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 1004 - Tax Rates (§§ 30061 — 30090) › Subchapter B - Tax on Corporations (§§ 30071 — 30076) › § 30075 - Surtax on corporations improperly accumulating surplus or benefits

(a) Imposition of tax. — If a corporation, however created or organized, is formed or utilized for the purpose of avoiding the imposition of the surtax upon its shareholders or the shareholders of any other corporation by permitting earnings and profits to accumulate instead of being divided or distributed, there shall be imposed, collected, and paid for each taxable year, in addition to other taxes imposed by this part, upon the net income of such corporation, a surtax equal to fifty percent (50%) of the amount of the “net income determined by § 30075 of this title”.
(b) Prima facie evidence. — The fact that any corporation is a mere holding or investment company shall be prima facie evidence of the purpose to avoid the income tax with respect to shareholders.
(c) Evidence of purpose. — The fact that the earnings and profits of a corporation are permitted to accumulate beyond the reasonable needs of the business shall be determinative of the purpose to avoid the income tax with respect to shareholders, unless the corporation by the preponderance of the evidence shall prove to the contrary. In determining the reasonable needs of the business, exempt income or income that has been exempt, referred to in subsection (f), shall not be taken into account.
(d) Definition of net income determined by § 30075 of this title. — As used in this part, the term “net income determined by § 30075 of this title” means the net income computed without the capital loss carry over benefit set forth in § 30141(e) of this title, of a taxable year beginning after June 30, 1995, and computed without the net operating loss deduction set forth in § 30134 of this title, minus the sum of:
(1) Taxes. — Income taxes imposed by the Government of Puerto Rico, paid or accrued during the taxable year up to the amount not allowable as a deduction by § 30124 of this title; but not including the tax imposed by this section or the corresponding section of a prior income tax law.
(2) Disallowed charitable contributions. — Contributions or gifts payments made within the taxable year, not otherwise allowed as a deduction, to or for the use of donees described in § 30130 of this title, for the purposes therein specified. For purposes of the preceding sentence, payment of any contribution or gift shall be considered as made within the taxable year if and only if it is considered for purposes of § 30130 of this title, as made within such year.
(3) Disallowed losses. — Losses from sales or exchanges of capital assets which are disallowed as a deduction by § 30141(d) of this title.
(e) Income not placed on annual basis. — Section 30180 of this title shall not apply in the computation of the tax imposed by this section.
(f) Exempt income. — The term “net income determined by § 30075 of this title” shall not include the income exempt or that has been exempt from taxes under §§ 10641 et seq. of this title, known as the “Economic Incentives Act for the Development of Puerto Rico”, or under §§ 6001 et seq. of Title 23, known as the “Puerto Rico Tourist Development Act”, and any other preceding or subsequent similar law.
(g) The surtax to which this section refers shall not apply to any corporation having at least eighty percent (80%) of its “net income determined by § 30075 of this title” invested in: obligations of the Government of Puerto Rico or any of its instrumentalities or political subdivisions.
History —Jan. 31, 2011, No. 1, § 1022.05, retroactive to Jan. 1, 2011.