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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1045 - Deduction, Credit and Refund (§§ 32121 — 32130) › § 32125 - Refund of taxes paid

(a) In general. — A person who has paid the sales tax or has had the same improperly collected or has overpaid the same, may request, in writing, a refund thereof from the Secretary within the term and pursuant to the procedures established by the Secretary.
(b) Application for refund. — A refund of the sales tax that has been improperly paid or collected or paid in excess may not be claimed in any of the sales tax returns. The Secretary shall issue the appropriate form to claim the refund. The right to receive any refund under the provisions of this section is nontransferable, except to a successor entity in a corporate reorganization, to the executor, [administrator], receiver, trustee in case of bankruptcy, or assignee in an insolvency procedure, of the person entitled to the refund.
(c) No refund whatsoever may be claimed unless the Secretary is presented with a sworn application within the period established to claim a refund of the tax paid or improperly collected, or paid in excess, pursuant to §§ 33001 et seq. of this title. The application for refund shall include at least the following information:
(1) The name and address of the person claiming the refund;
(2) a description of each taxable item;
(3) copies of the sales invoices of the taxable items object of the refund claim, and
(4) a detailed explanation of the reason to claim the refund.
(d) When the Secretary approves an application for refund, or when he/she determines motu proprio that the taxpayer has made an improper payment or an overpayment, he/she shall credit the amount that corresponds to the refund to any tax debt of the taxpayer. Any amount that remains from the total of the tax overpaid or improperly paid in those cases whereby the taxpayer has no outstanding tax debt whatsoever must be returned to the taxpayer.
(e) A total or partial denial of an application for refund must be notified in the form and manner provided in §§ 33001 et seq. of this title.
(f) When the Secretary concludes that a refund has been erroneously paid, he/she may reconsider the case and re-determine the tax denying the refund and notifying the taxpayer of a deficiency in the form and pursuant to the procedure established in §§ 33001 et seq. of this title.
(g) Should the application for refund be denied in whole or in part, the taxpayer may initiate the procedure provided in §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 4050.05, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32142 - Display of Certificate of Registration

The certificate of registration shall be displayed at all times in a place visible to the general public in each place of business for which it is issued. No person may conduct business as a merchant, nor may any person sell or receive anything of value in lieu of admissions, without first having obtained a certificate or after said certificate has been cancelled; and no person shall receive a license from any entity of the Government of Puerto Rico to conduct such business without having obtained a certificate or after said certificate has been cancelled.
History —Jan. 31, 2011, No. 1, § 4060.02, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32143 - Commercial undertaking without a Certificate of Registration

Any person who conducts business in Puerto Rico as a merchant without having applied for a certificate of registration, or whose registration has been revoked, shall be subject to the penalties established in §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 4060.03, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32144 - Registry of Exhibitors

(a) As used in this section, the term “exhibitor” means a person who enters into an agreement which authorizes the display of taxable items in a specialized convention or exhibition. The following provisions apply to the registry of exhibitors as merchants under this part:
(1) An exhibitor whose agreement prohibits the sale of taxable items shall not be subject to the requirement of registering as a merchant;
(2) an exhibitor whose agreement provides only for the wholesale of taxable items must obtain a certificate of exemption from the purchaser, but shall not be subject to the requirement of registering as a merchant;
(3) an exhibitor whose agreement authorizes the retail sale of taxable items must register as a merchant and collect the sales and use tax imposed by this part on said sales, and
(4) any exhibitor who makes a sales order by mail pursuant to § 32028 of this title must register as a merchant.
(b) Any person who organizes a specialized convention or exhibition must have his/her agreement as exhibitor available for inspection by the Secretary.
History —Jan. 31, 2011, No. 1, § 4060.04, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32145 - Resources of the Secretary

The Secretary is empowered to purchase supplies and equipment and incur in any other proper expenditures needed to enforce this part.
History —Jan. 31, 2011, No. 1, § 4060.05, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32146 - Requirement of conservation of documents

