P.R. Laws tit. 26, § 702a
(1) Every domestic insurer who maintains a home office in Puerto Rico as defined hereinafter, and the Insurers’ Syndicate as defined in § 4102 of this title, shall be exempted from the payment of taxes on premiums and annuity considerations established in § 702 of this title. The insurers thus exempted shall not be bound to comply with the provisions of §§ 703 and 704 of this title. Furthermore, all capital stock, obligations and securities issued by foreign corporations, companies or other entities owned by a domestic insurer who maintains a home office in Puerto Rico, shall also be exempted from the payment of personal property taxes levied under §§ 5001 et seq. of Title 21.
(2) By a home office, in the case of domestic insurers, it shall be understood an office performing the sale, underwriting, issuing and rendering of services related to insurance, including the following: actuarial functions, accounting functions, both in the operation of insurance and investment, medical functions (when required), legal services, approval or refusal of applications for insurance and the issuance of insurance policies, approval and advertisements and publications, public relations, supervision and training of insurance producers and service representatives, payment of any kind of claim and the keeping of all documents and records related to the functions hereinbelow listed. The collections made shall be kept at all times deposited in local banking institutions.
(3) Every insurer eligible for tax exemption under this section shall furnish the Commissioner of Insurance, on or before January 31 of each year, in the forms provided by him, proof that it qualifies for the exemption provided by this section.
(4) The Commissioner of Insurance shall be empowered to regulate the tax exemption provided by this section.
(5) The tax exemption provided by this section shall be effective beginning with calendar year 1962.
History —Ins. Code, added as § 7.021 on June 28, 1961, No. 129, p. 277, § 1; July 23, 1974, No. 212, Part 2, p. 120; Dec. 30, 1986, No. 4, p. 869, § 4; July 14, 1998, No. 126, § 3, eff. 30 days after July 14, 1998.