P.R. Laws tit. 13, § 887
(a) Foreign taxes. — There shall be allowed as a credit against the tax imposed by § 883 of this title the amount of any succession, inheritance, or transfer tax imposed by the Government of the United States of America or any other foreign government; Provided, That if such tax is imposed by reason of the property transferred having a taxable status in such jurisdiction, the credit shall not exceed that proportion of the total tax which the value of such property bears to the gross amount of property transferred; Provided, further, that if such a tax is imposed by reason of the donor having a taxable status within the jurisdiction, said credit shall be allowed only if such jurisdiction does not tax transfers made by residents of Puerto Rico or grants a corresponding tax credit in such cases; and, Provided further, That if the tax is imposed by reasons of the recipient having a taxable status within such jurisdiction, said credit shall be allowed only if such jurisdiction does not tax transfers made to residents of Puerto Rico or grants a corresponding tax credit in such case.
(b) Property. — Where part or all of the property comprising the gift is derived, directly or indirectly, from property that has been subjected to inheritance, gift, or succession tax within twenty (20) years prior to the date of the gift, there shall be allowed as a credit an amount equal to five percent (5%) of such previous taxes for each year by which the intervening period is less than twenty (20) years or a credit of five percent (5%) of the tax paid on each previous gift for each year of the age reached by the recipient, when the donor of such previous gift has reached the age of fifty (50) years if alive, or was fifty (50) years old, if dead. The Secretary of the Treasury may by regulation establish rules according to which the origin of property given shall be established and the tax attributable thereto computed, and in the absence of any such rules, a gift shall be deemed to be derived from the most recent bequests or gifts received by the donor, to the extent not previously allocated to other gifts made by the donor, and the tax thereon shall be considered to be that part of the entire tax paid on such previous transfer which the value of the property included in the current gift bears to the total value of the property then transformed. Credit shall be allowed under this subsection for foreign taxes previously paid, subject to the limitations of the previous subsection. In no case shall the amount of the credit exceed that proportion of the tax payable on the current transfer which the amount of property previously taxed bears to the total amount of property transferred.
(c) Taxpayer to furnish proof. — In order to obtain the advantages of this section, the taxpayer shall furnish to the Secretary of the Treasury, in such form as the Secretary of the Treasury shall require, satisfactory proof of the actual payment of such taxes, and of the relation of the property upon which the tax to be credited was assessed to the property involved in the current transfer. If any tax for which a credit is claimed under this section is thereafter rebated, adjusted, or altered in any way, the taxpayer shall inform the Secretary of the Treasury of such change within thirty (30) days of such adjustment, and the tax provided in §§ 881—905 of this title reassessed accordingly.
(d) Tax considered part of gift. — The amount of any tax for which credit is claimed under this section shall be included as part of the gift for the purposes of computing the tax under §§ 883 and 884 of this title.
History —Apr. 12, 1946, No. 303, p. 782, § 5, retroactive to Mar. 22, 1946.