Any merchant, as defined in this part, shall ensure the conservation in Puerto Rico for a period not less than six (6) years, of all information that provides evidence of the taxable items received, used, sold at retail, distributed or stored, and leased by said merchant, such as invoices, bills of lading, collections for said sales, and other documents the Secretary may require.
History —Jan. 31, 2011, No. 1, § 4060.06, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32147 - Documents required from merchants and purchasers

(a) Documents required from merchants. — Any merchant subject to the provisions of this part must keep accounting books, papers, documents, and any other evidence related to the sales and the amounts of the sales taxes withheld and deposited for a period not less than six (6) years. The documents and information to be kept shall include, but not be limited to, statements, invoices, sales invoices, commercial receipts, cancelled checks, payment receipts, and certificates of exemption.
(b) Documents required from purchasers. —
(1) In general. — The purchaser subject to the provisions of this part must conserve the sales receipts, documents, and any other evidence of the retail purchase and the payment of the corresponding taxes for a period of not less than twenty four (24) hours.
(2) Exception. — In the case that the taxable item acquired has a purchase price of one thousand dollars ($1,000) or more, the purchaser must conserve the documents mentioned in clause (1) of this subsection for a period of not less than four (4) years.
History —Jan. 31, 2011, No. 1, § 4060.07, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32148 - Documents required for claiming credits

(a) Any merchant who claims a credit granted in this part against his/her liability for the sales tax must conserve and have available for the Secretary all documents needed to verify the right of said merchant to said credits in the manner established by the Secretary through regulations, including by means of electronic transmission.
(b) The Secretary may deny a credit claimed in the return to the extent that it is not supported by the information required under this section, in which case the amount owed shall be treated as a deficiency, as established in §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 4060.08, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32149 - Sampling

(a) In the case that a merchant does not keep proper accounting books for his/her retail sales, the Secretary may, based on a sample of the available registers of the merchant or on other information related to the sales or purchases made by said merchant during a representative period, determine the sales ratio of taxable items compared with the total sales, or the ratio between the purchase of taxable items and the total purchases made by the merchant. This section does not intend to relieve the merchant from collecting the sales and use tax.
(b) In case the accounting books of a merchant are properly kept but very voluminous, the Secretary may select a sample of the transactions and make a projection on the basis of the data collected during the whole period of the audit. This shall be done for the purpose of determining the ratio of taxable item sales compared with the total sales or the proportion between the purchase of taxable items and the total purchases made by the merchant.
To conduct said sampling, the Secretary may reach an agreement with the merchant to determine the means and methods to be used in the sampling process. In the event that they do not reach an agreement, the merchant shall be entitled to a review by the Secretary.
(c) In the case of a request for refund, every merchant is entitled, when his/her registers are properly kept but voluminous, to establish the amount of the refund through statistical sampling or through any other sampling method agreed to with the Secretary. Regardless of the sampling method selected, it must reflect the payments in excess as well as the deficiencies in the payment of the sales and use tax, as applicable.
The sampling method must be approved by the Secretary before a request for refund is submitted. Therefore, a request for refund submitted before the sampling method has been approved by the Secretary may not be deemed a completed request for refund.
(d) For purposes of this section, the Secretary shall establish the procedures, through regulations, related to the sampling methods, including the criteria for their use and the approval of the sampling method selected by a merchant.
History —Jan. 31, 2011, No. 1, § 4060.09, 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 V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1046 - Registry and Documents Required (§§ 32141 — 32151) › § 32150 - Bond

(a) In all cases in which it is necessary to ensure the payment of the sales tax established by the provisions of this part, the Secretary may require a cash deposit, a bond, or any other security as a condition for a person to obtain or retain a certificate as a registered merchant under this part. Said bond shall be in the manner and for the amount the Secretary may deem appropriate under the circumstances.
(b) Any person who fails to make such a cash deposit, post a bond or any other security as provided by subsection (a) of this section, shall not be entitled to obtain or retain a certificate of registration under this part, and the Secretary of Justice is hereby empowered to initiate the corresponding legal proceedings when so required by the Secretary in order to prevent the person from doing business, subject to the provisions of this part, until the cash deposit has been made or the bond or other security has been posted with the Secretary.
History —Jan. 31, 2011, No. 1, § 4060.10, 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 V-B - Consumption surtax (§§ 32281 — 32283) › Chapter 1050H - Imposition (§§ 32281 — 32283) › § 32281 - Consumption surtax—Sales tax

