P.R. Laws tit. 13, § 10834
(a) General rule.— Shareholders, partners, or members of an eligible business that holds a decree granted under this chapter shall not be subject to income tax on distributions of dividends or benefits from utilities and benefits arising from income from the export of services of said eligible business.
Subsequent distributions of utilities and benefits arising from income from the export of services carried out by any entity shall also be exempt from all taxes.
(b) Coordination with the Code.— Distributions described in subsection (a) of this section shall be excluded from:
(1) The net income subject to the alternate basic tax of an individual for the purposes of § 30062(a)(2) of this title.
(2) The alternative minimum net income of a corporation for the purposes of § 30073(c)(1) of this title.
(3) The adjusted net income according to the books of a corporation for the purposes of § 30074(b)(1) of this title.
(c) Imposition of exempt distributions.— Distributions of dividends or benefits made by an eligible business that holds a decree granted under this chapter, even after said decree has expired, shall be deemed made from income derived from the export of services if, at the time of the distribution, it does not exceed the undistributed balance of utilities and benefits accrued and arising from income derived from the export of services, unless said eligible business, at the time of the statement, chooses to distribute, totally or partially, the dividend or benefit of other utilities or benefits. The amount, year of accrual, and nature of the distribution made from the utilities and benefits arising from income from the export of services shall be that which is designated by said business, eligible through a notice sent, together with the payment, to shareholders, members, or partners and to the Secretary of the Treasury, in an information statement, not later than February 28 of the year following the distribution.
In the case of corporations, limited liability companies, or partnerships that, on the date of the beginning of operations as eligible businesses, have utilities or benefits accrued, the distribution of dividends or benefits made as of that date shall be deemed to have been made from the undistributed balance of such utilities or benefits, but once such balance is exhausted by such distributions, the provisions of the first paragraph of this subsection shall apply.
History —Jan. 17, 2012, No. 20, § 6;, renumbered as § 7 on July 11, 2012, No. 138, § 6.