall be included

The amount of any item of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under the methods of accounting permissible under § 30172 of this title, such amount is to be properly accounted for as of a different period. In the case of the death of a taxpayer whose taxable income is computed under an accrual method of accounting, any amount accrued only by reason of the death of the taxpayer shall not be included in computing taxable income for the period in which falls the date of the taxpayer’s death.
History —Jan. 31, 2011, No. 1, § 1040.03, retroactive to Jan. 1, 2011.
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 1006 - Accounting Periods and Methods of Accounting (§§ 30171 — 30182) › § 30174 - Taxable year for which deductions and credits taken

(a) General rule. — The amount of any deduction or credit allowed by this part shall be taken for the taxable year in which they were “paid and incurred” or “paid and accrued” depending on the method of accounting used in computing taxable income, unless that to clearly reflect the income, the deductions and the credit, these should be claimed in another period. In the case of the death of a taxpayer whose taxable income is computed under an accrual method of accounting, any amount accrued as a deduction or credit only by reason of the death of the taxpayer shall not be allowed in computing taxable income for the period in which falls the date of the taxpayer’s death.
(b) Interests, rentals and other pre-paid expenses. —
(1) In general. — If a taxpayer determines his/her net income based on the cash receipts and disbursements method of accounting, the interests, rentals and other expenses paid by such taxpayer which, under the regulations prescribed by the Secretary, are treated as allocable to any period occurring after the close of the taxable year in which they are paid, shall be charged to the capital account and treated as paid in the period during which they are allocable.
(2) Exception. — This subsection shall not apply to the points paid on indebtedness incurred for the acquisition, construction, or improvement of, and secured by the principal residence of the taxpayer to the extent that, under the regulations prescribed by the Secretary, such payment of points is an established business practice in the area in which such indebtedness is incurred, and the amount of such payment does not exceed the amount generally charged in such area.
History —Jan. 31, 2011, No. 1, § 1040.04, retroactive to Jan. 1, 2011.