(a) There shall be levied, collected, and paid, at the rate established in this section and in addition to the sales and use tax established in §§ 32001 et seq. of this title, a tax on every sales transaction of a taxable item in Puerto Rico made after June 30, 2015, but before the effective date of §§ 32201 et seq. of this title. The application of the tax shall be subject to the exemptions granted in §§ 32051-32071 of this title.
(b) The tax rate shall be four point five percent (4.5%) of the sales price of taxable items and bundled transactions.
(c) There shall be levied, collected, and paid a tax on business to business services and designated professional services as defined in §§ 32001 et seq. of this title rendered after September 30, 2015, but before the effective date of §§ 32201 et seq. of this title. The applicable tax rate shall be four percent (4%). Provided, That the exceptions established in §§ 32051-32071 of this title shall apply to the tax established in this subsection in the same manner as they would apply to taxable services under subsections (a) and (b) of this section.
(d) The tax established in subsection (a) of this section shall apply to the sale of the same taxable items subject to the sales tax established in §§ 32001 et seq. of this title, and shall be collected, remitted, and paid in the same form and manner as, and together with the sales tax established in §§ 32001 et seq. of this title. For purposes of this section, the definitions established in §§ 32001 et seq. of this title shall be used.
History —Jan. 31, 2011, No. 1, added as § 4210.01 on July 1, 2015, No. 101, § 6; Sept. 30, 2015, No. 159, § 29.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › Part V-B - Consumption surtax (§§ 32281 — 32283) › Chapter 1050H - Imposition (§§ 32281 — 32283) › § 32282 - Consumption surtax—Use tax

(a) There shall be levied, collected, and paid a tax at the rate established in this section and in addition to the sales and use tax established in §§ 32001 et seq. of this title on the use, storage, or consumption of a taxable item in Puerto Rico made after June 30, 2015, but before the effective date of §§ 32201 et seq. of this title, unless the taxable item has been subject to the sales and use tax under §§ 32021 and 32281 of this title.
(b) The tax rate shall be four point five percent (4.5%) of the sales price of a taxable item and bundled transactions.
(c) There shall be levied, collected, and paid a tax on business to business services and designated professional services as defined in §§ 32001 et seq. of this title rendered after September 30, 2015, but before the effective date of §§ 32201 et seq. of this title, insofar as the taxable item is not subject to the sales and use tax under §§ 32021 and 32281 of this title. The applicable tax rate shall be four percent (4%). Provided, That the exceptions established in §§ 32051-32071 of this title shall apply to the tax established in this subsection in the same manner as they would apply to taxable services under subsections (a) and (b) of this section.
(d) The tax established in subsection (a) of this section shall apply to the use of the same taxable items subject to the use tax established in §§ 32001 et seq. of this title, and shall be collected, remitted, and paid in the same form and manner as, and together with the use tax established in §§ 32001 et seq. of this title.
History —Jan 31, 2011, No. 1, added as § 4210.02 on July 1, 2015, No. 101, § 6; Sept. 30, 2015, No. 159, § 30.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › Part V-B - Consumption surtax (§§ 32281 — 32283) › Chapter 1050H - Imposition (§§ 32281 — 32283) › § 32283 - Consumption surtax—Value-added tax

(a) There shall be levied, collected, and paid, at the rates established in this section and in addition to the value-added tax established in §§ 32201 et seq. of this title, a tax on every taxable item and taxable transaction as defined in §§ 32201 et seq. of this title, as of the effective date of §§ 32201 et seq. of this title.
(b) The tax rate shall be four point five percent (4.5%) of the value of the taxable item and taxable transaction.
(c) The tax established in this section shall apply to taxable items and taxable transactions subject to the value-added tax established in §§ 32201 et seq. of this title, and shall be collected, remitted, and paid in the same form and manner as, and together with the value-added tax established in §§ 32201 et seq. of this title. For purposes of this section, the definitions established in §§ 32201 et seq. of this title shall be used.
History —Jan 31, 2011, No. 1, added as § 4210.03 on July 1, 2015, No. 101, § 6; Sept. 30, 2015, No. 159, § 31.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32422 - Tax uniformity

