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 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter E - Miscellaneous Provisions (§§ 30371 — 30375) › § 30375 - Rules for allocation of basis

(a) General rule. — Any increase or decrease in the adjusted basis of partnership property under § 30354(b) of this title (relating to the optional adjustment to the basis of undistributed partnership property) or § 30363(b) of this title (relating to the optional adjustment to the basis of partnership property in case of transfer of an interest in a partnership) shall, except as provided in subsection (b), be allocated:
(1) In a manner which has the effect of reducing the difference between the fair market value and the adjusted basis of partnership properties, or
(2) in any other manner permitted by regulations prescribed by the Secretary.
(b) Special rule. — In applying the allocation rules provided in subsection (a), increases or decreases in the adjusted basis of partnership property arising from a distribution of, or a transfer of an interest attributable to, property consisting of:
(1) Capital assets and property described in § 30141(a)(1)(B) of this title, or
(2) any other property of the partnership, shall be allocated to partnership property of a like character except that the basis of any such partnership property shall not be reduced below zero. If, in the case of a distribution, the adjustment to basis of property described in clause (1) or (2) is prevented by the absence of such property or by insufficient adjusted basis for such property, such adjustment shall be applied to subsequently acquired property of a like character, in accordance with regulations prescribed by the Secretary.
(c) No allocation of basis decrease to stock of corporate partner. — In making an allocation under subsection (a) of any decrease in the adjusted basis of partnership property under § 30354(b) of this title:
(1) No allocation shall be made to stock in a corporation (or any person related (within the meaning of §§ 30137(b) and 30337(b)(1) of this title) to such corporation) which is a partner in the partnership, and
(2) any amount not allocable to stock by reason of clause (1) shall be allocated under subsection (a) to other partnership property.
Gain shall be recognized to the partnership to the extent that the amount required to be allocated under clause (2) to other partnership property exceeds the aggregate adjusted basis of such other property immediately before the allocation required by clause (2).
History —Jan. 31, 2011, No. 1, § 1075.05, 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 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter F - Transitory Provisions (§§ 30376 — 30378) › § 30376 - Effect of the application of the provisions of §§ 30321 et seq. of this title

(a) Partnerships and limited liability companies subject to taxation as corporations pursuant to Subtitle A of the Internal Revenue Code of 1994.-Any partnership or limited liability company subject to taxation as a corporation pursuant to the provisions of Subtitle A of the Puerto Rico Internal Revenue Code of 1994, during the last taxable year beginning prior to January 1, 2011, and which for the first taxable year beginning after December 31, 2010, is subject to taxation under the provisions of this chapter shall be considered that, on the last day of the last taxable year beginning prior to January 1, 2011, transferred its assets and liabilities to its partners and members, as the case may be, in liquidation of the partnership or limited liability company and, immediately after, the partners and members, as the case may be, contribute the assets and liabilities distributed to a new partnership in a transaction subject to the provisions of § 30341 of this title. Except as provided in this subsection, no gain or loss shall be recognized to the partnership limited liability company and partners or members thereof, as the case may be, as a result of the distributions made under this subsection. Except as otherwise provided in this Code, such partnership or limited liability company shall be subject to the provisions of subsections (d), (e), (f), (g) and (h) of § 30583 of this title and § 30588 of this title.
(b) Partnerships and limited liability companies subject to taxation under the provisions of Subchapter B of Chapter 2 or under Subtitle A of the Puerto Rico Internal Revenue Code of 1994, pursuant to § 30076 of this title.- Any partnership or limited liability company that, prior to the taxable year during which it is subject to taxation under this chapter, was subject to taxation under the provisions of Subchapter B of Chapter 2 or under Subtitle A of the Puerto Rico Internal Revenue Code of 1994 pursuant to § 30076 of this title shall be considered that, on the last day of such year, transferred its assets and liabilities to its partners or members, as the case may be, in liquidation of the partnership or limited liability company in a transaction subject to the provisions of § 30144(q) of this title, and immediately after, the members or partners, as the case may be, contributed the assets and liabilities distributed to the new partnership in a transaction subject to the provisions of § 30341 of this title. Except as otherwise provided in this Code, such partnership or limited liability company shall be subject to the provisions of subsections (d), (e), (f), (g) and (h) of § 30583 of this title and § 30588 of this title.
History —Jan. 31, 2011, No. 1, § 1076.01, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 92.
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 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter F - Transitory Provisions (§§ 30376 — 30378) › § 30377 - Special transition rules for partnerships and limited liability companies subject to the provisions of this chapter

