P.R. Laws tit. 26, § 702
(1) Except as otherwise provided in this section, every insurer shall pay to the Secretary of the Treasury of the Commonwealth of Puerto Rico, through the Office of the Commissioner, a six percent (6%) tax on premiums and of three percent (3%) on annuity remunerations, as provided in clause (b) of this subsection received by the insurer during each semester of the calendar year on insurance transacted in Puerto Rico or covering risks resident, located or to be executed in Puerto Rico, wherever transacted. Said tax shall be payable on or before March 31 of the following calendar year. The insurer shall determine his/her tax on premiums as follows:
(a) With respect to life and disability insurance, the tax shall be determined after deducting dividends, returned premiums, amount refunded, or the amount of reductions in premiums allowed to holders of industrial life policies for payment of premiums directly to an office of the insurer.
(b) With respect to annuity contracts, such tax shall be in the amount of three percent (3%) of such considerations received on direct business after deduction of dividends and returned annuity considerations.
(c) With respect to any other kinds of insurance or contracts, the tax shall be determined after deducting the returned premiums, except as provided in clause (d) of this subsection.
(d) As to insurers other than life insurers, who on issuing their policies require from their insured the payment of uniform premium deposits, based upon the class of risks, but independent of the term of such policies, such tax shall be determined taking into consideration the premium deposits appertaining to such policies as were in force after deducting from said deposits the unused or unabsorbed portion. Said unused or unabsorbed portion shall be computed on the basis of the average reimbursement actually paid or credited to the insured or applied as partial payment to renewals of premium deposits on one-year policies expiring during the semester ending immediately preceding the date the tax is payable.
(2) An insurer shall continue to pay such tax for so long as any such insurance remains in force and the insurer receives premiums, has such premium deposits, or receives annuity considerations therefor, notwithstanding that the insurer may have withdrawn from Puerto Rico, ceased issuing new coverages, or has had its certificate of authority suspended or revoked by the Commissioner.
(3) No insurer shall pass on to its insured the payment of the premium tax hereinabove levied in addition to the premium rates filed with the Commissioner.
(4) This section does not apply to surplus line insurance underwritten pursuant to §§ 1001–1020 of this title, nor to authorized premium surcharges pursuant to §§ 3801–3819 of this title, nor to nonprofit insurers engaged in underwriting life insurance contracts and annuities for educational institutions personnel, nor to reinsurance, nor to premiums with a medical-hospital professional liability coverage underwritten by authorized insurers.
(5) [Repealed. Act July 23, 1974, No. 136, Part 1, p. 641, § 1.]
History —Ins. Code § 7.020; June 28, 1961, No. 129, p. 277, § 2; May 31, 1973, No. 73, p. 328, § 9; July 23, 1974, No. 136, Part 1, p. 641, § 1; July 20, 1979, No. 139, p. 328, § 1; June 29, 1996, No. 62, § 9; Dec. 19, 2002, No. 284, § 1; Aug. 1, 2005, No. 38, § 2.