2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 5 - Inheritance and Gift Taxes (§§ 881 — 906) › Chapter 91 - Inheritance and Gift Taxes (§§ 881 — 906) › § 881 - Definitions

As used in §§ 881—905 of this title:
(a) Gift. — Includes the purely gratuitous, the onerous, and the remunerative gift, as defined by the Civil Code of Puerto Rico.
When a property is transferred for less than its fair value, either in money or money’s worth, or by exchange, the excess of the fair value of said property over the consideration in money or money’s worth, or thing for which said property was exchanged, shall be considered a gift, and shall be included in computing the total gifts made during the year.
The transfer described in the preceding paragraph of this subsection is also a gift when such transfer is made through the performance or liquidation by one party of the liability or obligation of a second party towards a third, or by any other means.
Any conveyance of property under the obligation on the part of the recipient to pay the donor any life annuity, even though the same be equivalent to the revenue derived from the value of the property, shall, if the recipient is a relative of the donor in the third degree of consanguinity or second of affinity, also be considered a gift. Any conveyance of property subject to usufruct reserve in favor of the donor shall be considered as a gift if the recipient is a relative of the donor in the third degree of consanguinity or second of affinity.
Gift also includes the remission in whole or in part of a debt or other obligation.
Gift is also the amount of any ordinary life or endowment insurance policy as well as the amount deriving from any life rent or annuity insurance contract, when the person paying the premiums on such policy is not the same person who will receive the proceeds of the policy upon the liquidation thereof.
Likewise, gift shall also be the amount payable to the heirs or beneficiaries or members of the Employees Retirement System of the Government of Puerto Rico and its instrumentalities, the Retirement and Annuity System for the Teachers of Puerto Rico, the Retirement System of the University of Puerto Rico, the Retirement System of the Employees of the Electric Power Authority of Puerto Rico, or any other system hereafter created by or under law, as well as any federal retirement system, by reason of death benefit of the participant or member of any such system.
Gift also includes any transfer in trust (fideicomiso).
A gift shall be such both when made directly and indirectly.
All transfers effected by inheritance, by will or intestacy is also a gift.
There shall not be considered to be gifts: (1) uncollectable debts, (2) the cancellation of uncollectable debts, and (3) lottery prizes paid to the purchaser of the lottery ticket.
(b) Recipient. — Means the person receiving a gift as defined in subsection (a), including heirs, legatees, and successors in interest.
(c) Donor. — Means the person who makes, who has the power to make or to withhold the gift, or to change the recipient thereof, and includes, in the case of property passing by inheritance, the decedent, whether the transfer be effected by will, by the laws of intestacy, or in accordance with the provisions of any deed or trust.
(d) Accumulated gifts. — Means the sum of the taxable gifts received by a given recipient since the effective date of this act.
(e) Taxable gift. — Means the amount of any gift minus the exemptions allowed by § 886 of this title.
In the case of an onerous gift there shall be deducted from the amount of the gift, for the purposes of the tax assessed thereon, the amount of the obligation imposed on the recipient; it being understood, that in the cases of contracts containing life annuity obligations, or subject to usufruct reserve in favor of the donor, a tax shall be levied, as provided in § 883 of this title, on the total value of the property as of the date of contract, if the recipients are relatives of the donor in the third degree of consanguinity or second of affinity.
(f) Secretary of the Treasury. — Means the Secretary of the Treasury of Puerto Rico.
(g) Collector. — Means the collector of internal revenue or any receiving officer appointed by the Secretary of the Treasury to collect the tax imposed by §§ 881—905 of this title.
(h) Taxpayer. — Means any person subject to the tax imposed by §§ 881—905 of this title.
(i) Fiduciary. — Means a guardian, trustee, executor, civil or judicial administrator, or any person acting in any fiduciary capacity in regard to another person.
History —Apr. 12, 1946, No. 303, p. 782, § 1; Apr. 25, 1950, No. 103, p. 262, § 1; Feb. 16, 1955, No. 4, p. 18, § 1; June 13, 1964, No. 49, p. 115, § 1.