(a) Any partnership or limited liability company subject to taxation as a corporation pursuant to the provisions of Subtitle A of the Puerto Rico Internal Revenue Code of 1994, during the last taxable year beginning prior to January 1, 2011, and which for the first taxable year beginning after December 31, 2010, would have been subject to taxation under the provisions of this chapter shall, not later than December 31, 2011, carry out a reorganization under § 30144(g)(1)(F) of this title in order to change its form of organization to a corporation and to carry back, for purpose of this part, the effect of said reorganization to the first day of the first taxable year beginning after December 31, 2010, subject to the requirements established by the Secretary through regulations, circular letter or other general communication.
History —Jan. 31, 2011, No. 1, added as § 1076.02 on Dec. 10, 2011, No. 232, § 93.
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 1009 - Partnerships and Partners (§§ 30321 — 30378) › Subchapter F - Transitory Provisions (§§ 30376 — 30378) › § 30378 - Special transition rules for partners or members of partnerships and limited liability companies not engaged in trade or business in Puerto Rico

(a) In the case of partnerships or limited liability companies not engaged in trade or business in Puerto Rico subject to taxation as a partnership under the United States Internal Revenue Code of 1986, Title 26 of the United States Code, as amended, or similar provision of a foreign country, the partner or member shall report in Puerto Rico the income as reported by said partnership or limited liability company for purposes of federal or foreign country income taxes.
History —Jan. 31, 2011, No. 1, added as § 1076.03 on Dec. 10, 2011, No. 232, § 94.
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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter A - Employee Trusts (§§ 30391 — 30396) › § 30396 - Transitory provisions for individual retirement accounts

(a) General rule.— In the event that any amount accrued and undistributed in an individual retirement account on which, and in accordance with Sections 1169A and 1169C of the Puerto Rico Internal Revenue Code of 1994, as amended, the taxpayer opts to pay the ten-percent (10%) or five-percent (5%) tax in advance, as the case may be, the basis of the taxpayer in such individual retirement account shall increase by the amount in which the taxpayer opted to pay such tax in advance.
History —Jan. 31, 2011, No. 1, § 1081.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 100.
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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter B - Real Estate Investment Trusts (§§ 30401 — 30403) › § 30403 - Constructive ownership of stock, net assets or gains

(a) In general. — For purposes of this part:
(1) Attribution from partnerships, estates, trusts, and corporations. —
(A) From partnerships and estates. — Stock owned directly or indirectly by or for a partner or beneficiary of an estate shall be considered as owned by the partnership or estate.
(B) For trusts. —
(i) Stock owned directly or indirectly by or for a beneficiary of a trust (other than a trust exempted from taxation under § 30391 of this title) shall be considered as owned by the trust, unless the interest of the beneficiary in the trust is a remote contingent interest. For purposes of this subparagraph, a contingent interest shall be considered as remote if, under the utmost exercise of discretion by the trustee in favor of the beneficiary, the value of said interest, computed actuarially, is of five percent (5%) or less of the value of the property of the trust.
(ii) Stock owned directly or indirectly by or for a person who is considered to be the owner of any portion of a trust under §§ 30411—30419 of this title (related to grantors and others treated as owners) shall be considered as owned by the trust.
(iii) For corporations. — If ten percent (10%) or more in value of the stock in a corporation is owned directly or indirectly by or for any person, it shall be considered that said corporation possesses the stock owned directly or indirectly by or for said person.
History —Jan. 31, 2011, No. 1, § 1082.03, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30411 - Imposition of tax