Taxes shall be uniform and general for products manufactured or produced abroad and introduced or imported into Puerto Rico, as well as for those manufactured or produced in Puerto Rico, and said taxes shall be assessed and collected by the Secretary according to the provisions of §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 5021.02, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32423 - Time of taxation

(a) Distilled spirits.— The tax shall apply to distilled spirits, spirits, and alcohols as soon as they are separated in either a pure or impure state, by distillation or other evaporation process, from any substance, whether fermented or not, even if at any time they are transformed into any other substance, either during the original distillation or evaporation process or through any other process. However, the tax rate and the tax basis to be paid shall be imposed on the basis of the finished product.
(b) Wines and beer manufactured in Puerto Rico.— The tax shall be imposed on wines and beer manufactured in Puerto Rico once these products, in the process of their fermentation, have generated measurable amounts of alcohol. The tax shall be imposed on beer and unfermented malt products once alcohol has been added to the products. However, the tax rate and the tax base to be paid shall be imposed on the basis of the finished product.
(c) Distilled spirits and alcoholic beverages introduced or imported into Puerto Rico.— The tax shall be imposed on distilled spirits and alcoholic beverages brought from abroad at the time of their arrival at a port in Puerto Rico in the sea or air vessel transporting them. However, the tax rate and the tax base to be paid shall be imposed on the basis of the finished product.
History —Jan. 31, 2011, No. 1, § 5021.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 149.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32424 - Time for producers and importer-dealers to pay taxes

(a) Distillers. — The taxes established under this part shall be paid by the distiller before the removal of the spirits from the distillery, except in those cases whereby the removal of spirits therefrom without paying the taxes is authorized by this part or through regulations to that effect.
(b) Rectifiers. — Those rectifiers who obtain spirits from a distillery without the appropriate taxes having been previously paid shall be bound to pay such taxes before the products rectified or bottled by them are definitely removed from the bonded warehouse where they were deposited.
(c) Manufacturers, bottlers and canners. — Manufacturers, bottlers, and canners whose products are subject to the provisions of this part shall declare and pay the appropriate taxes before the products manufactured, bottled, or canned by them leave or are removed from the bonded facilities in their respective factories.
(d) Importer-dealers. — The taxes established in this part shall be paid on distilled spirits and alcoholic beverages imported or introduced into Puerto Rico, whether for commercial purposes or for personal or domestic consumption, before they are taken or removed from the custody of the customhouse, post office, express carrier, dock, pier, transportation company, or any public or private carrier that brought them to Puerto Rico, or in the manner prescribed by the Secretary through regulations, except as provided in § 32443 of this title. The person who imports such distilled spirits or alcoholic beverages shall declare the import of said products and dispose of the same according to and in the manner prescribed by the Secretary.
(e) Exceptions. — The Secretary may authorize the removal of distilled spirits or alcoholic beverages from:
(1) Distilleries, factories or bonded warehouses to be rectified, bottled or canned in Puerto Rico and stored in bonded warehouses;
(2) industrial plants and bonded warehouses without payment of taxes, to be deposited in bonded warehouses;
(3) industrial plants and importer bonded warehouses without payment of the taxes established in this part, if the distiller, rectifier, manufacturer, or dealer has posted bond to guarantee the taxes which encumber said products at the time of their removal, under the conditions and in the amount prescribed by the Secretary. In those cases, the Secretary is hereby authorized to establish the time and manner in which to taxes shall be paid on said products, assessed and computed at the time of their removal from industrial plants, or
(4) bonded warehouses without the payment of taxes, for the purposes exempt by this part.
History —Jan. 31, 2011, No. 1, § 5021.04, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32425 - Taxes as first lien

