2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART III - Decedent’s Estate and Gifts (§§ 31001 — 31176) › Chapter 1022 - Decedent’s Estate; Residents of Puerto Rico (§§ 31011 — 31044) › Subchapter D - Credits Against Taxes (§§ 31041 — 31044) › § 31042 - Credits for inheritance taxes paid in other jurisdictions

(a) In general. — The amount of any taxes on decedents’ estates, successions or inheritances paid to the United States of America, or to a state, or territory or possession of the United States, or to any foreign country, in connection with any property located within such country, state, possession or foreign country, as the case may be, and included in the gross estate of the decedent (without including any such taxes paid in connection with the estate of a person other than the decedent), shall be credited against the taxes imposed by § 31011 of this title.
(b) Limitations on credit. — The credit provided in this section in connection with taxes paid to the United States or to a state, or territory or possession of the United States, or to any foreign country, shall not exceed whichever is the less amount among:
(1) Such amount which bears the same ratio to the amount of such tax actually paid to the country, state or possession in question, as the value of property which is:
(A) Located in such country, state, or possession,
(B) subject to such tax, and
(C) included in the gross decedent’s estate,
(2) And the amount which bears the same ratio to the amount of the tax imposed by § 31011 of this title (after deducting from such tax the credit provided by § 31041 of this title), as the value of the property which is:
(A) Located in such country, state or possession,
(B) subjected to the taxes of said jurisdiction, and
(C) included in the gross decedent’s estate and bears to the value of the entire gross decedent’s estate reduced by the aggregate amount of the deductions allowed in §§ 31032 and 31035 of this title.
(c) Valuation of property. —
(1) The indicated values in the ratio stated in subsection (b)(1) are the values determined for purposes of the tax imposed by such country, state or possession.
(2) The value referred to in the ratio stated in subsection (b)(2) are the values determined under this chapter; but in applying such ratio, the value of any property described in paragraphs (A), (B), and (C) of such subsection shall be reduced by such amount as will properly reflect, pursuant to the regulations promulgated by the Secretary, the deductions allowed in connection with such property in § 31035 of this title.
(d) Proof of credit. — The credit provided in this section shall be allowed only if the taxpayer submits to the Secretary the following:
(1) A certified copy of the receipt of payment of the taxes on decedent’s estate, succession or inheritance paid to the other jurisdiction;
(2) the description and valuation of the property in connection with which such taxes are imposed, and
(3) any other information necessary for the verification and computation of the credit.
History —Jan. 31, 2011, No. 1, § 2024.02, retroactive to Jan. 1, 2011.