(a) Application of tax. — The tax imposed by this part on individuals shall apply to the income of estates or of any kind of property held in trust, including:
(1) Income accumulated in trust for the benefit of unborn or unascertained persons or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust;
(2) income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of a minor which is to be held or distributed as the court may direct;
(3) income received by estates during the period of administration or settlement of the estate, and
(4) income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated.
(b) Computation and payment. — The tax shall be computed upon the net income of the estate or trust, and shall be paid by the fiduciary, except as provided in § 30415 of this title, related to revocable trusts, and § 30416 of this title, related to income for benefit of the grantor.
(c) Notwithstanding the provisions of this section, any trust that, as provided by law or regulation under the Federal Internal Revenue Code of 1986, United States Code Title 26, as amended, or by an analogous provision of a foreign country, is treated as a grantor trust for purposes of the federal government, shall also be treated as a grantor trust for purposes of this part, subject to the provisions of § 30416 of this title.
History —Jan. 31, 2011, No. 1, § 1083.01, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30413 - Credits against net income

For purposes of the tax imposed under § 30061 of this title an estate shall be allowed, in lieu of the exemptions granted under § 30138(a) of this title, a credit of one thousand three hundred dollars ($1,300) against its net income, and a trust shall be allowed, in lieu of the exemptions granted under § 30138(a) of this title, a credit of one hundred dollars ($100) against its net income.
History —Jan. 31, 2011, No. 1, § 1083.03, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30414 - Different taxable years

If the taxable year of a legatee, heir, or beneficiary is different from that of the estate or trust, the amount which he/she is required, under § 30412(a) of this title to include when computing his/her net income shall be based upon the income of the estate or trust for any taxable year of the estate or trust ending within or with the taxable year of such legatee, heir, or beneficiary.
History —Jan. 31, 2011, No. 1, § 1083.04, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30415 - Revocable trusts

Where, at any time, the power to revest in the grantor title, to any portion of the corpus of the trust is exercisable by:
(1) The grantor, either alone or together with any person not having a substantial adverse interest in the disposition of such portion of the corpus or the income therefrom, or
(2) by any person not having a substantial adverse interest in the disposition of such portion of the corpus or the income therefrom, then the income of such portion of the trust shall be included when computing the net income of the grantor.
History —Jan. 31, 2011, No. 1, § 1083.05, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30416 - Income for the benefit of the grantor

(a) Where any part of the income of a trust:
(1) Is or, at the discretion of the grantor or in any person not having a substantial adverse interest in the disposition of such portion of the income, may be held or accumulated for future distribution to the grantor; or
(2) may, at the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such portion of the income, be distributed to the grantor, or
(3) is, or at the discretion of the grantor or any person not having a substantial adverse interest in the disposition of such portion of the income may be, applied to the payment of premiums for insurance policies on the life of the grantor, except insurance policies irrevocably payable for the purposes and in the manner specified in § 30135(a)(3) of this title, related to the deduction for charitable contributions, then such portion of the income of the trust shall be included when computing the net income of the grantor.
(b) As used in this section, the term “at the discretion of the grantor” means at the discretion of the grantor, either alone or together with any person not having a substantial adverse interest in the disposition of the portion of the income in question.
(c) The income of a trust shall not be considered taxable to the grantor under subsection (a) or under any other provision of this subtitle merely because such income, at the discretion of another person, the trustee, or the grantor acting as trustee or co-trustee, may be applied or distributed for the support or maintenance of a beneficiary whom the grantor is legally obligated to support or maintain, except to the extent that such income is so applied or distributed. In cases where the amounts so applied or distributed are paid out of the corpus or out of sources other than income for the taxable year, such amounts shall be considered paid out of income to the extent of the income of the trust for such taxable year which is not paid, credited, or to be distributed under § 30411 of this title and which is not otherwise taxable to the grantor.
History —Jan. 31, 2011, No. 1, § 1083.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 104.
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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30417 - Taxes of the United States, possessions of the United States, and foreign countries