Any person who owns, possesses, or exploits any still, distillery, or distilling apparatus, rectifying plant or factory, public or private bonded warehouse, or who in any way is interested in the use and operation thereof shall be individually or severally responsible, as the case may be, for the taxes imposed by this part on the distilled spirits and alcoholic beverages produced in said plants or stored in said bonded warehouses. The taxes on distilled spirits and alcoholic beverages shall be deemed to be and shall constitute a first lien on the distillery, factory, or rectifying plant which has produced them; on stills, distilling devices, containers, vessels, fixtures, appliances, and tools used in their manufacture as well as those in the bonded warehouses where they are stored. They shall also constitute a first lien on the lot or parcel of land where the distillery, rectifying plant, factory, or public or private bonded warehouse is located, as well as on any building located thereon. Said first lien shall be effective and valid from the exact instant said spirits or alcoholic beverages exist as such and shall cease to be effective only when said taxes have been paid in full pursuant to this part.
History —Jan. 31, 2011, No. 1, § 5021.05, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter A - Taxes (§§ 32421 — 32426) › § 32426 - Obligation of taxpayer-liquidation of taxes and refunds

(a) Those persons who, in accordance with the provisions of this part, must pay the taxes specified therein shall do so without waiting for the Secretary to require that they do so. Otherwise, the amount owed shall count as a deficiency for the purposes established in this Code. The payment of the taxes specified in this part shall not be deemed to be final and definitive until approved by the Secretary.
(b) As to the claims filed by taxpayers concerning the taxes and license fees illegally or unduly charged, or in excess of the amount due, the Secretary is hereby authorized to refund said taxes and license fees pursuant to the provisions of §§ 261 and 262 of this title, insofar as the taxpayer demonstrates to the satisfaction of the Secretary that he/she has satisfied the tax burden.
(c) It shall be assumed that the taxpayer has passed on the taxes to another person in the amount resulting to be the difference between the sale price of the items subject to taxation which have been or would be the object of credit or refund, and the sum of:
(1) The cost of said items, and
(2) the average benefit of the amount involved.
History —Jan. 31, 2011, No. 1, § 5021.06, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter B - License Fees (§§ 32431 — 32433) › § 32432 - Payment of taxes, license fees and penalties

Those persons required to pay taxes, license fees, penalties, or to make other payments provided by this Code shall pay said taxes, fees, or penalties and other items by check or legal tender against correlatively and/or alphabetically pre-numbered receipts.
History —Jan. 31, 2011, No. 1, § 5022.02, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter B - License Fees (§§ 32431 — 32433) › § 32433 - Classification of licenses for industrial plants and commercial establishments

When imposing license fees, the Secretary shall classify all industrial plants and commercial establishments in accordance with their production and volume of business. The Secretary shall establish the license classifications through regulations.
History —Jan. 31, 2011, No. 1, § 5022.03, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32441 - Exempt persons, organizations, and agencies

(a) Distilled spirits and alcoholic beverages shall be exempt from taxation as provided in this part when they are sold or transferred to the following persons, agencies, and organizations:
(1) United States Armed Forces, including the Puerto Rico National Guard (land and air).
(A) The United States Armed Forces, when the same are for use and consumption within duly authorized military establishments only. This exemption shall be extended for use and consumption by active military personnel in their homes outside of military bases.
(B) Military Forces of Puerto Rico, when the same are for use and consumption within duly authorized military establishments only.
(2) International organizations entitled to the privileges, exemptions, and immunities, such as international organizations under Public Law No. 291, 79th Congress, 59 Stat. 669, their foreign officials and employees.
(3) Career consuls credited by the Department of State of Puerto Rico, when reciprocity treaties exist between the government they represent and the government of the United States.
(4) The exemption established in this section shall not apply to the persons included in subsections (4), (5), (6), and (7) of § 2914 of Title 25, known as the “Puerto Rico National Guard Institutional Trust”.
History —Jan. 31, 2011, No. 1, § 5023.01, retroactive to Jan. 1, 2011; Sept. 19, 2014, No. 159, § 9.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32442 - Use of distilled spirits and alcoholic beverages in manufacturing processes, research, development, or laboratory experiments, or for medical purposes

