P.R. Laws tit. 13, § 10733
(a) The total net long-term capital gain generated from the sale of a newly-built property acquired by a qualified institutional investor as of November 1st, 2011, but on or before March 31st, 2013, provided that the same was optioned on or before December 31st, 2012, shall be exempt from the payment of income tax in Puerto Rico, including the alternate basic tax and the alternative minimum tax provided in the Code.
(b) Certification from the Department of the Treasury.— Once the information return regarding the sale of a newly-built property is received, the Department of the Treasury shall certify in writing, on or within thirty (30) days to the qualified institutional investor that the real property is newly-built property and that the net long-term capital gain generated from the sale of said property shall be exempt from Puerto Rico income taxes. The taxpayer shall enclose a copy of the certification issued by the Department of the Treasury with the income tax return corresponding to the year of the sale.
(c) General provisions applicable to this section.—
(1) In order to be entitled to claim the net long-term capital gain exemption provided in this section, the taxpayer shall report said gain as exempt in the income tax return corresponding to the year in which the gain was generated. The taxpayer shall enclose a copy of the certification issued by the Department of the Treasury in accordance with this section with his/her income tax return corresponding to the year of the sale.
(2) The benefits provided in this section shall only be available for the first qualified institutional investor that acquires a newly-built property, and shall not apply with respect to any other acquirer in a subsequent transfer.
(3) Payments related to the sale of the real property whose net long-term capital gain is subject to the exemption provided in this section, shall not be subject to withholding of income taxes at source.
(4) The benefits of this section shall apply to eligible taxpayers, regardless of whether they are residents or non-residents of Puerto Rico.
History —Nov. 21, 2011, No. 226, § 4, retroactive to Nov. 1, 2011.