The amount of income or excess profits of taxes imposed by the United States, possessions of the United States, and foreign countries shall be allowed as credit against the tax of the beneficiary of an estate or trust up to the limit provided in § 30201 of this title.
History —Jan. 31, 2011, No. 1, § 1083.07, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30418 - Net operating losses

The benefit of the deduction for net operating losses allowed by § 30104(a)(11) of this title shall be allowed to estates and trusts under regulations prescribed by the Secretary.
History —Jan. 31, 2011, No. 1, § 1083.08, 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 1010 - Estates and Trusts (§§ 30391 — 30419) › Subchapter C - Other Estates and Trusts (§§ 30411 — 30419) › § 30419 - Income from an estate or trust in cases of divorce or separation

(a) Inclusion in gross income. — There shall be included in the gross income of a spouse legally separated under a decree of divorce, or of separate maintenance (or who is separated from his/her spouse under a valid written separation agreement) or of a spouse who, by reason of being separated from his/her spouse is required, in accordance with the provisions of § 30241 of this title, to file a separate return, the amount of income of any trust that such spouse is entitled to receive and which, except for the provisions of this section, would be includable in the gross income of the other spouse. This amount shall not, despite §§ 30415 and 30416 of this title or any other provision of this part, be includable in the gross income of such other spouse. This subsection shall not apply to that part of any such income from the trust which the terms of the decree of divorce or of separate maintenance or the valid written separation agreement or trust instrument or any agreement between the parties appearing in a notarized document, in case of separation, fix, in terms of an amount of money from a portion of such income, as a sum which is payable for the support of minor children of said spouse. For purposes of this subsection, in the event that such income is less than the amount specified in the decree, in the trust instrument or in the agreement, as the case may be, such income shall be considered a payment for such support to the extent of the sum paid for these purposes.
(b) Spouse considered as beneficiary. — For purposes of computing the net income of the estate or trust and the net income of the spouse to whom § 30112 of this title or subsection (a) of this section refers, said spouse shall be considered as the beneficiary specified in this subchapter. A payment in accordance with § 30112 of this title to any part of which the provisions of this subchapter are applicable shall be included in the gross income of the beneficiary in the taxable year in which said part of the payment must be included according to this subchapter.
History —Jan. 31, 2011, No. 1, § 1083.09, 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 II - Income Taxes (§§ 30041 — 30622) › Chapter 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30432 - Gross income

In the case of a nonresident alien individual, the gross income includes only:
(a) The gross income derived from sources within Puerto Rico, and
(b) the gross income effectively connected with the conduct of trade or business within Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1091.02, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30433 - Deductions

(a) General rule. — In the case of a nonresident alien individual, deductions shall be allowed only for purposes of § 30431(b) of this title and, except as provided in subsection (b), only if, and to the extent that they are connected with income effectively connected with the conduct of trade or business in Puerto Rico. The proper apportionment and allocation of deductions for these purposes shall be determined by rules and regulations prescribed by the Secretary.
(b) Exceptions. — The following deductions shall be allowed whether related or not with income effectively connected with the conduct of trade or business within Puerto Rico:
(1) Losses. — The deduction allowed by § 30135(a)(2) of this title, for losses not connected with the trade or business if incurred in transactions entered into for profit, shall be allowed whether or not connected with income from sources within Puerto Rico, but only if the profit, if such transaction had resulted in a profit, would have been taxable under this part.
(2) Charitable contributions or gifts. — A deduction shall be allowed for contributions as provided by § 30135(a)(3) of this title, whether or not connected with income which is effectively connected with the conduct of trade or business within Puerto Rico, but only if such contributions or gifts are made to domestic corporations or to community chests, funds, or foundations created in Puerto Rico (provided that no portion of the net earnings results in the benefit of any private shareholder or individual), or to the special fund for vocational rehabilitation authorized by the Vocational Rehabilitation Act. The amount so allowable, as a whole, shall not exceed fifty percent (50%) of the adjusted gross income which is effectively connected with the conduct of trade or business within Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1091.03, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30434 - Personal exemptions and for dependents