(a) The taxes prescribed in this part shall not be imposed on those alcoholic beverages dispatched by or withdrawn from a rectifying, bottling or canning plant, or factory to be used in laboratories for analytical or experimental purposes. Neither shall the taxes prescribed by this part be imposed on such distilled spirits or alcoholic beverages dispatched by a factory or distillery to be used in:
(1) Laboratories for analytical or experimental purposes.
(2) The manufacture of products during the elaboration of which distilled spirits are changed into another chemical substance or do not appear in the end product.
(3) The manufacture of rubbing alcohol, insecticides, or perfumes.
(4) The manufacture of medicinal products.
(5) The official service of hospitals, clinics, and laboratories.
(6) The fortification of wines.
(7) The production of concentrates or essences for the manufacture of soft drinks provided that the end product does not have more than half of one percent (½ of 1%) of alcohol per volume.
(8) The preparation, canning, or packaging of fruits in syrup and other food products, provided that the product that is prepared, canned, or packaged does not contain a volume of distilled spirits in excess of that which is established by the Secretary for such use, in each case.
(9) Research and development.
(b) Absolute alcohol produced, introduced, or imported to Puerto Rico shall also be exempt from taxation under this part when said absolute alcohol is used in the preparation of medicinal products, or in laboratories for analytical or experimental purposes.
(c) The taxes imposed by this part shall not be collected on distilled spirits contained in products imported, introduced, or manufactured in Puerto Rico other than alcoholic beverages, provided they do not contain a volume of distilled spirits in excess of what is established by the Secretary in each case.
(d) Any person who wishes to obtain alcohol or distilled spirits under the provisions of this section shall submit conclusive evidence to the Secretary of his/her right to obtain such products free of tax, post the bonds, and provide warehousing facilities required by the Secretary.
History —Jan. 31, 2011, No. 1, § 5023.02, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32443 - Conditioned exemptions

The tax on distilled spirits or alcoholic beverages shall not be collected in the following cases:
(a) Distilled spirits and alcoholic beverages in transit. — When the distilled spirits or alcoholic beverages pass through Puerto Rico in transit, consigned to persons abroad, while they remain in the custody of customs authorities deposited in a free foreign trade zone or deposited in a bonded warehouse authorized by the Secretary, if they are shipped out of Puerto Rico within one hundred and twenty (120) days from the time they are introduced or imported.
(b) Distilled spirits or alcoholic beverages introduced or imported for re-exporting. — When the spirits and alcoholic beverages introduced or imported to Puerto Rico, consigned to dealers with the intention of being re-exported, while they remain in the custody of customs authorities deposited in a free foreign trade zone, or deposited in a bonded warehouse authorized by the Secretary, if they are re-exported within three hundred and sixty (360) days from the time they are introduced or imported.
(c) Distilled spirits and alcoholic beverages imported or introduced to be sold in Puerto Rico. — When the spirits or alcoholic beverages are imported or introduced to be used or consumed in Puerto Rico, while they remain in the custody of customs authorities deposited in a free foreign trade zone or deposited in a bonded warehouse authorized by the Secretary, for a term not to exceed three hundred sixty (360) days from the time they are introduced or imported.
In all cases, the alcoholic beverages and distilled spirits may be removed for consumption and use in Puerto Rico, pursuant to the provisions of this part.
The term of three hundred and sixty (360) days provided in subsections (b) and (c) of this section to pay taxes may be extended at the discretion of the Secretary for an additional term of up to one hundred and eighty (180) days.
History —Jan. 31, 2011, No. 1, § 5023.03, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32444 - Special exemptions

