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 1023 - Decedent’s Estates Belonging to Puerto Rico Nonresidents (§§ 31061 — 31069) › § 31066 - Taxable decedent’s estate

(a) Definition of taxable decedent’s income.— For purposes of the tax imposed by § 31061 of this title, the value of the taxable estate of any decedent who is a Puerto Rico nonresident shall be determined by deducting the items below from the value of that portion of his/her gross estate that, at the time of his/her death, is located in Puerto Rico:
(1) Indebtedness of the decedent, taxes and funeral expenses, among others.— That portion of the specific deductions or discounts from the gross decedent’s estate mentioned in § 31033 of this title, except for those established in subsection (a)(3) of said section, which the value of such part of the gross decedent’s estate located in Puerto Rico bears to the value of the total gross decedent’s estate, wherever located. Any deduction that is allowable in § 31033 of this title, in the case of a claim against the gross decedent’s estate that was based on a promise or agreement but was not contracted for an adequate or full consideration, whether money or its equivalent, shall be allowable under this clause up to the amount that would be allowable under clause (2), if such promise or agreement constituted a bequest or legacy.
(2) Bequests or legacies for public, charitable, and religious purposes:
(A) In general.— The amount of any bequest or legacy:
(i) To or for the use of the Government of the United States, the Government of Puerto Rico or any political subdivision thereof, exclusively for public purposes.
(ii) To or for the use of any domestic corporation organized and being operated exclusively for religious, charitable, scientific, museologic, veteran rehabilitation services, literary or educational purposes, including the encouragement of the arts and the prevention of domestic violence, hate crimes or child, elderly or animal abuse, no part of the net earnings of which inure to the benefit of any stockholder or private individual, and whose activities by no means include furthering propaganda or proselytism of a political-partisan nature or in favor or against any candidate for any elective office, insofar as the entity qualifies as an entity exempt from income taxes under §§ 30041 et seq. of this title or the United States Internal Revenue Code.
(iii) [(iii) To a fiduciary or fiduciaries, or to a society, fraternal order or association that functions under the system of lodges, always if said bequests or legacies are to be utilized within Puerto Rico by said fiduciary or fiduciaries, or by said society, fraternal order or association, exclusively for religious, charitable, scientific, museologic, veteran rehabilitation services, literary or educational purposes, or for the prevention of domestic violence, hate crimes or child, elderly or animal abuse, and always that and whose activities by no means include being an intervenor in or furthering propaganda or proselytism of a political-partisan nature or in favor or against any candidate for any elective office, insofar as the entity qualifies as an entity exempt from income taxes under §§ 30041 et seq. of this title or the United States Internal Revenue Code.]
(B) Payable inheritance taxes on bequests or legacies.— If the taxes imposed by § 31061 of this title, or any taxes on decedent’s estates, successions, inheritances or legacies are, be it by reason of the terms in the last will and testament or the laws of the jurisdiction that imposes such taxes, payable in whole or in part on the bequests or legacies otherwise deductible under this section, the amount deductible thereunder shall be the total sum of such bequests or legacies, minus the amount of such taxes.
(C) Limitation on the deduction.— The amount of the deduction allowed under this Section for any bequest or legacy, as specified in this clause, shall not exceed the value of the property transferred by bequest or legacy, which is includible in the gross decedent’s estate, as required under this chapter.
(D) Future interests.— If the bequest or legacy otherwise deductible under this section consists in whole or in part of future interests, then no deduction shall be allowed under this section for the portion of the total sum of said bequest or legacy pertaining to such future interests.
(3) Death benefits.— The amounts payable to heirs or beneficiaries as death benefits, as such term is defined in this part, shall be deducted from the gross decedent’s estate, up to a maximum amount of fifteen thousand dollars ($15,000).
(4) Mortgages.— The total sum of mortgages or other debts in connection with a specific property shall be deducted from the gross decedent’s estate, if the value of the decedent’s interest in such property, without deducting the value of such mortgages or other debts, is included in the gross decedent’s estate and is also subject to the limitations provided in § 31033(a)(3) of this title.
(5) Deduction for eligible investments.— The amount of the deduction for eligible investments referred to in § 31068 of this title.
(6) Fixed exemption.— The amount of the fixed exemption referred to in § 31069 of this title.
(b) Obligation to furnish copy of tax return liquidated in the other jurisdiction.— No deduction shall be granted under clauses (1), (2), (3), and (4) of subsection (a) of this section, unless the Administrator submits as a supplement to the tax return required under § 31121 of this title, a certified copy of the tax return as liquidated in the other jurisdiction. In default thereof, a sworn statement shall be submitted, listing the properties owned by the decedent in such other jurisdiction, as well as their value.
History —Jan. 31, 2011, No. 1, § 2030.06, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 127.