In the case of a nonresident alien individual, no exemptions under § 30138 of this title, shall be allowed.
History —Jan. 31, 2011, No. 1, § 1091.04, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30435 - Allowance of deductions

A nonresident alien individual shall receive the benefit of the deductions allowed under this part only if he/she files or causes to be filed with the Secretary a true and accurate return of his/her total income received from sources inside Puerto Rico, and his/her income effectively connected with the conduct of trade or business in Puerto Rico, in the manner prescribed in this part; including therein all the information that the Secretary deems necessary to determine said deductions. This section shall not be interpreted to deny the credits provided in §§ 30221, 30222, 30224, 30225, 30227, 30228 and 30229 of this title.
History —Jan. 31, 2011, No. 1, § 1091.05, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30436 - Credits against tax

An nonresident alien individual engaged in trade or business within Puerto Rico during the taxable year shall be allowed the credits against the tax, for taxes paid to the United States, possessions of the United States, and foreign countries, with respect to income from sources outside Puerto Rico effectively connected with the conduct of trade or business in Puerto Rico allowed by § 30201 of this title.
History —Jan. 31, 2011, No. 1, § 1091.06, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30437 - Returns

(a) Time to file.— In the case of an nonresident alien individual who has no income effectively connected with the conduct of trade or business in Puerto Rico, or with respect to whose wages, as defined in § 30271(a) of this title, withholding under said section is not applicable, the return, in lieu of the time prescribed in § 30256 of this title, shall be filed on or before the fifteenth (15th) day of the sixth (6th) month following the close of the fiscal year, or, if the return is filed on the basis of the calendar year, then on or before the fifteenth (15th) day of June.
(b) Exemption from requirement to file.— Subject to such conditions, limitations, and exceptions, and under such regulations promulgated by the Secretary, nonresident alien individuals not engaged in trade or business in Puerto Rico subject to the tax imposed by § 30431(a) of this title, as well as those treated as engaged in trade or business in Puerto Rico solely by virtue of § 30331 of this title, may be exempt from the requirement to file income tax returns if the income tax withheld satisfies their tax liability in Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1091.07, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 105.
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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter A - Nonresident Alien Individuals (§§ 30431 — 30438) › § 30438 - Payment of tax

(a) Time of payment.— In the case of a nonresident alien individual not engaged in trade or business within Puerto Rico with respect to whose wages, as defined in § 30271(a) of this title, withholding under said section is not applicable, the total amount of tax imposed by this part shall be paid, in lieu of the time prescribed in § 30256(a) of this title, on the fifteenth (15th) day of June following the close of the calendar year, or, if the return should be filed on a fiscal year basis, then on the fifteenth (15th) day of the sixth (6th) month following the close of the fiscal year.
(b) Withholding at source.— The withholding at source of tax on income of nonresident alien individuals not engaged in trade or business in Puerto Rico shall be as provided in § 30278 of this title.
History —Jan. 31, 2011, No. 1, § 1091.08, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 106.
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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30443 - Deductions

(a) In general. — In the case of a foreign corporation, deductions shall be allowed only for purposes of § 30431(b) of this title and, except as provided in subsection (b) and in § 30444 of this title, only if and to the extent that they are effectively connected with income which is effectively connected with the conduct of trade or business within Puerto Rico. Proper apportionment and allocation of deductions for these purposes shall be determined as per the rules and regulations prescribed by the Secretary.
(b) Charitable contributions. — Deductions for charitable contributions allowed by § 30130 of this title shall be allowed whether or not connected with income which is effectively connected with the conduct of trade or business within Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1092.03, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30444 - Requirements for allowing deductions and credits