(a) In lieu of the tax imposed in § 32421(c)(2) of this title on all beer, malt extract, and other fermented or unfermented analogous products with an alcohol content that exceeds one and a half percent (11/2%) per volume, referred to in subsection (c)(2) of said section, which are produced or manufactured by persons whose total production, if any, of such products during their most recent taxable year has not exceeded thirty-one million (31,000,000) wine gallons, there shall be collected a tax in a staggered manner, per wine gallon produced, imported, or introduced, as follows:
(1) Up to nine million (9,000,000) wine gallons — two dollars and fifty five cents ($2.55).
(2) Per each wine gallon in excess of nine million (9,000,000) up to ten million (10,000,000) — two dollars and seventy-six cents ($2.76).
(3) Per each wine gallon in excess of ten million (10,000,000) up to eleven million (11,000,000) — two dollars and ninety-seven cents ($2.97).
(4) Per each wine gallon in excess of eleven million (11,000,000) up to twelve million (12,000,000) — three dollars and eighteen cents ($3.18).
(5) Per each wine gallon in excess of twelve million (12,000,000) up to thirty-one million (31,000,000) — three dollars and thirty-nine cents ($3.39).
(b) Subject to the provisions of §§ 32445—32449 of this title, the benefits of this section shall apply to a person in any taxable year following the year in which the total production of the products described in this subsection, if any, has not exceeded thirty-one million (31,000,000) wine gallons.
(c) The benefits of this section shall also apply to the importers of the products described in this subsection whose producers meet the requirements established in subsection (b) of this section.
History —Jan. 31, 2011, No. 1, § 5023.04, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32445 - Rules of availability for tax exemption

(a) Any person who wishes to avail him/herself of the benefits of § 32444 of this title shall file an application for exemption with the Director of the Industrial Tax Exemption Office.
(1) The Director may require, through regulations, all the information he/she deems necessary and shall, likewise, include upon granting the exemption, those terms and conditions that, in his/her judgment, promote the economic welfare of all sectors of the industry.
(2) The exemption shall take effect from the time the application is filed, and shall continue in effect unless it is rescinded by the Director. The concessionaire shall maintain the level of employment established in the exemption, taking as a basis the level of employment prevailing as of May 31, 1978, in applicable cases; otherwise, the concessionaire shall be subject to the following options:
(A) In the event the concessionaire is forced to maintain a level of employment that is less than the level required in the exemption, but not less than ninety percent (90%) thereof, he/she shall be required to notify the Director of the Industrial Tax Exemption Office of the fact, stating the reasons that justify such reduction.
(B) In the event that the concessionaire is forced to reduce the level of employment to a figure that is less than ninety percent (90%) of the level required in the exemption, he/she shall file a sworn application justifying the reduction, before the Director of the Office of Industrial Tax Exemption, with a copy to the Secretary of the Treasury and to the Secretary of Labor and Human Resources.
(3) The Director shall take into consideration the grounds adduced by the concessionaire to justify the need to reduce employment, but not limited to strikes, war, government action, natural causes, or any other reasonable cause that is beyond the control of the concessionaire, and issue his/her determination, in writing, within thirty (30) days following the date of receipt and acceptance of the petition.
(4) The Director may cancel the exemption in those cases that the concessionaire fails to comply with the corresponding option, or may reduce the type of exemption in proportion to the ratio between the reduced level of employment and the level of employment established in the concession.
(b) Nothing provided herein shall be construed as to alter or modify the provisions of a labor-management agreement between any concessionaire and a labor organization.
History —Jan. 31, 2011, No. 1, § 5023.05, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32446 - Rules to determine total production

In the case of persons who individually or collectively, directly or indirectly, control enterprises that produce one or more classes of the products described in § 32444 of this title, under one or more trademarks, the total annual production of all said classes and marks shall be considered to determine whether these persons may avail themselves of the benefits of § 32444 of this title. In order to determine the total production of the products described in § 32444 of this title of any person during a specific year, not only the direct production of said person shall be taken into account, but also any indirect production thereof made by other persons under franchises, licenses, rights, or similar contracts.
History —Jan. 31, 2011, No. 1, § 5023.06, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32447 - Rules for controlled groups

In the case of controlled groups of corporations or partnerships, the total of thirty-one million (31,000,000) wine gallons stated in § 32444 of this title shall apply to each controlled group. As used in this section, the term “controlled group” shall have the same meaning that said term has in § 30044 of this title.
History —Jan. 31, 2011, No. 1, § 5023.07, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32448 - Violations

Any person who unduly avails him/herself of the benefits of § 32444 of this title shall be subject to the sanctions and penalties provided in §§ 33001 et seq. of this title.
History —Jan. 31, 2011, No. 1, § 5023.08, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32449 - Administration and regulations

