P.R. Laws tit. 13, § 203
(a) The first nine thousand dollars ($9,000) as of the 2006 tax year; ten thousand dollars ($10,000) as of the 2007 tax year; and eleven thousand dollars ($11,000) as of the 2008 tax year, of the annual total amount of all pensions granted or to be granted in the future by the retirement systems or funds subsidized by the Government of Puerto Rico, and up to the same amount for annuities or pensions granted or to be granted by the Government of the United States of America, the instrumentalities or political subdivisions of both governments and by employers of private companies, are hereby exempted from all types of taxes, except that in the case of pensioners who are sixty (60) years of age or older, the amount of said exemption shall be of thirteen thousand dollars ($13,000) per year as of the 2006 tax year; fourteen thousand dollars ($14,000) per year as of the 2007 tax year; and fifteen thousand dollars ($15,000) per year as of the 2008 tax year.
Every pensioner or person who receives an annuity whose sole income is that which corresponds to the pension or annuity if the same is equal to or less than the amount exempted from taxes by this section, is hereby released from the obligation of filing an income tax return.
(b) Nothing herein provided shall deprive public employees in active service from the right granted by the Income Tax Act of 1954, as amended, in effect, to take as a deduction in their returns the individual contributions which are annually made to the different retirement systems subsidized by the Commonwealth of Puerto Rico.
History —June 29, 1968, No. 166, p. 531, §§ 1, 2; May 28, 1969, No. 11, p. 13, § 2; July 2, 1981, No. 26, p. 140, § 2; July 5, 1982, No. 3, p. 154, § 2; Oct. 6, 1987, No. 4, p. 855, § 2; Aug. 5, 1993, No. 49, § 3; Dec. 29, 2000, No. 459, § 1; Aug. 21, 2004, No. 225, § 1; Sept. 23, 2004, No. 459, § 1; Oct. 31, 2006, No. 231, § 1.