(a) A foreign corporation shall receive the benefit of the deductions and credits allowed to it only if it meets each of the following requirements:
(1) Files or causes to be filed with the Secretary a true and accurate return of its total income which is effectively connected with the conduct of trade or business within Puerto Rico, in the manner prescribed in this part; including therein all the information that the Secretary may deem necessary for the computation of such deductions and credits.
(2) The corporation shall have available at all times the accounting books containing the operations of branches or divisions in Puerto Rico, including all the pertinent documents evidencing such deductions and the basis used for the apportionment and allocation of deductions to income effectively connected with the conduct of trade or business within Puerto Rico.
(3) The corporation shall accompany its income tax return with financial statements in relation to the assets and liabilities effectively related to its trade or business in Puerto Rico in accordance with § 30255 of this title.
History —Jan. 31, 2011, No. 1, § 1092.04, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 109.
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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30445 - Credits against tax

(a) Credits allowed by § 30201 of this title. — Foreign corporations shall be allowed credits against tax for taxes paid to the United States, to possessions of the United States, and to foreign countries, with respect to income from sources outside Puerto Rico effectively connected with the conduct of trade or business in Puerto Rico, allowed by § 30201 of this title.
(b) Credit for investment increase. — Foreign corporations shall be allowed the investment increase tax credit provided in §§ 30205 and 30441(a)(2)(C) of this title.
History —Jan. 31, 2011, No. 1, § 1092.05, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30446 - Returns

(a) Time to file.— In the case of a foreign corporation not having any office or place of business in Puerto Rico, the return, in lieu of the time prescribed in § 30256(a)(1) of this title, shall be filed on or before the fifteenth (15th) day of the sixth (6th) month following the close of the fiscal year, or if the return is filed on the basis of the calendar year, on or before the fifteenth (15th) day of June. If any corporation has no office or place of business in Puerto Rico but has an agent in Puerto Rico, the return shall be filed by the agent.
(b) Exemption from requirement to file.— Subject to such conditions, limitations, and exceptions, and under such regulations promulgated by the Secretary, corporations and partnerships subject to the tax imposed by § 30441(a)(1)(A) of this title, as well as those treated as engaged in trade or business in Puerto Rico solely by virtue of § 30331 of this title, may be exempt from the requirement to file income tax returns if the income tax withheld satisfies their tax liability in Puerto Rico.
History —Jan. 31, 2011, No. 1, § 1092.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 110.
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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30447 - Payment of tax

(a) Time of payment. — In the case of a foreign corporation not having any office or place of business in Puerto Rico, the total amount of tax imposed by this part shall be paid, in lieu of the time prescribed in § 30256(a) of this title on the fifteenth (15th) day of June following the close of the calendar year, or if the return is made on the basis of a fiscal year, then on the fifteenth (15th) day of the sixth (6th) month following the close of the fiscal year.
(b) Withholding at source. — The withholding at source of tax on income of foreign corporations and partnerships shall be as provided in § 30281 of this title.
History —Jan. 31, 2011, No. 1, § 1092.07, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter B - Foreign Corporations (§§ 30441 — 30448) › § 30448 - Educational or charitable foreign organizations and certain other exempt organizations

For special provisions regarding unrelated business net income of foreign educational, charitable, and certain other exempt organizations, see § 30482(a) of this title.
History —Jan. 31, 2011, No. 1, § 1092.08, 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 1011 - Foreign Corporations (§§ 30431 — 30451) › Subchapter C - Foreign Partnerships (§ 30451) › § 30451 - Treatment of foreign partnerships; tax on partners

(a) In the case of foreign partnerships engaged in trade or business in Puerto Rico, it shall be understood that a partner is engaged in trade or business in Puerto Rico in his/her distributive share of the partner’s interest in such partnership.
(b) The foreign partnership shall be subject to:
(1) The provisions of §§ 30321 et seq. of this title related to the determination of the distributive share of a partner in the income and expenses of the partnership,
(2) 30245 of this title, related to the requirement of estimated tax payment allocable to the distributive share of the partner’s interest in a partnership,
(3) 30243 of this title, related to the requirement for partners to file partnership and information returns.
History —Jan. 31, 2011, No. 1, § 1093.01, 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 1012 - Nonprofit Organizations (§§ 30471 — 30487) › Subchapter B - Taxation Of Business Income Of Certain Exempt Organizations And Denial Of Exemption For Certain Prohibited Transactions And Improperly Accumulating Surplus (§§ 30481 — 30487) › § 30481 - Imposition of tax on unrelated business income of charitable organizations, and with other purposes