(a) The Director of the Office of Industrial Tax Exemption is hereby empowered in § 10652 of this title, known as “Economic Incentives Act for the Development of Puerto Rico”, or any other analogous or subsequent law, to grant the exemption provided in § 32444 of this title. The determinations of the Director shall be final, unless it is otherwise provided by regulations.
(b) The Director is hereby empowered to revoke the exemption granted when the Secretary determines, through an investigation, that the concessionaire has failed to comply with the requirements and conditions thereof.
(c) The Director of the Office of Industrial Tax Exemption is hereby authorized to approve such rules and regulations that are necessary to enforce the provisions of § 32444 of this title, and once said regulations are promulgated, they shall have force of law.
History —Jan. 31, 2011, No. 1, § 5023.09, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32450 - Reconditioning of alcoholic beverages, spirits, and wines used as ingredients

(a) The taxes imposed in this part shall not apply to:
(1) Distilled spirits and alcoholic beverages, except wine and beer, produced in Puerto Rico, that have been or were shipped or exported and have been or were returned to the shipper, rectifier, or manufacturer who bottled them in Puerto Rico, for the correction of deficiencies in said spirits or alcoholic beverages or defects in their containers. The Secretary may give credit for the taxes paid on these distilled spirits and alcoholic beverages, which shall be applied to identical quantities of said products as provided by said official. The Secretary may authorize the destruction, under his/her supervision, of those alcoholic beverages produced in Puerto Rico with distilled spirits that have been or were shipped or exported and were returned to the shipper or rectifier who bottled them in Puerto Rico, which can be proved to his/her satisfaction that cannot be reconditioned, and shall give credit to the producer thereof for those taxes paid on said alcoholic beverages. He/she may likewise give credit for those taxes on alcoholic beverages, except wines and beer, manufactured or sold in Puerto Rico that are returned to the rectifier or bottler who bottled them to correct any deficiencies of said alcoholic beverages or defects in the containers, or when their destruction is authorized because they cannot be reconditioned, as provided by said official by regulations.
(2) Distilled spirits that are not derived from sugar cane, with forty percent (40%) or more alcohol content per volume, (eighty (80) or more degrees proof), and wine imported or introduced into Puerto Rico to be used in Puerto Rico as ingredients in the manufacturing of alcoholic beverages in a proportion that does not exceed two and a half percent (21/2%) per volume in the manufacture of rum, and five percent (5%) per volume in the manufacture of liquors other than rum, provided that is it shown to the satisfaction of the Secretary that said distilled spirits or wines are an integral part of said alcoholic beverages when they are appraised for the payment of the taxes established by this part or to dispose of them for tax exemption purposes.
(b) A credit, without interest, shall be granted for taxes paid on all alcoholic beverages that are withdrawn from the market because they are damaged and unfit for human consumption, and are therefore returned to the industrial plants or establishment of the dealer-distributor who imported or introduced them to Puerto Rico, to be destroyed under the immediate supervision of representatives of the Secretary, pursuant to the regulations approved by said official to such ends.
History —Jan. 31, 2011, No. 1, § 5023.10, 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 VI - Taxes on Alcoholic Beverages (§§ 32401 — 32570) › Chapter 1052 - Taxes and License Fees (§§ 32421 — 32454) › Subchapter C - Exemptions and Refunds (§§ 32441 — 32454) › § 32451 - Transfer of distilled spirits, wine or beer from one bonded warehouse to another of a distillery or factory

(a) Distilled spirits from the cistern and storage rooms of a distillery may be withdrawn in the manner provided by the Secretary, and be transferred without paying the taxes established by this part;
(1) To any public or private bonded warehouse established in accordance with this part.
(2) From a bonded warehouse to the processing room of a rectifier and from the processing room to a bonded warehouse of a rectifier.
(3) From a bonded warehouse or a processing room to a rectifying, bottling or bonded warehouse section.
(b) The manufacturers of wine and beer may also transfer their products from any bonded warehouse of their factory to a private or public bonded warehouse, as prescribed by the Secretary.
History —Jan. 31, 2011, No. 1, § 5023.11, retroactive to Jan. 1, 2011.