P.R. Laws tit. 13, § 30087
(a) Imposition of tax. — A tax shall be imposed, collected and paid, in lieu of any other taxes imposed by this part, a special twenty percent (20%) tax on the total amount received by any resident or nonresident individual (including, but without limitation, players, coaches and technical staff) for any compensation received for personal services rendered in Puerto Rico as employee or independent contractor of any team member of international associations or federations or associations or entities affiliated to such teams described in subsection (c).
(b) For purposes of this section, the amount of the compensation attributable to personal services rendered in Puerto Rico shall be determined on the basis of the proportion there is between the number of days of service in Puerto Rico over the total number of calendar days covered in the compensation agreement of said individual with the team, the association or affiliated entity that includes the days of service in Puerto Rico.
(c) The special tax provided by this section shall apply to compensation paid by the following international associations or federations:
(1) Major League baseball teams, including without it being understood as a limitation, the Office of the Commissioner of Major League Baseball, Major League Baseball Properties Inc., Major League Baseball Enterprises Inc., Baseball Television Inc., Major League Baseball Advanced Media, L.P. and their succeeding entities, [in connection with Major League baseball games in Puerto Rico.]
(2) [National Basketball Association of the United States, better known as “NBA”, including, but without] it being understood as a limitation, the National Basketball Association Commissioner’s Office, the NBA TV, NBA Latin America Inc., the Women’s National Basketball Association, better known as the “WNBA” or the National Basketball Development League, better known as the “NBDL” and any succeeding entity in connection with the holding of “NBA” basketball games in Puerto Rico.
(d) Requirement to deduct and withhold at the source and to pay and deposit the tax omposed by this section. — Any person regardless of the capacity in which he/she is acting, who has control, receipt, custody, disposal or payment of the amounts of compensation described in subsections (a) and (b) of this section, shall deduct and withhold said twenty percent (20%) tax and shall pay the amount of said tax thus deducted and withheld in the Internal Revenue Tax Collection Offices of Puerto Rico or deposit it in any of the banking institution designated as depositories of public funds that have been authorized by the Secretary to receive said tax. The tax shall be paid or deposited not later than the fifteenth day of the month following the date on which the payment subject to the twenty percent (20%) withholding imposed by this subsection was made. The amounts subject to the deduction and withholding imposed by this subsection shall not be subject to the provisions of § 30278 of this title.
(e) Failure to withhold. — If the withholding agent, in violation of the provisions of subsection (d), fails to withhold the twenty percent (20%) tax imposed by said subsection (d), the amount that should have been deducted and withheld (unless the recipient of the income pays the tax to the Secretary) shall be collected from the withholding agent, following the same procedure that would be used if it were a tax owed by the withholding agent. The recipient of the payment shall be required to pay the tax not withheld through the filing of a return within the term provided in § 30255 of this title and the payment of the tax pursuant to the provisions of § 30256 of this title. Notwithstanding the payment of the tax by the recipient, the withholding agent shall be subject to the penalties provided in subsection (h) of this section.
(f) Tax liability. — Any person who is required to deduct and withhold the twenty percent (20%) tax imposed by this section shall be liable to the Secretary for the payment of said tax and shall not be liable to any other person whatsoever for the amount of any payment thereof.
(g) Tax return. — Any person who is required to deduct and withhold the twenty percent (20%) tax imposed by this section shall file a return with regard to the same no later than February 28 of the year following the year in which the payment was made. Said return shall be filed with the Secretary and shall contain such information and be prepared in such form as established by the Secretary through regulations. Any person who files the return required by this subsection shall not be required to file the information return required by § 30278(j) of this title.
(h) Penalty. — See § 33111 of this title, for provisions related to penalties and additions to the tax.
History —Jan. 31, 2011, No. 1, § 1023.07, retroactive to Jan. 1, 2011.