(a) Charitable and other organizations with other purposes, taxable at corporation rates.—
(1) Imposition of tax.— There shall be imposed, for each taxable year, on the unrelated business net income (as defined in § 30482 of this title) of every organization described in clause (2) a normal tax of twenty percent (20%) of said amount, and a surtax (computed at the rates and as provided in § 30072 of this title) or an alternative minimum tax (computed at the rates and as provided in § 30073 of this title) on the unrelated business net income in excess of the credits provided in §§ 30072(d) or 30139 of this title. In computing the surtax or the minimum tax for purposes of this clause, the term “net income subject to surtax” or “alternative minimum net income” as used in § 30072 or 30073 of this title shall be read as “unrelated business net income”.
(2) Organizations subject to tax.— The tax imposed by clause (1) shall apply in the case of any organization (other than a trust as described in subsection (b) of this section) which is exempt, except as provided in this subchapter, from taxation under this part by reason of § 30471(a) of this title (except for clauses (1), (3), and (7) of said subsection); § 30391(a) of this title; or § 30392(e) of this title. Said tax shall also apply in the case of a corporation described in § 30471(a)(9)(A) of this title if the income is payable to an organization which in itself is subject to the taxes imposed by clause (1) of this subsection or to a church or a convention or association of churches.
(b) Tax on charitable and other trusts.—
(1) Imposition of tax.— There is hereby imposed, for each taxable year, on the unrelated net business income of every trust described in clause (2) a tax computed as provided in § 30061 of this title. When making such computation for purposes of this section, the term “each individual’s net income in excess of the credits against net income provided in § 30138 of this title”, as used in § 30061 of this title, shall be read as “unrelated net business income”.
(2) Charitable and other trusts subject to tax.— The tax imposed by clause (1) of this subsection shall apply in the case of any trust which is exempt, except as provided in this subchapter, from taxation under this part by reason of §§ 30471(a)(2)(A), 30471(a)(4)(D), 30391(a) or 30392(a) of this title, and which, if it were not for such exemption, would be subject to the tax imposed by §§ 30391 et seq. of this title related to estates and trusts.
History —Jan. 31, 2011, No. 1, § 1102.01, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 112.
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 1012 - Nonprofit Organizations (§§ 30471 — 30487) › Subchapter B - Taxation Of Business Income Of Certain Exempt Organizations And Denial Of Exemption For Certain Prohibited Transactions And Improperly Accumulating Surplus (§§ 30481 — 30487) › § 30483 - Unrelated trade or business

(a) General rule.— The term “unrelated trade or business” means, in the case of an organization subject to the tax imposed by § 30481 of this title, any trade or business the conduct of which is not substantially related to the exercise or performance by that organization of its charitable, educational, or other purpose or function constituting the basis for its exemption under § 30471 of this title, except that said term does not include any trade or business:
(1) In which substantially all the work in carrying on such trade or business is performed for the organization without compensation; or
(2) which is carried on, in the case of an organization described in § 30471(a)(2) of this title, by the organization primarily for the convenience of its members, students, patients, officers, or employees, or
(3) which is the selling of merchandise, substantially all of which has been received by the organization as gifts or contributions.
(b) Special rule for trusts.— The term “unrelated trade or business” means, in the case of:
(1) A trust computing its unrelated business net income under § 30482 of this title for purposes of § 30412(e)(1) of this title; or
(2) a trust described in § 30471(a)(4)(D), § 30391(a) or § 30392(a) of this title which is exempt from tax; any trade or business regularly carried on by such trust.
(c) Special rule for certain advertising businesses.— If an advertising business carried on by an organization is, without regard to this subsection, an unrelated trade or business during a taxable year beginning January 1, 1962, but before the beginning of the third succeeding taxable year the business is carried on by the organization (or by a successor who acquired such business in a liquidation which constituted a tax-free exchange under § 30144(b)(6) of this title) in such a manner that the conduct thereof is substantially related to the exercise or performance by such organization (or such successor) of its educational or other purpose or function described in § 30471(a)(2) of this title, such advertising business shall not be considered, for the taxable year, as an unrelated trade or business.
History —Jan. 31, 2011, No. 1, § 1102.03, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 114.
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 1012 - Nonprofit Organizations (§§ 30471 — 30487) › Subchapter B - Taxation Of Business Income Of Certain Exempt Organizations And Denial Of Exemption For Certain Prohibited Transactions And Improperly Accumulating Surplus (§§ 30481 — 30487) › § 30485 - Taxes of the United States, possessions of the United States and foreign countries

The amount of income, war profit, and excess profit taxes imposed by the United States, any possession of the United States, or any foreign country, shall be allowed as a credit against the tax of an organization subject to taxation under § 30481 of this title to the extent provided in § 30201 of this title, and in the case of the tax imposed by § 30481 of this title, the term “normal tax net income” and the term “net income” as used in § 30201 of this title shall be read as “unrelated business net income”.
History —Jan. 31, 2011, No. 1, § 1102.05, 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 1012 - Nonprofit Organizations (§§ 30471 — 30487) › Subchapter B - Taxation Of Business Income Of Certain Exempt Organizations And Denial Of Exemption For Certain Prohibited Transactions And Improperly Accumulating Surplus (§§ 30481 — 30487) › § 30487 - Denial of exemption

In the case of any organization described in § 30471(a) of this title to which § 30486 of this title is applicable, the exemption shall be denied for the taxable year if the amounts accumulated out of income during the taxable year or any prior taxable year and not actually paid out by the end of the taxable year:
(1) Are unreasonable in amount or duration in order to carry out the charitable, educational, or other purpose or function constituting the basis for exemption under § 30471(a) of this title; or
(2) are used to a substantial degree for purposes or functions other than those constituting the basis for exemption under § 30471(a) of this title, or
(3) are invested in such a manner as to jeopardize the carrying out of the charitable, educational, or other purpose or function constituting the basis for exemption under § 30471(a) of this title.
Subsection (1) shall not apply to income attributable to property of a decedent dying before January 1, 1962, which is transferred under his/her will to a trust created by that will. In the case of a trust created by the will of a decedent dying on or after January 1, 1962, if income is required to be accumulated pursuant to the mandatory terms of the will creating the trust, subsection (1) shall apply only to income accumulated during a taxable year of the trust beginning more than twenty-one (21) years after the date of death of the last life being designated in the trust instrument.
History —Jan. 31, 2011, No. 1, § 1102.07, 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 1013 - Other Special Taxpayers (§§ 30501 — 30622) › Subchapter A - Insurance Companies (§§ 30501 — 30512) › § 30501 - Taxation on domestic life insurance companies

(a) Definition. — As used in §§ 30501—30503 of this title, the term “life insurance company” means an insurance company engaged in the business of issuing life insurance and annuity contracts, including combined with life, health and accident insurance, whose reserve funds for the fulfillment of said contracts comprise more than fifty percent (50%) of its total reserve funds.
(b) Imposition of tax. —
(1) In general. — There shall be imposed, collected, and paid for each taxable year upon the net income subject to normal tax as defined in subsection (c), and upon the net income subject to surtax as defined in subsection (d), of every life insurance company, the same tax rates imposed on other corporations in §§ 30071(b) and 30072(b) of this title.
(c) Net income subject to normal tax. — For purposes of this section, the term “net income subject to normal tax” means the net income as defined in § 30503 of this title.
(d) Net income subject to surtax. — For purposes of this section, the term “net income subject to surtax” means the net income subject to normal tax as defined in subsection (c), minus the deduction provided in § 30072(d) of this title.
(e) Alternative minimum tax. — Domestic life insurance companies shall be subject to the provisions related to alternative minimum tax for corporations.
History —Jan. 31, 2011, No. 1, § 1111.01, retroactive to Jan. 1, 2011.